Super Micro Computer Inc (SMCI)

Cash ratio

		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	Jun 30, 2020	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	1,430,000	2,088,720	1,669,770	2,115,480	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
Short-term investments	US$ in thousands	—	—	—	100	100	100	200	200	1,590	1,590	300	1,556	1,556	1,556	1,556	128	128	128	128	128
Total current liabilities	US$ in thousands	1,357,810	2,871,100	2,345,720	1,717,700	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
Cash ratio		1.05	0.73	0.71	1.23	0.36	0.34	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

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,430,000K + $—K) ÷ $1,357,810K
= 1.05

The cash ratio of Super Micro Computer Inc has shown fluctuations over the analyzed period. It was relatively low in the first half of 2020, ranging from 0.30 to 0.51, indicating that the company had a modest amount of cash to cover its current liabilities during that time. However, the ratio decreased to 0.23 by the end of March 2021, suggesting a potential decrease in liquidity.

Further, from June 2021 to December 2021, the cash ratio remained relatively stable, fluctuating between 0.21 and 0.25. This range indicated that Super Micro Computer Inc still had a low level of cash compared to its short-term obligations.

In the subsequent period up to the end of June 2022, the cash ratio continued to stay below 0.25, potentially indicating a prolonged liquidity concern for the company. However, there was a notable increase in the cash ratio to 1.23 by the end of March 2024, which could signify a significant improvement in the company's liquidity position.

The cash ratio then fluctuated between 0.71 and 1.05 from June 2024 to December 2024, indicating that Super Micro Computer Inc had a more comfortable level of cash to meet its short-term obligations during that period.

In conclusion, while the cash ratio of Super Micro Computer Inc experienced fluctuations, the significant increase observed by the end of March 2024 suggests an improvement in the company's liquidity position. Nonetheless, ongoing monitoring is advisable to assess the company's ability to meet its short-term liabilities effectively.