Super Micro Computer Inc (SMCI)

Quick ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash	US$ in thousands	1,669,770	440,459	267,397	232,266	210,533
Short-term investments	US$ in thousands	—	100	300	4,578	128
Receivables	US$ in thousands	2,737,330	1,148,260	842,911	472,512	412,457
Total current liabilities	US$ in thousands	2,345,720	1,374,650	1,470,020	968,896	707,635
Quick ratio		1.88	1.16	0.76	0.73	0.88

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,669,770K + $—K + $2,737,330K) ÷ $2,345,720K
= 1.88

The Quick Ratio of Super Micro Computer Inc, a key liquidity measure, has shown variability over the years. As of June 30, 2020, the Quick Ratio was 0.88, indicating that the company may have had difficulty meeting its short-term obligations with its most liquid assets alone. By June 30, 2021, the ratio decreased further to 0.73, suggesting a potential worsening liquidity position. However, there was a slight improvement by June 30, 2022, with the Quick Ratio increasing to 0.76.

The most notable change occurred by June 30, 2023, when the Quick Ratio spiked to 1.16, surpassing the ideal industry benchmark of 1. This substantial increase implies that Super Micro Computer Inc significantly enhanced its ability to cover immediate liabilities using its liquid assets. By June 30, 2024, the Quick Ratio further improved to 1.88, demonstrating a substantial strengthening of the company's liquidity position.

Overall, the trend in the Quick Ratio indicates that Super Micro Computer Inc has made significant progress in managing its short-term liquidity effectively, thereby potentially reducing its financial risk and enhancing its ability to meet obligations as they come due.