Super Micro Computer Inc (SMCI)

Cash conversion cycle

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Days of inventory on hand (DOH)	days	122.34	125.39	90.34	128.33	125.69
Days of sales outstanding (DSO)	days	66.95	65.18	58.84	58.62	47.59
Number of days of payables	days	41.57	43.95	48.55	54.42	73.94
Cash conversion cycle	days	147.71	146.62	100.63	132.53	99.35

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 122.34 + 66.95 – 41.57
= 147.71

The cash conversion cycle (CCC) for Super Micro Computer Inc has exhibited notable fluctuations over the period from June 2021 to June 2025. As of June 30, 2021, the CCC was 99.35 days, indicating the time span from the outlay of cash for inventory purchase to the collection of receivables was approximately 99 days. Moving into the subsequent year, this measure increased significantly to 132.53 days by June 30, 2022, suggesting a lengthening of the overall cycle, potentially due to extended inventory holding periods, delayed receivables, or a combination of both.

The trend reversed somewhat by June 30, 2023, when the CCC decreased to 100.63 days, nearly returning to the 2021 level, implying improvements in either receivables collection, inventory management, or accounts payable practices. However, this recovery was short-lived, as by June 30, 2024, the CCC surged again to 146.62 days, reflecting either longer inventory cycles, slower receivables collection, or a strategic extension of payables, thereby increasing the working capital tie-up duration.

The most recent data point, from June 30, 2025, shows the CCC further marginally increased to 147.71 days, maintaining a high level similar to the previous year. This suggests that the company continues to experience extended cash conversion periods, which may impact liquidity and working capital management. Overall, the data indicates a period of volatility with an initial increase, partial recovery, followed by significant elongation, pointing to structural or operational factors affecting the company's cash flow efficiency over these years.