Super Micro Computer Inc (SMCI)

Working capital turnover

		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	Jun 30, 2020
Revenue (ttm)	US$ in thousands	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	3,339,281
Total current assets	US$ in thousands	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	1,592,760
Total current liabilities	US$ in thousands	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	707,635
Working capital turnover		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	3.77

March 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $21,569,720K ÷ ($9,513,590K – $1,428,140K)
= 2.67

The analysis of Super Micro Computer Inc.'s working capital turnover ratio over the period from June 2020 through March 2025 indicates a generally stable performance with some notable fluctuations.

Between June 2020 and September 2023, the working capital turnover ratio predominantly remained within a narrow range of approximately 3.71 to 4.09. This consistency suggests a relatively stable efficiency in utilizing working capital to generate sales, with the ratio peaking at 4.09 in September 2021 and reaching its lowest point at 3.71 in September 2020. The ratio exhibited minor fluctuations around an average of approximately 3.8 to 4.0 during this period, indicating steady operational efficiency and effective working capital management.

Beginning in December 2023, a significant downward trend is observed, with the ratio decreasing sharply to 3.25. This decline continues into the subsequent quarters, reaching as low as 1.86 in March 2024. The sharp reduction reflects a notable change in the company's operational efficiency, potentially attributable to shifts in sales volume, working capital assets, or liabilities.

Following the trough in March 2024, the ratio shows a modest recovery, increasing to 2.25 by June 2024 and continuing upward to 2.69 in September 2024. However, the ratio remains below historical levels, indicating ongoing challenges or changes in operational dynamics affecting capital utilization.

Overall, the trend reflects an initial period of stability followed by a marked contraction in working capital turnover in early 2024, with partial recovery thereafter. The substantial decrease in the ratio during this period suggests a possible decrease in sales efficiency relative to working capital or changes in the company's working capital structure, warranting further investigation into underlying operational or financial factors.