Super Micro Computer Inc (SMCI)

Cash ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash and cash equivalents	US$ in thousands	1,669,770	1,669,770	440,459	267,397	232,266
Short-term investments	US$ in thousands	—	—	100	300	4,578
Total current liabilities	US$ in thousands	2,345,720	2,403,940	1,374,650	1,470,020	968,896
Cash ratio		0.71	0.69	0.32	0.18	0.24

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,669,770K + $—K) ÷ $2,345,720K
= 0.71

The cash ratio of Super Micro Computer Inc has exhibited notable fluctuations over the observed periods. As of June 30, 2021, the company's cash ratio stood at 0.24, indicating that on that date, the company's cash holdings were sufficient to cover approximately 24% of its current liabilities purely in cash. This level suggests a relatively conservative liquidity position, with a significant portion of current liabilities financed through other current assets or sources.

By June 30, 2022, the cash ratio declined to 0.18, reflecting a further decrease in the company's cash holdings relative to its current liabilities. This downward trend suggests that the company moved towards a more conservative cash position, possibly due to increased deployment of cash reserves for operational needs, investments, or debt servicing.

Between June 30, 2022, and June 30, 2023, the cash ratio increased substantially to 0.32. This improvement indicates a relative strengthening of cash holdings in relation to current liabilities, which could be attributed to prudent cash management, improved cash generation, or strategic liquidity management initiatives.

The upward trajectory continued markedly in the subsequent years, with the cash ratio reaching 0.69 on June 30, 2024. This near doubling of the ratio signifies a significant increase in cash reserves relative to current liabilities, potentially enhancing the company's liquidity buffer and financial flexibility. The trend persisted into June 30, 2025, with the ratio further increasing to 0.71, highlighting an ongoing emphasis on maintaining substantial cash reserves.

Overall, the data demonstrates that Super Micro Computer Inc has demonstrated a trajectory of improving cash liquidity over the three-year span, culminating in a robust cash ratio of 0.71 in mid-2025. This progression reflects a strategic emphasis on liquidity conservation and cash management, positioning the company to better withstand short-term liabilities and financial uncertainties in the future.