Super Micro Computer Inc (SMCI)

Cash ratio

		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	Jun 30, 2020
Cash and cash equivalents	US$ in thousands	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	210,533
Short-term investments	US$ in thousands	—	—	—	—	100	100	100	200	200	1,590	1,590	300	1,556	1,556	1,556	1,556	1,699	1,699	1,699	1,699
Total current liabilities	US$ in thousands	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	707,635
Cash ratio		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	0.30

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,536,100K + $—K) ÷ $1,428,140K
= 1.78

The cash ratio of Super Micro Computer Inc. exhibits considerable fluctuations over the analyzed period, reflecting periods of liquidity variation in relation to its current liabilities. Starting at 0.30 as of June 30, 2020, the ratio generally increased, reaching a peak of 0.51 by September 30, 2020, indicating a significant improvement in the company’s immediate liquidity position during that quarter.

Throughout 2021 and into early 2022, the ratio remained relatively stable but declined gradually, reaching a low of 0.17 on March 31, 2022. This reduction suggests a period where the company's cash holdings in relation to its current liabilities diminished, potentially reflecting increased operational activity or cash utilization.

Subsequently, the ratio gradually recovered, reaching 0.33 by December 31, 2022, and maintaining levels around 0.32 to 0.34 through the first half of 2023. This indicates a stabilization in liquidity, with the company maintaining a steady but moderate cash cushion relative to its current liabilities.

A notable shift occurs starting in the fourth quarter of 2023, with the ratio surging to 1.23. This substantial increase signifies a significant upward move in cash holdings relative to short-term obligations, potentially signifying improved liquidity position, cash accumulation, or a change in accounting/leverage strategies.

The upward trend persists into 2024, with ratios of 0.69, 0.73, and 1.05 in the first three quarters respectively, indicating maintained strong liquidity levels. By March 31, 2025, the ratio further escalates to 1.78, reflecting a robust cash position that exceeds current liabilities by a considerable margin.

Overall, the cash ratio demonstrates considerable variability, with overall an increasing trend from mid-2023 onward. This pattern suggests a strategic build-up of cash reserves or a reduction in current liabilities, positioning the company with enhanced liquidity capacity at the most recent date analyzed.