Super Micro Computer Inc (SMCI)

Liquidity ratios

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
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
Quick ratio 3.31 1.68 1.88 2.19 1.12 0.87 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
Cash ratio 1.05 0.73 0.71 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 0.38

Super Micro Computer Inc's liquidity ratios have shown fluctuations over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, improved from 2.10 in March 2020 to a peak of 6.38 in December 2024. This suggests that the company became more capable of meeting its short-term obligations as its current assets increased relative to its current liabilities.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also experienced variability. It ranged from 0.62 in March 2022 to 3.31 in December 2024. This ratio indicates Super Micro Computer Inc's ability to meet its short-term liabilities using its most liquid assets quickly.

Lastly, the cash ratio, which is the most conservative liquidity ratio focusing solely on cash and cash equivalents to cover current liabilities, reached its peak at 1.23 in March 2024. This suggests the company has been effectively building up its cash reserves to handle short-term obligations.

Overall, Super Micro Computer Inc's liquidity ratios have displayed both strengths and weaknesses over the years, with improvements in certain periods reflecting better liquidity management practices. It is essential for the company to maintain an appropriate level of liquidity to ensure financial stability and meet its obligations effectively.

See also:

Super Micro Computer Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
Cash conversion cycle days 114.64 125.64 147.42 162.38 116.16 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

Super Micro Computer Inc's cash conversion cycle has shown some fluctuations over the examined periods.

The cash conversion cycle measures how quickly a company can convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is generally favorable as it indicates that the company is able to collect cash from customers more quickly, manage its inventory efficiently, and pay its suppliers at a later date.

From March 31, 2020, to December 31, 2024, the cash conversion cycle for Super Micro Computer Inc ranged from a low of 92.42 days to a high of 162.38 days. There are fluctuations in the cycle over time, with some periods showing improvement and others indicating challenges in managing working capital effectively.

It is important for the company to closely monitor its cash conversion cycle and work towards reducing it to improve its efficiency in managing cash flows, inventory, and payment cycles. A longer cash conversion cycle can indicate inefficiencies in the company's operations or difficulties in collecting cash from customers promptly, which could impact its liquidity and financial performance.