Super Micro Computer Inc (SMCI)
Quick ratio
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 440,459 | 267,397 | 232,266 | 210,533 | 248,164 |
| Short-term investments | US$ in thousands | 200 | 1,590 | 4,578 | 128 | 878 |
| Receivables | US$ in thousands | 1,148,260 | 842,911 | 472,512 | 412,457 | 407,063 |
| Total current liabilities | US$ in thousands | 1,374,650 | 1,470,020 | 968,896 | 707,635 | 605,969 |
| Quick ratio | 1.16 | 0.76 | 0.73 | 0.88 | 1.08 |
June 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($440,459K
+ $200K
+ $1,148,260K)
÷ $1,374,650K
= 1.16
The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations using its most liquid assets. It is calculated by dividing the sum of cash, cash equivalents, and accounts receivable by the current liabilities. A quick ratio of 1 is generally considered healthy, as it indicates that the company can fully cover its short-term liabilities with its liquid assets.
Looking at the quick ratio of Super Micro Computer Inc over the past five years, we observe fluctuations.
In 2023, the quick ratio stands at 1.26, representing a significant improvement from the prior year. This suggests a strengthening ability to meet short-term obligations using liquid assets.
In 2022, the quick ratio was 0.86, indicating a decrease from the previous year. This may raise concerns about the company's short-term liquidity.
In 2021 and 2020, the quick ratio was relatively stable at 0.85 and 1.05 respectively, indicating that the company's ability to cover short-term liabilities with liquid assets remained consistent compared to 2022 but declined compared to 2019.
In 2019, the quick ratio was 1.22, demonstrating a relatively strong ability to meet short-term obligations using liquid assets.
Overall, the trend in the quick ratio indicates fluctuations in the company's short-term liquidity position. The increase in 2023 is a positive sign, but the previous year's decreased ratio may require further investigation into the company's management of its liquid assets and short-term liabilities.
Peer comparison
Jun 30, 2023