Super Micro Computer Inc (SMCI)

Working capital turnover

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	3,297,389	3,268,480	3,329,046	3,500,360	3,324,294
Total current assets	US$ in thousands	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	1,648,360	1,520,700	1,420,330	1,421,770	1,356,070
Total current liabilities	US$ in thousands	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	784,823	671,740	588,412	605,969	564,069
Working capital turnover		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	3.82	3.85	4.00	4.29	4.20

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,252,750K ÷ ($4,842,360K – $1,992,090K)
= 3.25

The working capital turnover ratio for Super Micro Computer Inc has shown a fluctuating trend over the past eight quarters. The ratio measures how efficiently the company is utilizing its working capital to generate revenue.

In Q3 and Q4 of 2023 and Q1 of 2024, the working capital turnover ratio peaked at 4.05, 3.95, and 3.76 respectively, indicating a high level of efficiency in utilizing its working capital to generate sales. However, in Q2 of 2024, the ratio decreased to 3.25, which may suggest a decrease in the efficiency of working capital management during that period.

Overall, the company has maintained a working capital turnover ratio typically above 3.5, reflecting a consistent ability to efficiently utilize its working capital to generate revenue. The fluctuations observed in the ratio over the quarters may signify varying levels of operational efficiency and effectiveness in managing the company's working capital during the respective periods.