Super Micro Computer Inc (SMCI)
Current ratio
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,179,430 | 2,806,320 | 1,867,260 | 1,592,760 | 1,421,770 |
| Total current liabilities | US$ in thousands | 1,374,650 | 1,470,020 | 968,896 | 707,635 | 605,969 |
| Current ratio | 2.31 | 1.91 | 1.93 | 2.25 | 2.35 |
June 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,179,430K ÷ $1,374,650K
= 2.31
The current ratio is a liquidity ratio that measures a company's ability to meet its short-term obligations using its most liquid assets. A higher current ratio indicates a stronger ability to pay off short-term liabilities. Let's analyze the trend of Super Micro Computer Inc's current ratio over the past five years.
The current ratio for Super Micro Computer Inc has fluctuated over the past five years. In Jun 30, 2019, the current ratio stood at 2.35, indicating the company had $2.35 in current assets for every $1 in current liabilities. This high ratio suggests a strong ability to cover short-term obligations.
In Jun 30, 2020, the current ratio decreased to 2.25, indicating a slight decline in liquidity compared to the previous year. However, the ratio remained relatively high, signaling a continued ability to meet short-term obligations using current assets.
In Jun 30, 2021, the current ratio decreased further to 1.93, falling below the ideal threshold of 2. This indicates a potential liquidity challenge, as the company's current assets may not be as sufficient to cover its short-term liabilities.
The trend continued in Jun 30, 2022, with a current ratio of 1.91, suggesting a further decrease in liquidity. This could be a cause for concern as the company's ability to meet short-term obligations weakened.
However, in Jun 30, 2023, the current ratio improved to 2.31, signaling a recovery in liquidity. This increase indicates that the company's current assets have become more capable of covering its short-term liabilities compared to the previous year.
Overall, the fluctuation in Super Micro Computer Inc's current ratio over the past five years suggests varying levels of liquidity and ability to meet short-term obligations. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's short-term financial health and ability to manage its current liabilities.
Peer comparison
Jun 30, 2023