Super Micro Computer Inc (SMCI)

Quick ratio

		Mar 31, 2025	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
Cash	US$ in thousands	2,536,100	1,430,000	2,088,720	1,669,770	2,115,480	725,660	543,156	440,459	362,801	304,595	238,268	267,397	247,424	247,407	270,047	232,266	177,894	315,610	300,089	210,533
Short-term investments	US$ in thousands	—	—	—	—	100	100	100	200	200	1,590	1,590	300	1,556	1,556	1,556	1,556	1,699	1,699	1,699	1,699
Receivables	US$ in thousands	2,642,560	3,059,510	2,731,740	2,668,420	1,650,150	1,502,970	845,729	1,148,260	672,055	768,167	736,312	834,513	679,785	497,431	458,076	463,834	407,365	323,021	322,845	403,745
Total current liabilities	US$ in thousands	1,428,140	1,357,810	2,871,100	2,403,940	1,717,700	1,992,090	1,604,820	1,374,650	1,092,380	916,940	1,353,360	1,470,020	1,496,160	1,199,580	1,101,480	968,896	781,996	672,971	589,688	707,635
Quick ratio		3.63	3.31	1.68	1.80	2.19	1.12	0.87	1.16	0.95	1.17	0.72	0.75	0.62	0.62	0.66	0.72	0.75	0.95	1.06	0.87

March 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,536,100K + $—K + $2,642,560K) ÷ $1,428,140K
= 3.63

The analysis of Super Micro Computer Inc.'s quick ratio over the provided period reveals considerable fluctuations, reflecting the company's liquidity dynamics and short-term financial health.

Between June 30, 2020, and March 31, 2021, the quick ratio experienced a gradual decline from 0.87 to 0.75. This downward trend indicates a weakening in the company's ability to meet its short-term obligations using its most liquid assets, such as cash, marketable securities, and accounts receivable, relative to current liabilities. The ratio further decreased to 0.66 by September 30, 2021, and continued this downward trajectory to 0.62 by December 31, 2021, and remains steady at this level through March 31, 2022.

Starting from June 30, 2022, the quick ratio shows a notable recovery, rising to 0.75, then slightly declining to 0.72 by September 30, 2022. By the end of 2022 (December 31), there is a significant increase to 1.17, indicating a strengthening liquidity position, with the company's quick assets surpassing its current liabilities at that point.

The upward trend accelerates in 2023, with ratios of 0.95 in March, 1.16 in June, and 0.87 in September. The ratio further improves to 1.12 by December 2023, solidifying its position above the critical 1.0 threshold, which generally signifies sufficient liquidity to cover immediate liabilities.

The most remarkable change occurs in the data for 2024, where the quick ratio jumps sharply to 2.19 in March and continues to rise, reaching 3.63 by March 2025. These elevated levels suggest a substantial increase in liquid assets relative to current liabilities, pointing to an enhanced liquidity buffer and a more conservative short-term asset management approach.

Overall, the company's quick ratio exhibits initial vulnerability during 2020 and 2021, with ratios below or near 1.0, indicating potential liquidity pressures. However, from mid-2022 onward, there is a marked improvement, culminating in robust liquidity positions by 2024 and into early 2025, which may reflect strategic shifts toward maintaining higher levels of liquid assets or improved working capital management.