Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Super Micro Computer Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Net income	1,152,666)	639,998)	285,163)	111,865)	84,308)	71,918)
Depreciation, amortization and non-cash interest	40,985)	34,904)	32,471)	28,185)	28,472)	24,202)
Stock-based compensation expense	231,507)	54,433)	32,816)	28,549)	20,189)	21,184)
Impairment of investments	—)	—)	—)	—)	—)	2,661)
Share of (income) loss from equity investee	(1,821)	3,633)	(1,206)	(173)	(2,402)	2,721)
Unrealized foreign currency exchange (gain) loss	(531)	(2,619)	(13,747)	2,482)	1,008)	(313)
Deferred income taxes, net	(168,499)	(92,969)	(6,817)	(8,390)	(13,772)	(17,100)
Other	12,343)	(668)	368)	(1,044)	1,364)	733)
Accounts receivable, net	(1,589,187)	(311,897)	(372,438)	(60,145)	(10,104)	92,085)
Inventories	(2,899,996)	100,042)	(504,642)	(189,466)	(181,310)	152,260)
Prepaid expenses and other assets	(44,646)	8,313)	(28,794)	(5,291)	(29,869)	8,410)
Accounts payable	679,190)	127,135)	50,145)	189,309)	59,889)	(173,410)
Accrued liabilities	92,942)	(50,311)	35,891)	24,705)	27,865)	11,456)
Income taxes payable	(110,897)	87,423)	29,002)	8,041)	(8,321)	5,831)
Deferred revenue	111,927)	70,587)	31,544)	(1,452)	350)	59,800)
Other long-term liabilities	8,045)	(4,424)	(10,557)	(4,220)	(8,001)	116)
Changes in operating assets and liabilities	(3,752,622)	26,868)	(769,849)	(38,519)	(149,501)	156,548)
Reconciliation of net income to net cash provided by (used in) operating activities	(3,638,638)	23,582)	(725,964)	11,090)	(114,642)	190,636)
Net cash provided by (used in) operating activities	(2,485,972)	663,580)	(440,801)	122,955)	(30,334)	262,554)
Purchases of property, plant and equipment	(124,279)	(36,793)	(45,182)	(58,016)	(44,338)	(24,849)
Investment in equity securities	(69,673)	(500)	(1,100)	—)	—)	—)
Acquisition, net of cash acquired	(296)	(2,193)	—)	—)	—)	—)
Proceeds from sale of investment in a privately-held company	—)	—)	—)	—)	750)	—)
Net cash used in investing activities	(194,248)	(39,486)	(46,282)	(58,016)	(43,588)	(24,849)
Proceeds from lines of credit and term loans	2,156,529)	1,093,860)	1,153,317)	127,059)	164,791)	41,760)
Repayment of lines of credit and term loans	(1,967,545)	(1,394,391)	(640,695)	(60,629)	(159,191)	(67,700)
Net borrowings (repayment) on asset-backed revolving line of credit, net of costs	—)	—)	—)	—)	(1,116)	(65,945)
Payment of other fees for debt financing	—)	—)	(592)	(561)	(650)	(625)
Proceeds from exercise of stock options	29,453)	30,466)	20,994)	28,387)	28,343)	—)
Payment of withholding tax on vesting of restricted stock units	(174,354)	(28,197)	(10,081)	(8,721)	(8,243)	(3,051)
Stock repurchases	—)	(149,998)	—)	(130,000)	—)	—)
Issuances of common stock in public offerings, net of issuance costs	2,313,983)	—)	—)	—)	—)	—)
Proceeds from issuance of 2029 Convertible Notes, net of issuance costs	1,695,768)	—)	—)	—)	—)	—)
Purchase of capped calls	(142,140)	—)	—)	—)	—)	—)
Other	30)	(33)	(72)	25)	(138)	(267)
Net cash provided by (used in) financing activities	3,911,724)	(448,293)	522,871)	(44,440)	23,796)	(95,828)
Effect of exchange rate fluctuations on cash	(2,191)	(3,400)	(678)	560)	376)	(119)
Net increase (decrease) in cash, cash equivalents and restricted cash	1,229,313)	172,401)	35,110)	21,059)	(49,750)	141,758)
Cash, cash equivalents and restricted cash at beginning of year	440,960)	268,559)	233,449)	212,390)	262,140)	120,382)
Cash, cash equivalents and restricted cash at end of year	1,670,273)	440,960)	268,559)	233,449)	212,390)	262,140)

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

Net Income

There is a strong upward trend in net income over the periods, increasing steadily from $71.9 million in 2019 to $1.15 billion in 2024, indicating significant profitability growth.

Depreciation, Amortization, and Non-cash Interest

This expense shows a gradual increase from $24.2 million in 2019 to $41.0 million in 2024, reflecting ongoing asset base expansion or changing amortization schedules.

Stock-based Compensation Expense

The expense remained relatively stable around $20 million to $54 million from 2019 to 2023, but surged dramatically to $231.5 million in 2024, suggesting a major increase in stock option grants or valuation adjustments.

Impairment of Investments

This item appears only in 2019 with $2.7 million, with no subsequent impairments reported, implying no recognized investment losses in later periods.

Share of Income/Loss from Equity Investee

Fluctuations are observed, with losses in most years except 2019 and 2022, reflecting variability in equity investments' performance or accounting results.

Unrealized Foreign Currency Exchange (Gain) Loss

Volatility is evident, shifting from minor gains/losses to significant negative values in 2022 and 2023, indicating foreign exchange exposure impacts.

Deferred Income Taxes, Net

Marked decline from -$17.1 million in 2019 to -$168.5 million in 2024, signifying increasing deferred tax liabilities or negative tax positions.

Other Operating Items

Generally minor variations, with occasional fluctuations such as increase to $12.3 million in 2024, indicating miscellaneous adjustments impacting operations.

Working Capital Components

Accounts Receivable, Net: Shows a transition from positive $92.1 million in 2019 to a substantial negative $1.59 billion in 2024, suggesting a shift in working capital management or accounting presentation.

Inventories: Exhibit irregular fluctuations including sharp declines and a steep drop to negative $2.9 billion in 2024, indicating inventory valuation adjustments or accounting changes.

Prepaid Expenses and Other Assets: Volatile with negative values in multiple years, reflecting inconsistent advance payments or asset reclassifications.

Accounts Payable: From a negative balance in 2019 to a large positive $679.2 million in 2024, indicating changes in supplier payment terms or liabilities recognition.

Accrued Liabilities and Income Taxes Payable: Both show significant variation including negative and positive swings, illustrating variable short-term liabilities and tax obligations over time.

Deferred Revenue: Mostly positive but fluctuating, ending at $111.9 million in 2024, indicating ongoing advance receipts or contract liabilities.

Other Long-term Liabilities: Generally negative but turning positive in 2024, suggesting reclassification or resolution of long-term obligations.

Changes in Operating Assets and Liabilities

This component shows considerable volatility with a massive negative swing to -$3.75 billion in 2024, reflecting substantial working capital movements impacting cash flow.

Operating Cash Flow

Net cash provided or used in operating activities fluctuates widely, with positive cash flow in 2019, 2021, and 2023, but significant negative flows in 2020, 2022, and sharply negative in 2024 at -$2.49 billion, indicating operational cash flow pressures.

Investing Activities

Capital expenditures have steadily increased to $124.3 million outflow in 2024, while investments and acquisitions remain relatively small. Net cash used in investing activities remains negative but stable, ending at -$194.2 million in 2024.

Financing Activities

There is notable debt activity, with proceeds from borrowings rising sharply in 2022 and 2024, alongside large repayments, reflecting active debt management and possibly refinancing efforts.

Proceeds from stock option exercises have been consistent, though payment of withholding taxes has increased dramatically in 2024 to $174 million, likely related to increased stock-based compensation.

Significant issuances of common stock ($2.31 billion) and convertible notes ($1.70 billion) in 2024 indicate substantial capital raising.

Stock repurchases occurred in 2021 and 2023 but not in 2024. Overall, net cash from financing swings from negative and positive values, ending with a large positive inflow of $3.91 billion in 2024.

Effect of Exchange Rate Fluctuations on Cash

Minor impact overall, with occasional gains and losses, leading to a small negative effect in recent years.

Cash Position

Cash and equivalents exhibit growth over the periods, increasing from $262 million in 2019 to $1.67 billion in 2024, supported by financings despite operational cash flow challenges.

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Super Micro Computer Inc. (NASDAQ:SMCI)

Cash Flow Statement