Super Micro Computer Inc (SMCI)

Current 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
Total current assets	US$ in thousands	12,468,100	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
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
Current ratio		5.32	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

June 30, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $12,468,100K ÷ $2,344,790K
= 5.32

The analysis of Super Micro Computer Inc.'s current ratio over the specified period reveals fluctuations indicative of the company’s evolving liquidity position. Initially, the current ratio demonstrated a downward trend from 2.51 as of September 30, 2020, declining to a low of 1.79 by March 31, 2022. This decline suggests a gradual reduction in the company's short-term liquidity and a potential increase in current liabilities relative to current assets.

Subsequently, the ratio experienced some stabilization and modest growth, returning to approximately 2.89 by December 31, 2022, and remaining above 2.0 through March 31, 2023. However, notable increases are observed in the more recent periods, with the ratio significantly rising to 4.69 on March 31, 2024, and reaching as high as 6.66 by March 31, 2025. These elevated ratios in the latest periods imply a strong liquidity cushion, indicating that the company’s current assets substantially exceed its current liabilities.

Overall, the trajectory shows initial variability with a decline in liquidity levels during 2020 through early 2022, followed by a substantial improvement starting in 2024. The sharp increase in the current ratio in recent periods suggests enhanced liquidity management or an accumulation of current assets relative to liabilities, positioning the company with a comfortable liquidity buffer. This trend could be viewed positively from a liquidity perspective but warrants further analysis to ensure that such high levels of current assets are not excessively idle, which could impact operational efficiency.