Super Micro Computer Inc (SMCI)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	5,169,910	2,536,100	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
Short-term investments	US$ in thousands	—	3,482	100	—	—	100	100	100	200	200	1,590	1,590	300	1,556	1,556	1,556	1,556	1,699	1,699	1,699
Total current liabilities	US$ in thousands	2,344,790	1,428,140	1,357,810	2,871,100	2,403,940	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
Cash ratio		2.20	1.78	1.05	0.73	0.69	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

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,169,910K + $—K) ÷ $2,344,790K
= 2.20

The cash ratio of Super Micro Computer Inc has exhibited significant variability over the analyzed period, reflecting fluctuations in the company's liquidity position. Initially, the cash ratio was relatively moderate, with values of 0.51 as of September 30, 2020, and declining slightly to 0.47 by the end of that year. These figures suggest that, during that time, the company could cover approximately half of its current liabilities with cash and cash equivalents.

Between March 2021 and September 2022, the cash ratio experienced a notable decline, reaching as low as 0.17 by March 2022. This reduction indicates a diminishing cushion of readily available cash relative to current liabilities, which could imply increased utilization of cash for operations, investments, or other obligations, or a decrease in cash holdings.

Subsequently, beginning in December 2022, the cash ratio shows a marked upward trend, rising from 0.33 to 0.36 by the end of 2023, and further escalating sharply in 2024 and into 2025. Notably, the ratio surpasses 1.0 during the first quarter of 2024, reaching 1.23, and continues to increase, hitting 2.20 by June 2025. These elevated levels suggest that the company's cash holdings have grown substantially relative to its current liabilities, indicating a very conservative liquidity stance or a strategic accumulation of cash reserves.

Overall, the trajectory from a low point in early 2022 to high levels in 2024 and mid-2025 reflects a shift toward greater liquidity over time. The initial decline might have been associated with operational expansion or cash utilization, while the subsequent increase indicates a focus on liquidity enhancement, possibly for strategic positioning, risk mitigation, or upcoming investments.