Super Micro Computer Inc (SMCI)

Working capital turnover

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Revenue (ttm)	US$ in thousands	21,972,040	21,569,720	20,819,880	18,806,840	14,989,250	11,819,520	9,252,750	7,391,030	7,123,490	6,574,090	6,646,280	6,015,500	5,196,100	4,629,620	4,170,011	3,827,897	3,557,417	3,384,563	3,261,090	3,301,727
Total current assets	US$ in thousands	12,468,100	9,513,590	8,667,070	9,851,580	9,054,620	8,063,930	4,842,360	3,570,830	3,179,430	2,715,180	2,649,500	2,879,880	2,806,320	2,678,720	2,293,290	2,036,960	1,867,260	1,639,650	1,544,270	1,479,520
Total current liabilities	US$ in thousands	2,344,790	1,428,140	1,357,810	2,871,100	2,403,940	1,717,700	1,992,090	1,604,820	1,374,650	1,092,380	916,940	1,353,360	1,470,020	1,496,160	1,199,580	1,101,480	968,896	781,996	672,971	589,688
Working capital turnover		2.17	2.67	2.85	2.69	2.25	1.86	3.25	3.76	3.95	4.05	3.84	3.94	3.89	3.91	3.81	4.09	3.96	3.95	3.74	3.71

June 30, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $21,972,040K ÷ ($12,468,100K – $2,344,790K)
= 2.17

The analysis of Super Micro Computer Inc.'s working capital turnover ratios over the specified period reveals notable fluctuations and trends. From September 30, 2020, through December 31, 2023, the ratio generally exhibited a slight upward trend, rising from 3.71 to a peak of 4.05. This indicates an improvement in the efficiency with which the company utilized its working capital to generate sales during this period. The ratios during this interval suggest relatively stable management of working capital, with a progressive increase reflecting possibly better operational efficiency or optimized asset management strategies.

However, commencing in early 2024, a significant decline in the working capital turnover ratio is observed. The ratio drops sharply from 3.95 on June 30, 2023, to 1.86 by March 31, 2024. Subsequently, the ratio demonstrates some recovery, rising to 2.69 by September 30, 2024, and reaching approximately 2.67 by March 31, 2025. The most substantial decline occurs between June 2023 and March 2024, indicating a marked decrease in the efficiency of working capital utilization. This could suggest an increase in working capital levels without proportional sales increases, or a change in the company’s operational cycle, potentially impacted by external factors or internal strategic shifts.

Overall, the pattern reveals a period of stable and improving efficiency in managing working capital up to late 2023, followed by a notable decline starting in early 2024. The fluctuations in the ratio reflect varying levels of operational efficiency, asset management, and potentially strategic adjustments impacting working capital utilization during this timeframe.