Stock Analysis on Net

Super Micro Computer Inc. (NASDAQ:SMCI) 

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Super Micro Computer Inc., short-term (operating) activity ratios

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Turnover Ratios
Inventory turnover 4.04 2.84 2.90 3.30 4.48 3.43
Receivables turnover 6.20 6.23 7.67 8.27 8.89 7.44
Payables turnover 7.52 6.71 4.94 6.74 8.34 5.56
Working capital turnover 3.95 3.89 3.96 3.77 4.29 4.67
Average No. Days
Average inventory processing period 90 128 126 110 81 106
Add: Average receivable collection period 59 59 48 44 41 49
Operating cycle 149 187 174 154 122 155
Less: Average payables payment period 49 54 74 54 44 66
Cash conversion cycle 100 133 100 100 78 89

Based on: 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), 10-K (reporting date: 2018-06-30).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Super Micro Computer Inc. inventory turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Super Micro Computer Inc. receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Super Micro Computer Inc. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Super Micro Computer Inc. working capital turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Super Micro Computer Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Super Micro Computer Inc. operating cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Super Micro Computer Inc. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.

Inventory Turnover

Super Micro Computer Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data (US$ in thousands)
Cost of sales 5,840,470 4,396,098 3,022,884 2,813,071 3,004,838 2,930,498
Inventories 1,445,564 1,545,606 1,040,964 851,498 670,188 853,252
Short-term Activity Ratio
Inventory turnover1 4.04 2.84 2.90 3.30 4.48 3.43
Benchmarks
Inventory Turnover, Competitors2
Apple Inc. 33.82 45.20 32.37 41.75 39.40
Arista Networks Inc. 1.15 1.32 1.64 1.74 3.55
Cisco Systems Inc. 5.83 7.52 11.50 13.74 13.91
Inventory Turnover, Sector
Technology Hardware & Equipment 18.21 24.06 23.91 28.59 28.88
Inventory Turnover, Industry
Information Technology 7.40 8.17 9.78 10.43 10.62

Based on: 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), 10-K (reporting date: 2018-06-30).

1 2023 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 5,840,470 ÷ 1,445,564 = 4.04

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Super Micro Computer Inc. inventory turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Receivables Turnover

Super Micro Computer Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data (US$ in thousands)
Net sales 7,123,482 5,196,099 3,557,422 3,339,281 3,500,360 3,360,492
Accounts receivable, net of allowance for credit losses 1,148,259 834,513 463,834 403,745 393,624 451,393
Short-term Activity Ratio
Receivables turnover1 6.20 6.23 7.67 8.27 8.89 7.44
Benchmarks
Receivables Turnover, Competitors2
Apple Inc. 12.99 13.99 13.92 17.03 11.35
Arista Networks Inc. 5.72 4.75 5.71 5.95 6.15
Cisco Systems Inc. 9.74 7.79 8.64 9.01 9.45
Receivables Turnover, Sector
Technology Hardware & Equipment 12.08 12.46 12.78 14.72 10.89
Receivables Turnover, Industry
Information Technology 7.37 7.42 7.55 8.00 7.59

Based on: 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), 10-K (reporting date: 2018-06-30).

1 2023 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, net of allowance for credit losses
= 7,123,482 ÷ 1,148,259 = 6.20

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Super Micro Computer Inc. receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Payables Turnover

Super Micro Computer Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data (US$ in thousands)
Cost of sales 5,840,470 4,396,098 3,022,884 2,813,071 3,004,838 2,930,498
Accounts payable 776,831 655,403 612,336 417,673 360,470 527,158
Short-term Activity Ratio
Payables turnover1 7.52 6.71 4.94 6.74 8.34 5.56
Benchmarks
Payables Turnover, Competitors2
Apple Inc. 3.42 3.49 3.89 4.01 3.50
Arista Networks Inc. 5.13 7.33 5.27 6.23 9.41
Cisco Systems Inc. 9.19 8.47 7.59 7.94 9.34
Payables Turnover, Sector
Technology Hardware & Equipment 3.68 3.70 4.06 4.23 3.79
Payables Turnover, Industry
Information Technology 4.87 4.54 4.99 5.35 5.27

Based on: 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), 10-K (reporting date: 2018-06-30).

1 2023 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 5,840,470 ÷ 776,831 = 7.52

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Super Micro Computer Inc. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023.

Working Capital Turnover

Super Micro Computer Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data (US$ in thousands)
Current assets 3,179,426 2,806,315 1,867,259 1,592,761 1,421,771 1,530,878
Less: Current liabilities 1,374,652 1,470,024 968,896 707,635 605,969 811,557
Working capital 1,804,774 1,336,291 898,363 885,126 815,802 719,321
 
Net sales 7,123,482 5,196,099 3,557,422 3,339,281 3,500,360 3,360,492
Short-term Activity Ratio
Working capital turnover1 3.95 3.89 3.96 3.77 4.29 4.67
Benchmarks
Working Capital Turnover, Competitors2
Apple Inc. 39.10 7.16 4.56
Arista Networks Inc. 0.90 1.03 0.80 0.76 0.84
Cisco Systems Inc. 4.73 4.65 3.88 2.70 3.24
Working Capital Turnover, Sector
Technology Hardware & Equipment 24.39 15.74 5.44 4.14
Working Capital Turnover, Industry
Information Technology 5.24 5.71 3.86 2.86 3.06

Based on: 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), 10-K (reporting date: 2018-06-30).

1 2023 Calculation
Working capital turnover = Net sales ÷ Working capital
= 7,123,482 ÷ 1,804,774 = 3.95

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Super Micro Computer Inc. working capital turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Average Inventory Processing Period

Super Micro Computer Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data
Inventory turnover 4.04 2.84 2.90 3.30 4.48 3.43
Short-term Activity Ratio (no. days)
Average inventory processing period1 90 128 126 110 81 106
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Apple Inc. 11 8 11 9 9
Arista Networks Inc. 318 276 222 210 103
Cisco Systems Inc. 63 49 32 27 26
Average Inventory Processing Period, Sector
Technology Hardware & Equipment 20 15 15 13 13
Average Inventory Processing Period, Industry
Information Technology 49 45 37 35 34

Based on: 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), 10-K (reporting date: 2018-06-30).

1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 4.04 = 90

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Super Micro Computer Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Average Receivable Collection Period

Super Micro Computer Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data
Receivables turnover 6.20 6.23 7.67 8.27 8.89 7.44
Short-term Activity Ratio (no. days)
Average receivable collection period1 59 59 48 44 41 49
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Apple Inc. 28 26 26 21 32
Arista Networks Inc. 64 77 64 61 59
Cisco Systems Inc. 37 47 42 41 39
Average Receivable Collection Period, Sector
Technology Hardware & Equipment 30 29 29 25 34
Average Receivable Collection Period, Industry
Information Technology 50 49 48 46 48

Based on: 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), 10-K (reporting date: 2018-06-30).

1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.20 = 59

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Super Micro Computer Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data
Average inventory processing period 90 128 126 110 81 106
Average receivable collection period 59 59 48 44 41 49
Short-term Activity Ratio
Operating cycle1 149 187 174 154 122 155
Benchmarks
Operating Cycle, Competitors2
Apple Inc. 39 34 37 30 41
Arista Networks Inc. 382 353 286 271 162
Cisco Systems Inc. 100 96 74 68 65
Operating Cycle, Sector
Technology Hardware & Equipment 50 44 44 38 47
Operating Cycle, Industry
Information Technology 99 94 85 81 82

Based on: 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), 10-K (reporting date: 2018-06-30).

1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 90 + 59 = 149

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Super Micro Computer Inc. operating cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Average Payables Payment Period

Super Micro Computer Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data
Payables turnover 7.52 6.71 4.94 6.74 8.34 5.56
Short-term Activity Ratio (no. days)
Average payables payment period1 49 54 74 54 44 66
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Apple Inc. 107 105 94 91 104
Arista Networks Inc. 71 50 69 59 39
Cisco Systems Inc. 40 43 48 46 39
Average Payables Payment Period, Sector
Technology Hardware & Equipment 99 99 90 86 96
Average Payables Payment Period, Industry
Information Technology 75 80 73 68 69

Based on: 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), 10-K (reporting date: 2018-06-30).

1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.52 = 49

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Super Micro Computer Inc. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023.

Cash Conversion Cycle

Super Micro Computer Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data
Average inventory processing period 90 128 126 110 81 106
Average receivable collection period 59 59 48 44 41 49
Average payables payment period 49 54 74 54 44 66
Short-term Activity Ratio
Cash conversion cycle1 100 133 100 100 78 89
Benchmarks
Cash Conversion Cycle, Competitors2
Apple Inc. -68 -71 -57 -61 -63
Arista Networks Inc. 311 303 217 212 123
Cisco Systems Inc. 60 53 26 22 26
Cash Conversion Cycle, Sector
Technology Hardware & Equipment -49 -55 -46 -48 -49
Cash Conversion Cycle, Industry
Information Technology 24 14 12 13 13

Based on: 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), 10-K (reporting date: 2018-06-30).

1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 90 + 5949 = 100

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.