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.