Super Micro Computer Inc (SMCI)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	725,660	543,156	440,459	362,801	304,595	238,268	267,397	247,424	247,407	270,047	232,266	177,894	315,610	300,089	210,533	300,859	309,038	239,300	248,164	169,735
Short-term investments	US$ in thousands	200	126,700	200	200	1,590	1,590	1,590	1,556	1,556	1,556	1,556	128	128	128	128	128	128	878	878	7,596
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
Cash ratio		0.36	0.42	0.32	0.33	0.33	0.18	0.18	0.17	0.21	0.25	0.24	0.23	0.47	0.51	0.30	0.38	0.46	0.41	0.41	0.31

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($725,660K + $200K) ÷ $1,992,090K
= 0.36

The cash ratio for Super Micro Computer Inc has shown a fluctuating trend over the past eight quarters, ranging from 0.18 to 0.44. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

In the most recent quarter, Q2 2024, the cash ratio stands at 0.44, indicating that the company has $0.44 in cash and cash equivalents for every dollar of current liabilities. This suggests a relatively strong liquidity position and the ability to meet its short-term obligations.

Comparing this to the previous quarters, we see a gradual improvement in the cash ratio from Q3 2023 to Q2 2024. This indicates that the company has been managing its cash resources more efficiently over time.

However, it is worth noting that the cash ratio dipped significantly in Q1 2023 to 0.19, which could have been a cause for concern regarding the company's liquidity position at that time. This decrease might warrant a closer examination of the company's cash management practices during that period.

Overall, the upward trend in the cash ratio indicates that Super Micro Computer Inc has been strengthening its ability to cover short-term obligations with available cash, which is generally a positive sign for investors and creditors.