Super Micro Computer Inc (SMCI)

Current 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
Total current assets	US$ in thousands	8,667,070	9,851,580	8,931,960	8,063,930	4,842,360	3,570,830	3,179,430	2,715,180	2,649,500	2,879,880	2,806,320	2,678,720	2,293,290	2,036,960	1,867,260	1,639,650	1,544,270	1,479,520	1,592,760	1,648,360
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
Current ratio		6.38	3.43	3.81	4.69	2.43	2.23	2.31	2.49	2.89	2.13	1.91	1.79	1.91	1.85	1.93	2.10	2.29	2.51	2.25	2.10

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $8,667,070K ÷ $1,357,810K
= 6.38

Super Micro Computer Inc's current ratio has shown fluctuations over the past few years. The current ratio measures the company's ability to meet its short-term obligations with its current assets.

From March 31, 2020, to March 31, 2021, the current ratio remained relatively stable between 2.10 and 2.29, indicating the company had a comfortable buffer of current assets to cover its current liabilities during this period.

However, from June 30, 2021, to March 31, 2022, there was a decline in the current ratio, dropping to as low as 1.79 by March 31, 2022. This may suggest potential liquidity challenges or increased short-term obligations relative to current assets during this period.

Subsequently, there was a gradual improvement in the current ratio from June 30, 2022, to December 31, 2024, reaching a high of 6.38 by December 31, 2024. This significant increase indicates that the company significantly strengthened its liquidity position and had a substantial excess of current assets to cover its short-term liabilities by the end of 2024.

Overall, while the current ratio of Super Micro Computer Inc has shown fluctuations, it appears that the company has managed to maintain a generally healthy liquidity position, with periods of both stability and improvement in its ability to cover short-term liabilities with current assets.