Super Micro Computer Inc (SMCI)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 3.63 | 3.31 | 1.68 | 1.80 | 2.19 | 1.12 | 0.87 | 1.16 | 0.95 | 1.17 | 0.72 | 0.75 | 0.62 | 0.62 | 0.66 | 0.72 | 0.75 | 0.95 | 1.06 | 0.87 |
| 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 |
The liquidity ratios of Super Micro Computer Inc. over the period from June 2020 to March 2025 reflect a trend of generally improving liquidity positions, with notable fluctuations and significant increases in the later periods.
The current ratio, which measures the company's ability to meet short-term obligations using all current assets, demonstrated a declining trend from a high of 2.25 in June 2020 to a low of approximately 1.79 in March 2022. After this dip, the ratio recovered and stabilized above 2.0, reaching a peak of 6.66 in March 2025. This substantial increase indicates a significant strengthening in liquidity, suggesting that as of the latest reporting periods, the company maintains ample current assets relative to its current liabilities.
The quick ratio, which excludes inventories and prepaid expenses to assess immediate liquidity, followed a similar pattern. It started at 0.87 in June 2020, increased slightly over the subsequent periods, then declined to around 0.62 by March 2022. From late 2022 onward, it showed a marked upward trajectory, culminating at 3.63 in March 2025. This indicates an improved capacity to meet short-term liabilities with liquid assets without relying on inventory sales, reflecting an enhancement in near-term liquidity.
The cash ratio, representing the most conservative measure of liquidity by focusing solely on cash and cash equivalents, was relatively low at 0.30 in June 2020. It experienced modest growth, remaining below 0.5 until December 2022. Starting in 2023, a notable rise occurred, with the ratio surpassing 1.0 in March 2024 and reaching 1.78 by March 2025. This trend indicates that the company has substantially increased its cash holdings relative to short-term liabilities, enhancing its immediate liquidity cushion.
Overall, the data depicts a trajectory of liquidity improvement over the analyzed period, especially in the most recent years. The substantial growth in all three ratios toward the end of the period suggests that Super Micro Computer Inc. has bolstered its liquidity position, potentially reflecting improved cash management, more liquid assets on hand, and a stronger ability to meet short-term financial obligations.
See also:
Additional liquidity measure
| 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 conversion cycle | days | 106.27 | 114.64 | 125.64 | 145.81 | 162.38 | 116.16 | 99.71 | 100.63 | 98.33 | 99.77 | 114.02 | 132.53 | 127.94 | 114.37 | 112.56 | 99.35 | 99.71 | 90.96 | 93.60 | 100.42 |
The cash conversion cycle (CCC) for Super Micro Computer Inc. exhibits notable fluctuations over the observed period, reflecting changes in the company's operational efficiencies related to receivables collection, inventory management, and payables deferral.
From June 30, 2020, the CCC was approximately 100.42 days. This period experienced a downward trend, reaching a low of approximately 90.96 days by December 31, 2020, suggesting improved efficiency in converting inventory and receivables into cash. However, this efficiency declined somewhat in 2021, with readings increasing to over 112 days by September 30, 2021, and reaching a peak of approximately 114.37 days at the end of 2021. This indicates a lengthening in the duration of the working capital cycle, possibly due to slower receivables collection, increased inventory holdings, or changes in payment terms with suppliers.
The trend continued into 2022, with the CCC rising sharply to 127.94 days by March and reaching a peak of 132.53 days by June 2022. This period reflects a significant elongation of the cash cycle, which could indicate operational or market challenges, such as higher inventory levels or longer receivables collection periods, or a strategic extension of payables.
Subsequently, there was a noticeable reduction in the CCC during the latter part of 2022, reaching about 99.77 days at year end. This decline persisted into 2023 with slight variations, maintaining a level near 98 to 100 days through September 2023. These reductions suggest some operational improvements or adjustments in working capital management.
However, the cycle lengthened again sharply in the first quarter of 2024, reaching approximately 162.38 days, indicating a substantial deterioration in working capital efficiency. This lengthened cycle persisted into mid-2024 before gradually decreasing to around 106 days by the third quarter of 2025, reflecting renewed improvements or strategic shifts.
Overall, the company's cash conversion cycle has experienced significant volatility over the analyzed period. Periods of elongation may signal operational difficulties or strategic decisions impacting receivables, inventory, or payables, while shorter intervals suggest periods of increased efficiency. The fluctuations highlight the importance of ongoing working capital management in sustaining operational liquidity and optimizing cash flows.