Super Micro Computer Inc (SMCI)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	87.42	73.81	72.00	110.25	124.45	151.57	116.39	122.79	90.34	104.60	94.99	126.58	128.33	146.00	141.32	131.61	125.69	114.88	107.63	101.73
Days of sales outstanding (DSO)	days	39.45	44.97	53.64	53.02	64.98	50.96	59.29	41.77	58.84	37.31	42.19	44.68	58.62	53.59	43.54	43.68	47.59	43.93	36.15	35.69
Number of days of payables	days	23.94	12.26	11.00	37.63	43.62	40.15	59.52	64.85	48.55	43.58	37.41	57.24	54.42	71.65	70.49	62.73	73.94	59.10	52.82	43.82
Cash conversion cycle	days	102.92	106.52	114.64	125.64	145.81	162.38	116.16	99.71	100.63	98.33	99.77	114.02	132.53	127.94	114.37	112.56	99.35	99.71	90.96	93.60

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 87.42 + 39.45 – 23.94
= 102.92

The data indicates fluctuations in Super Micro Computer Inc’s cash conversion cycle (CCC) over the specified periods. Initially, the CCC decreased from 93.60 days on September 30, 2020, to a low of 90.96 days by December 31, 2020, reflecting improved efficiency in managing inventory and receivables relative to payables. However, commencing in early 2021, the CCC experienced a gradual elongation, reaching approximately 112.56 days by September 30, 2021, and further increasing to a peak of 132.53 days on June 30, 2022.

This increase suggests longer periods for converting investments in inventory and receivables into cash, potentially due to extended inventory turnover or delayed collections. Post-2022, the CCC showed some reduction, declining to around 99.77 days by December 2022, indicating a partial improvement in cash cycle management. Nevertheless, the cycle lengthened again, reaching 162.38 days on March 31, 2024, signaling a significant deterioration in the cash conversion efficiency. Subsequently, the CCC decreased to 106.52 days by March 2025, partially restoring operational efficiency.

Overall, the trend illustrates periods of both deterioration and improvement in cash cycle management, with a notable peak in early 2024 suggesting challenges in inventory or receivables turnover, and subsequent efforts possibly aimed at improving cash flow timing. The data underscores variability in operational efficiency relating to working capital management practices during this timeframe.