Super Micro Computer Inc (SMCI)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 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 2.26 2.41 2.35 2.40
Quick ratio 1.12 0.94 1.16 0.95 1.17 0.72 0.76 0.62 0.62 0.66 0.73 0.76 0.97 1.06 0.88 0.83 1.02 1.04 1.08 0.92
Cash ratio 0.36 0.42 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 0.38 0.46 0.41 0.41 0.31

Super Micro Computer Inc has shown consistent improvement in its liquidity ratios over the past eight quarters. The current ratio, measuring the company's ability to meet short-term obligations with its current assets, has been steadily increasing, suggesting a healthier liquidity position. The quick ratio, a more stringent measure of liquidity that excludes inventories from current assets, has also displayed a positive trend, although with some fluctuations.

The cash ratio, which indicates the proportion of current liabilities that can be covered by cash alone, has been relatively stable and at a reasonable level. Overall, the company seems to have a strong liquidity position, as indicated by the current ratio consistently above 2, showing that it has more than enough current assets to cover its current liabilities. Additionally, the quick ratio above 1 demonstrates the company's ability to meet short-term obligations even when excluding inventories.

The cash ratio, although lower than the current and quick ratios, is still at an acceptable level, indicating that the company holds a sufficient amount of cash to cover its immediate liabilities. Super Micro Computer Inc's liquidity ratios reflect a strong financial position in terms of its ability to meet short-term obligations without facing liquidity issues.

See also:

Super Micro Computer Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 116.16 99.71 100.63 98.33 99.77 114.02 133.12 127.94 114.37 112.56 100.24 101.03 92.64 93.73 101.37 92.42 83.53 86.62 80.07 91.73

The cash conversion cycle of Super Micro Computer Inc has shown a fluctuating trend over the past eight quarters. In Q2 2024, the cash conversion cycle increased to 116.16 days compared to the previous quarter, indicating that the company took longer to convert its investments in inventory and accounts receivable into cash.

Although Q1 2024 saw a slight improvement in the cash conversion cycle, it remained relatively high at 99.71 days. This suggests that the company still faced challenges in efficiently managing its working capital.

Looking back over the previous quarters, there were fluctuations in the cash conversion cycle, with peaks in Q4 2022 (142.23 days) and Q1 2023 (123.12 days). These extended cycles may indicate inefficiencies in inventory management, collections, or payables.

Overall, the trend in the cash conversion cycle for Super Micro Computer Inc shows a need for the company to focus on streamlining its working capital processes to improve cash flow efficiency and liquidity management in the future.