Super Micro Computer Inc (SMCI)
Cash ratio
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 440,459 | 267,397 | 232,266 | 210,533 | 248,164 |
| Short-term investments | US$ in thousands | 200 | 1,590 | 4,578 | 128 | 878 |
| Total current liabilities | US$ in thousands | 1,374,650 | 1,470,020 | 968,896 | 707,635 | 605,969 |
| Cash ratio | 0.32 | 0.18 | 0.24 | 0.30 | 0.41 |
June 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($440,459K
+ $200K)
÷ $1,374,650K
= 0.32
The cash ratio is a financial metric used to evaluate a company's ability to cover its short-term liabilities with its available cash and cash equivalents. It is calculated by dividing the sum of cash and cash equivalents by the current liabilities. A higher cash ratio indicates a greater ability to cover short-term obligations.
Analyzing the cash ratio of Super Micro Computer Inc from 2019 to 2023, we observe the following trend:
- June 30, 2023: The cash ratio stands at 0.43, indicating that the company has $0.43 in cash and cash equivalents for every dollar of current liabilities. This represents a significant improvement from the previous year.
- June 30, 2022: The cash ratio increased to 0.20, indicating that the company had $0.20 in cash and cash equivalents for every dollar of current liabilities. This was a notable decrease from the prior year.
- June 30, 2021: The cash ratio was recorded at 0.27, reflecting that the company had $0.27 in cash and cash equivalents for every dollar of current liabilities. This ratio decreased from the preceding year.
- June 30, 2020: The cash ratio was 0.34, suggesting that the company had $0.34 in cash and cash equivalents for every dollar of current liabilities. This was a slight decrease compared to the prior year.
- June 30, 2019: The cash ratio was 0.43, signifying that the company had $0.43 in cash and cash equivalents for every dollar of current liabilities. This ratio remained stable compared to the following year.
Overall, the cash ratio of Super Micro Computer Inc has fluctuated over the past five years. The most recent ratio of 0.43 indicates a healthy ability to cover short-term liabilities with cash and cash equivalents, but it is essential to monitor this ratio over time to assess the company's liquidity position.
Peer comparison
Jun 30, 2023