Super Micro Computer Inc (SMCI)

Current 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
Total current assets	US$ in thousands	9,513,590	8,667,070	9,851,580	9,054,620	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
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
Current ratio		6.66	6.38	3.43	3.77	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

March 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $9,513,590K ÷ $1,428,140K
= 6.66

The analysis of Super Micro Computer Inc’s current ratio over the observed periods reveals insights into its short-term liquidity position. Historically, the company's current ratio fluctuated within a moderate range, indicating a generally stable ability to meet short-term obligations.

From June 30, 2020, to December 31, 2022, the current ratio ranged approximately between 1.85 and 2.89. During this period, the ratio remained comfortably above 1.5, suggesting sufficient liquidity buffers and prudent working capital management. Notably, the ratio peaked at 2.89 at the end of 2022, indicating an enhanced liquidity stance.

Subsequent periods saw fluctuations, with the ratio declining to 2.49 by March 2023 but then rebounding to levels around 2.31–2.43 through mid-2024. These levels suggest a consistent ability to cover current liabilities, though with some variability that might reflect operational adjustments or changes in working capital management strategies.

A remarkable change emerges starting in early 2024, with rapid increases in the current ratio reaching 4.69 by March 2024 and continuing to escalate to 6.66 by March 2025. This significant rise indicates an improving liquidity position, potentially attributable to increased current assets or reduced current liabilities, or a combination thereof. Such elevated ratios could suggest a conservative liquidity approach or accumulated short-term assets that surpass immediate obligations substantially.

In summary, Super Micro Computer Inc has maintained a stable and generally healthy short-term liquidity profile throughout most of the observed period, with ratios comfortably above 1.5. The recent sharp increase toward 2024 and 2025 reflects a markedly stronger liquidity position, which may imply heightened financial flexibility or strategic shifts in asset management.