Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Super Micro Computer Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
The analysis of the financial ratios over the periods under review reveals several noteworthy trends regarding operational efficiency and working capital management.
- Inventory Turnover
- The inventory turnover ratio demonstrates moderate fluctuations with a general pattern of decline from around 3.59 to a low near 2.41, followed by recovery to a peak exceeding 5.0 before tapering slightly in the most recent periods. This suggests variability in inventory management efficiency, with periods of slower inventory movement interspersed with improved turnover, particularly notable in late 2024.
- Receivables Turnover
- Receivables turnover shows a declining trend initially, dropping from over 10 to near 5.5, indicating slower collections. However, a partial recovery is evident toward the end of the timeline, with ratios improving to approaches above 9. This pattern implies challenges in collecting receivables consistently throughout the periods, but with some recent improvements in collection efficiency.
- Payables Turnover
- Payables turnover ratios exhibit high volatility, starting at 8.33 and dramatically peaking as high as 33.19 before declining again to approximately 15.24. The exceptionally high peaks suggest periods of rapid payment to suppliers, while lows indicate stretched payment periods. This inconsistency reflects variable supplier payment strategies, potentially influenced by liquidity considerations or supplier relationship management.
- Working Capital Turnover
- Working capital turnover generally declines over time, decreasing from approximately 3.7 down to below 2.3 in the latter periods. This decreasing trend points to less efficient usage of working capital to generate sales, signaling potential issues in managing current assets and liabilities effectively.
- Average Inventory Processing Period
- The number of days inventory is held shows a marked increase from about 102 days to as high as 152 days, before declining sharply to around 72-87 days near the end. This reflects periods of inventory accumulation or slower sales, followed by efforts to reduce inventory holding times substantially in the most recent periods, correlating to fluctuations observed in inventory turnover.
- Average Receivable Collection Period
- The average collection period lengthens initially from the mid-30s (days) to nearly 67 days, indicating slower cash inflows from customers. In later periods, it fluctuates but shows tendencies towards shorter collection periods, returning closer to earlier levels around 37 days. These dynamics highlight shifts in credit policy or customer payment behavior.
- Operating Cycle
- The operating cycle extends steadily from about 138 days to a peak of over 200 days mid-period, then declines to near 120 days toward the end. This cycle encompasses inventory and receivables periods, and its variability indicates changing durations to convert inventory into cash, with notable lengthening suggesting operational inefficiencies mid-term and subsequent improvements.
- Average Payables Payment Period
- The payables payment period fluctuates irregularly, rising from 44 days up to 74 days, then dropping significantly to as low as 11-12 days, before a moderate increase to 24 days near the end. These swings imply inconsistent payment terms or strategies, possibly reflecting cash flow management practices.
- Cash Conversion Cycle
- The cash conversion cycle mirrors these trends, rising from around 94 days to a peak of 163 days, then gradually reducing back to approximately 100 days. This indicates an extended duration between cash outflows and inflows during mid-periods, with recent efforts appearing focused on improving liquidity by shortening this cycle.
In summary, the overall financial ratios indicate periods of operational stress with lengthening inventory and receivable cycles, along with inconsistent supplier payment patterns leading to higher cash conversion cycles mid-term. More recently, there is evidence of improvement in managing inventory levels, collection periods, and cash conversion efficiency, reflecting a strategic focus on tightening working capital management and enhancing liquidity.
Turnover Ratios
Average No. Days
Inventory Turnover
Super Micro Computer Inc., inventory turnover calculation (quarterly data)
| Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Cost of sales | 5,212,809) | 4,159,695) | 5,007,940) | 5,161,676) | 4,808,560) | 3,252,698) | 3,100,602) | 1,765,981) | 1,813,165) | 1,056,937) | 1,465,773) | 1,504,595) | 1,348,116) | 1,144,715) | 1,008,676) | 894,591) | 923,474) | 772,864) | 694,211) | 632,335) | ||||||
| Inventories | 4,680,375) | 3,870,243) | 3,596,145) | 4,930,623) | 4,333,029) | 4,124,587) | 2,466,997) | 2,052,805) | 1,445,564) | 1,540,419) | 1,421,817) | 1,736,055) | 1,545,606) | 1,588,542) | 1,393,672) | 1,184,573) | 1,040,964) | 903,903) | 807,431) | 773,856) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Inventory turnover1 | 4.18 | 4.94 | 5.07 | 3.31 | 2.98 | 2.41 | 3.14 | 2.97 | 4.04 | 3.49 | 3.84 | 2.88 | 2.84 | 2.50 | 2.58 | 2.77 | 2.90 | 3.18 | 3.39 | 3.59 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||
| Apple Inc. | 38.64 | 36.77 | 34.08 | 30.63 | 28.87 | 33.80 | 33.32 | 32.57 | 33.82 | 29.54 | 29.24 | 32.36 | 45.20 | 40.43 | 40.07 | 36.69 | 32.37 | 39.55 | 37.48 | 36.21 | ||||||
| Arista Networks Inc. | — | — | 1.38 | 1.36 | 1.37 | 1.33 | 1.23 | 1.11 | 1.15 | 1.16 | 1.12 | 1.15 | 1.32 | 1.36 | 1.53 | 1.65 | 1.64 | 1.74 | 1.75 | 1.85 | ||||||
| Cisco Systems Inc. | 6.28 | 6.83 | 6.45 | 5.91 | 5.63 | 6.28 | 6.38 | 6.30 | 5.83 | 6.01 | 6.45 | 7.41 | 7.52 | 8.52 | 9.19 | 10.06 | 11.50 | 11.15 | 11.98 | 13.25 | ||||||
| Dell Technologies Inc. | 11.07 | 10.99 | 11.95 | 14.44 | 18.65 | 20.66 | 20.02 | 18.72 | 16.67 | 13.40 | 14.38 | 13.11 | 13.45 | 13.76 | 16.63 | 17.53 | 19.05 | 18.62 | 17.40 | 17.47 | ||||||
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q4 2025 Calculation
Inventory turnover
= (Cost of salesQ4 2025
+ Cost of salesQ3 2025
+ Cost of salesQ2 2025
+ Cost of salesQ1 2025)
÷ Inventories
= (5,212,809 + 4,159,695 + 5,007,940 + 5,161,676)
÷ 4,680,375 = 4.18
2 Click competitor name to see calculations.
- Cost of Sales
- The cost of sales demonstrates an overall increasing trend over the periods analyzed. Starting at approximately 632 million USD in September 2020, it rises steadily with notable spikes towards the end of 2023 and into 2024. The highest costs are observed in mid-2024, peaking around 5.2 billion USD. Some fluctuations are apparent, with a decline seen in early 2023 before resuming growth. This pattern indicates increased production or procurement expenses, possibly due to expanded operations or higher input costs.
- Inventories
- Inventory levels also show a consistent upward trajectory from around 774 million USD in September 2020 to highs exceeding 4.9 billion USD in late 2024. There are some periods of temporary decline, such as late 2022 and mid-2024, but the general pattern is one of accumulation. This suggests the company is building stock, which might support increased sales or production capacity. The substantial inventory growth especially after 2022 indicates an aggressive approach to inventory management or anticipation of future demand.
- Inventory Turnover Ratio
- The inventory turnover ratio generally declines from 3.59 in late 2020 to lower values around 2.5–3.0 during 2021 and 2022, reflecting slower inventory movement relative to the cost of goods sold during that period. However, from late 2022 onwards, there is an improvement with turnover ratios rising above 4.0 and even reaching over 5.0 by early 2025. This improvement in turnover suggests enhanced efficiency in managing inventory relative to sales, indicating faster conversion of inventory into revenue. The spike in turnover could also reflect a reduction in inventory levels combined with sustained or growing sales volumes.
- Overall Insights
- The financial data indicates a pattern of expansion in cost of sales and inventory levels, aligned with a strategic buildup of inventory. Despite the increase in inventory, the improving turnover ratios in the later periods imply gains in operational efficiency and better inventory management. This suggests that while the company has scaled up its operations significantly, it has also enhanced its ability to convert inventory into sales efficiently, reducing the risk of overstock conditions. These trends collectively point to a growth-focused strategy that balances volume increases with improved inventory control.
Receivables Turnover
Super Micro Computer Inc., receivables turnover calculation (quarterly data)
| Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Net sales | 5,756,911) | 4,599,913) | 5,677,962) | 5,937,256) | 5,354,589) | 3,850,066) | 3,664,924) | 2,119,672) | 2,184,861) | 1,283,296) | 1,803,195) | 1,852,130) | 1,635,460) | 1,355,490) | 1,172,419) | 1,032,730) | 1,068,985) | 895,881) | 830,306) | 762,250) | ||||||
| Accounts receivable, net of allowance for credit losses | 2,203,942) | 2,642,556) | 3,059,510) | 2,731,740) | 2,737,331) | 1,650,153) | 1,502,971) | 845,729) | 1,148,259) | 672,055) | 768,167) | 736,312) | 834,513) | 679,785) | 497,431) | 458,076) | 463,834) | 407,365) | 323,021) | 322,845) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Receivables turnover1 | 9.97 | 8.16 | 6.80 | 6.88 | 5.48 | 7.16 | 6.16 | 8.74 | 6.20 | 9.78 | 8.65 | 8.17 | 6.23 | 6.81 | 8.38 | 8.36 | 7.67 | 8.31 | 10.10 | 10.23 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Apple Inc. | 10.46 | 14.83 | 15.32 | 13.35 | 11.70 | 16.92 | 17.48 | 16.63 | 12.99 | 19.64 | 21.47 | 16.32 | 13.99 | 17.77 | 18.55 | 12.52 | 13.92 | 19.87 | 17.59 | 10.85 | ||||||
| Arista Networks Inc. | — | — | 4.90 | 5.18 | 6.14 | 5.85 | 5.14 | 5.58 | 5.72 | 6.71 | 6.75 | 5.63 | 4.75 | 6.03 | 5.98 | 4.87 | 5.71 | 7.01 | 7.22 | 6.47 | ||||||
| Cisco Systems Inc. | 8.45 | 10.54 | 9.56 | 11.89 | 8.05 | 10.80 | 11.72 | 12.01 | 9.74 | 10.76 | 10.15 | 9.61 | 7.79 | 8.92 | 8.59 | 9.57 | 8.64 | 11.04 | 11.15 | 12.08 | ||||||
| Dell Technologies Inc. | 9.28 | 8.40 | 8.06 | 10.48 | 9.46 | 9.38 | 9.04 | 10.33 | 8.20 | 9.21 | 7.96 | 8.85 | 7.84 | 7.01 | 7.46 | 8.70 | 7.37 | 8.10 | 7.86 | 8.53 | ||||||
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q4 2025 Calculation
Receivables turnover
= (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
÷ Accounts receivable, net of allowance for credit losses
= (5,756,911 + 4,599,913 + 5,677,962 + 5,937,256)
÷ 2,203,942 = 9.97
2 Click competitor name to see calculations.
The financial data reveals notable patterns and shifts over the analyzed periods.
- Net Sales
- Net sales display a general upward trend from September 2020 through June 2025, despite some fluctuations. There is significant growth from 762,250 thousand US dollars in September 2020 to peaks exceeding 5 million thousand US dollars by mid-2025. However, certain quarters, such as the first half of 2023, show a decline or plateau before rebounding sharply in subsequent quarters. This overall ascending trajectory suggests expanding business operations or increased market demand over time.
- Accounts Receivable, Net
- The accounts receivable balance also shows an increasing trend, rising from approximately 322,845 thousand US dollars in September 2020 to over 2.7 million thousand US dollars by mid-2025. This growth parallels the rise in net sales but with more pronounced volatility. Periods such as the first half of 2023 and from late 2024 onwards show particularly sharp increases, which might reflect extended credit terms or delayed collections during these intervals.
- Receivables Turnover Ratio
- The receivables turnover ratio exhibits notable fluctuations, generally trending downward from around 10.23 in September 2020 to lower values near 5.48 by mid-2024, but recovering somewhat afterward. This ratio's decline over the periods suggests that the company is collecting receivables more slowly relative to sales as time progresses, possibly indicating a loosening of credit policies or challenges in cash collection. Some quarters witness considerable dips, pointing to intermittent inefficiencies or delays in collection processes.
In summary, the company experiences robust sales growth accompanied by expanding receivables, while the efficiency in converting receivables into cash appears to weaken before showing some improvement later. Such patterns underscore the importance of monitoring credit management practices alongside sales growth to maintain healthy cash flows.
Payables Turnover
Super Micro Computer Inc., payables turnover calculation (quarterly data)
| Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Cost of sales | 5,212,809) | 4,159,695) | 5,007,940) | 5,161,676) | 4,808,560) | 3,252,698) | 3,100,602) | 1,765,981) | 1,813,165) | 1,056,937) | 1,465,773) | 1,504,595) | 1,348,116) | 1,144,715) | 1,008,676) | 894,591) | 923,474) | 772,864) | 694,211) | 632,335) | ||||||
| Accounts payable | 1,281,977) | 643,050) | 549,323) | 1,682,968) | 1,472,381) | 1,092,445) | 1,261,533) | 1,084,058) | 776,831) | 641,839) | 559,962) | 785,025) | 655,403) | 779,561) | 695,180) | 564,628) | 612,336) | 465,012) | 396,288) | 333,359) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Payables turnover1 | 15.24 | 29.76 | 33.19 | 9.70 | 8.78 | 9.09 | 6.13 | 5.63 | 7.52 | 8.38 | 9.76 | 6.38 | 6.71 | 5.09 | 5.18 | 5.82 | 4.94 | 6.18 | 6.91 | 8.33 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Apple Inc. | 3.16 | 4.33 | 3.95 | 3.42 | 3.05 | 4.38 | 4.54 | 3.65 | 3.42 | 4.65 | 5.10 | 3.81 | 3.49 | 4.54 | 4.15 | 2.90 | 3.89 | 5.07 | 4.88 | 2.82 | ||||||
| Arista Networks Inc. | — | — | 5.23 | 6.86 | 6.59 | 8.14 | 7.63 | 10.09 | 5.13 | 8.16 | 5.95 | 5.84 | 7.33 | 5.39 | 4.74 | 5.61 | 5.27 | 7.39 | 6.54 | 6.52 | ||||||
| Cisco Systems Inc. | 7.86 | 8.55 | 9.93 | 9.31 | 8.24 | 9.53 | 11.08 | 10.11 | 9.19 | 8.55 | 8.69 | 8.53 | 8.47 | 8.31 | 9.00 | 8.15 | 7.59 | 7.22 | 9.22 | 7.53 | ||||||
| Dell Technologies Inc. | 3.57 | 3.12 | 2.95 | 3.35 | 3.48 | 3.59 | 3.59 | 4.22 | 4.28 | 3.67 | 3.34 | 3.22 | 2.92 | 2.80 | 3.05 | 3.11 | 2.99 | 3.19 | 3.21 | 3.43 | ||||||
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q4 2025 Calculation
Payables turnover
= (Cost of salesQ4 2025
+ Cost of salesQ3 2025
+ Cost of salesQ2 2025
+ Cost of salesQ1 2025)
÷ Accounts payable
= (5,212,809 + 4,159,695 + 5,007,940 + 5,161,676)
÷ 1,281,977 = 15.24
2 Click competitor name to see calculations.
- Cost of Sales
- The cost of sales exhibits a general upward trend over the observed periods, starting at approximately $632 million and rising significantly to over $5.2 billion by mid-2025. There are noticeable fluctuations in the increments, with periods of sharper increases, particularly from December 2022 onward, suggesting intensified production or procurement activity. The sizeable jump between late 2023 and mid-2025 indicates accelerated operational scale or cost pressures.
- Accounts Payable
- Accounts payable follow a somewhat volatile pattern, initially increasing from about $333 million to over $1.2 billion by late 2023. However, following this peak, the balance declines sharply in late 2024 before partially recovering towards mid-2025. The fluctuations imply changes in payment cycles or supplier negotiations, with some periods reflecting increased reliance on trade credit and others indicating accelerated payments or reduced credit terms.
- Payables Turnover Ratio
- The payables turnover ratio demonstrates significant variability over time. Early periods show a declining trend from about 8.33 to below 5, indicating slower payments relative to purchases. After mid-2021, the ratio fluctuates considerably, with sharp rises exceeding 9 and notably high spikes above 29 and 33 in late 2024. Such spikes suggest periods of rapid payables clearance or possibly reduced reliance on supplier credit. The extreme variability in later periods may reflect changes in financial strategy, liquidity management, or operational adjustments affecting payable timing.
- Overall Analysis
- The combination of rising cost of sales with fluctuating accounts payable and payables turnover ratios presents a complex operational and financial environment. Increasing cost base aligns with business growth or inflationary pressures, while variability in payables and turnover ratios indicates dynamic supplier relationships and cash management practices. The sharp increases in cost of sales and accounts payable toward the end of the timeline point to expanding scale but also potential liquidity challenges. The erratic payables turnover suggests management is actively adjusting payment terms or facing varied credit conditions.
Working Capital Turnover
Super Micro Computer Inc., working capital turnover calculation (quarterly data)
| Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Current assets | 12,301,654) | 9,513,589) | 8,667,070) | 9,851,584) | 8,931,960) | 8,063,932) | 4,842,355) | 3,570,834) | 3,179,426) | 2,715,175) | 2,649,503) | 2,879,880) | 2,806,315) | 2,678,715) | 2,293,288) | 2,036,955) | 1,867,259) | 1,639,650) | 1,544,273) | 1,479,521) | ||||||
| Less: Current liabilities | 2,344,792) | 1,428,136) | 1,357,810) | 2,871,101) | 2,345,721) | 1,717,695) | 1,992,089) | 1,604,821) | 1,374,652) | 1,092,380) | 916,940) | 1,353,355) | 1,470,024) | 1,496,155) | 1,199,579) | 1,101,479) | 968,896) | 781,996) | 672,971) | 589,688) | ||||||
| Working capital | 9,956,862) | 8,085,453) | 7,309,260) | 6,980,483) | 6,586,239) | 6,346,237) | 2,850,266) | 1,966,013) | 1,804,774) | 1,622,795) | 1,732,563) | 1,526,525) | 1,336,291) | 1,182,560) | 1,093,709) | 935,476) | 898,363) | 857,654) | 871,302) | 889,833) | ||||||
| Net sales | 5,756,911) | 4,599,913) | 5,677,962) | 5,937,256) | 5,354,589) | 3,850,066) | 3,664,924) | 2,119,672) | 2,184,861) | 1,283,296) | 1,803,195) | 1,852,130) | 1,635,460) | 1,355,490) | 1,172,419) | 1,032,730) | 1,068,985) | 895,881) | 830,306) | 762,250) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Working capital turnover1 | 2.21 | 2.67 | 2.85 | 2.69 | 2.28 | 1.86 | 3.25 | 3.76 | 3.95 | 4.05 | 3.84 | 3.94 | 3.89 | 3.91 | 3.81 | 4.09 | 3.96 | 3.95 | 3.74 | 3.71 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||
| Apple Inc. | — | — | — | — | — | — | 83.07 | 39.69 | — | — | — | — | — | — | — | 67.80 | 39.10 | 52.06 | 21.58 | 13.62 | ||||||
| Arista Networks Inc. | — | — | 0.84 | 0.81 | 0.76 | 0.78 | 0.82 | 0.85 | 0.90 | 0.96 | 1.01 | 1.04 | 1.03 | 1.04 | 1.01 | 0.85 | 0.80 | 0.76 | 0.76 | 0.77 | ||||||
| Cisco Systems Inc. | — | — | — | — | — | — | 5.08 | 4.60 | 4.73 | 4.89 | 4.72 | 4.65 | 4.65 | 4.36 | 4.74 | 3.54 | 3.88 | 3.82 | 2.89 | 3.00 | ||||||
| Dell Technologies Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q4 2025 Calculation
Working capital turnover
= (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
÷ Working capital
= (5,756,911 + 4,599,913 + 5,677,962 + 5,937,256)
÷ 9,956,862 = 2.21
2 Click competitor name to see calculations.
- Working Capital
- Working capital shows a consistent upward trend over the entire period. Starting at approximately $890 million at the end of September 2020, it increased steadily through successive quarters, reaching a peak above $2.85 billion by December 2023. Following this, there is a notable sharp rise in the first three quarters of 2024, with working capital exceeding $6 billion by March 2024 and continuing to rise, surpassing $9.9 billion by June 2025. This significant increase in working capital in recent quarters indicates a substantial buildup of current assets relative to current liabilities.
- Net Sales
- Net sales display a more volatile but generally upward pattern with some fluctuations. Initially, sales grew from around $762 million in September 2020 to reach a local high near $1.85 billion by September 2022. After this point, sales experienced a sharp decline, dropping to approximately $1.28 billion by March 2023, before rebounding to a new peak of about $3.66 billion in December 2023. Sales remained elevated and continued to grow in 2024, reaching roughly $5.56 billion by the third quarter of 2024. However, a temporary decrease is observed in the first half of 2025, with sales falling to around $4.6 billion in March 2025, before partially recovering to approximately $5.76 billion in June 2025.
- Working Capital Turnover
- The working capital turnover ratio initially remains relatively stable, fluctuating between 3.7 and 4.1 from late 2020 through early 2023, reflecting consistent efficiency in using working capital to generate sales. Starting in late 2023, this ratio declines significantly, dropping sharply to 3.25 by December 2023 and continuing downward to a low of approximately 1.86 by March 2024. This decline corresponds with the sharp increase in working capital during that period. After the trough, there is a gradual improvement, with the ratio rising to around 2.85 by December 2024 before diminishing slightly again toward mid-2025. Overall, the lower turnover ratios in the later periods suggest reduced efficiency in converting working capital into sales, likely due to the outsized growth in working capital relative to net sales.
- Summary
- The data reveals steady growth in both working capital and net sales over the medium term, with significant acceleration in working capital beginning in late 2023. Despite periodic volatility in sales figures, the general sales trajectory is upward. The working capital turnover ratio maintains stability early on but declines notably from late 2023 through early 2024, indicating less efficient use of working capital to support sales during this period of rapid asset growth. Slight recovery in efficiency is observed later, yet the ratio remains below earlier levels. This combination suggests that while the company is expanding both its resources and sales capacity, it may be facing challenges with capital utilization efficiency in the most recent quarters.
Average Inventory Processing Period
Super Micro Computer Inc., average inventory processing period calculation (quarterly data)
| Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Inventory turnover | 4.18 | 4.94 | 5.07 | 3.31 | 2.98 | 2.41 | 3.14 | 2.97 | 4.04 | 3.49 | 3.84 | 2.88 | 2.84 | 2.50 | 2.58 | 2.77 | 2.90 | 3.18 | 3.39 | 3.59 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average inventory processing period1 | 87 | 74 | 72 | 110 | 122 | 152 | 116 | 123 | 90 | 105 | 95 | 127 | 128 | 146 | 141 | 132 | 126 | 115 | 108 | 102 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||
| Apple Inc. | 9 | 10 | 11 | 12 | 13 | 11 | 11 | 11 | 11 | 12 | 12 | 11 | 8 | 9 | 9 | 10 | 11 | 9 | 10 | 10 | ||||||
| Arista Networks Inc. | — | — | 264 | 268 | 267 | 274 | 298 | 328 | 318 | 315 | 325 | 318 | 276 | 268 | 239 | 221 | 222 | 210 | 209 | 197 | ||||||
| Cisco Systems Inc. | 58 | 53 | 57 | 62 | 65 | 58 | 57 | 58 | 63 | 61 | 57 | 49 | 49 | 43 | 40 | 36 | 32 | 33 | 30 | 28 | ||||||
| Dell Technologies Inc. | 33 | 33 | 31 | 25 | 20 | 18 | 18 | 19 | 22 | 27 | 25 | 28 | 27 | 27 | 22 | 21 | 19 | 20 | 21 | 21 | ||||||
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q4 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 4.18 = 87
2 Click competitor name to see calculations.
- Inventory Turnover Ratio
- The inventory turnover ratio exhibited a declining trend from September 2020 through March 2022, dropping from 3.59 to 2.5. This decline indicates a slowdown in the frequency of inventory sales or usage during this period. Following March 2022, the ratio showed fluctuations: it increased to 3.84 by December 2022 and peaked at 4.04 in June 2023, suggesting an improvement in inventory management and faster turnover. However, a subsequent decline occurred, with the ratio decreasing to 2.41 by March 2024. From June 2024 onwards, the turnover ratio notably improved, reaching a high of 5.07 in December 2024, before slightly moderating but remaining elevated in the first half of 2025.
- Average Inventory Processing Period
- The average inventory processing period, representing the number of days inventory remains before sale or use, mirrored the inventory turnover trend but in inverse terms. The processing period lengthened steadily from 102 days in September 2020 to a peak of 146 days in March 2022, indicating slower inventory movement. After this peak, a significant reduction occurred, with days dropping sharply to 95 by December 2022 and further declining to 90 days by June 2023, reflecting enhanced efficiency in inventory turnover. Subsequently, the period increased again, reaching 152 days in March 2024, coinciding with the low points in turnover ratio. In the latter periods, the processing days shortened substantially, reaching the lowest levels of 72 to 74 days in late 2024 and early 2025, before slightly rising to 87 days in June 2025.
- Overall Insights
- The data reflect cyclical patterns in inventory management efficiency over the quarters analyzed. Periods of slower turnover and extended inventory holding times alternate with phases of accelerated inventory movement and reduced processing time. The marked improvements in turnover ratio and decrease in inventory days towards the end of the period suggest strategic changes or operational improvements leading to more effective inventory control. These patterns may indicate responsiveness to market conditions, supply chain adjustments, or shifts in sales activity influencing inventory dynamics.
Average Receivable Collection Period
Super Micro Computer Inc., average receivable collection period calculation (quarterly data)
| Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Receivables turnover | 9.97 | 8.16 | 6.80 | 6.88 | 5.48 | 7.16 | 6.16 | 8.74 | 6.20 | 9.78 | 8.65 | 8.17 | 6.23 | 6.81 | 8.38 | 8.36 | 7.67 | 8.31 | 10.10 | 10.23 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average receivable collection period1 | 37 | 45 | 54 | 53 | 67 | 51 | 59 | 42 | 59 | 37 | 42 | 45 | 59 | 54 | 44 | 44 | 48 | 44 | 36 | 36 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||
| Apple Inc. | 35 | 25 | 24 | 27 | 31 | 22 | 21 | 22 | 28 | 19 | 17 | 22 | 26 | 21 | 20 | 29 | 26 | 18 | 21 | 34 | ||||||
| Arista Networks Inc. | — | — | 75 | 70 | 59 | 62 | 71 | 65 | 64 | 54 | 54 | 65 | 77 | 61 | 61 | 75 | 64 | 52 | 51 | 56 | ||||||
| Cisco Systems Inc. | 43 | 35 | 38 | 31 | 45 | 34 | 31 | 30 | 37 | 34 | 36 | 38 | 47 | 41 | 43 | 38 | 42 | 33 | 33 | 30 | ||||||
| Dell Technologies Inc. | 39 | 43 | 45 | 35 | 39 | 39 | 40 | 35 | 45 | 40 | 46 | 41 | 47 | 52 | 49 | 42 | 50 | 45 | 46 | 43 | ||||||
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q4 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 9.97 = 37
2 Click competitor name to see calculations.
The analysis of the receivables turnover and the average receivable collection period over the presented quarterly intervals reveals notable fluctuations and cyclical patterns in the company's credit management efficiency.
- Receivables Turnover Ratio
- The receivables turnover ratio demonstrates a general decline from 10.23 in September 2020 to a low of 5.48 in June 2024, indicating a reduction in the frequency with which receivables are collected during the year. This decline suggests a weakening efficiency in collecting receivables over the period. However, toward the end of the dataset, there is a recovery visible, with the ratio rising back to 9.97 by June 2025. The trajectory shows intermittent rebounds around certain quarters (notably March 2023 and September 2023), but the overall trend is a reduction in turnover until early 2024, followed by improvement.
- Average Receivable Collection Period
- The average receivable collection period, inversely related to the turnover ratio, shows an increase from 36 days at September 2020 up to a peak of 67 days in June 2024. This elongation implies that on average, it takes longer for the company to collect its receivables during these periods, reflecting potential challenges in cash flow and working capital management. Post this peak, the collection period shortens to 37 days by June 2025, aligning with the improvement in turnover ratio, suggesting enhanced collection efficiency towards the end of the timeline. The data also indicates repeating spikes in collection days roughly every few quarters, denoting possible seasonal or cyclical factors affecting receivables management.
In summary, the financial metrics point to a period marked by declining receivables management efficiency through mid-2024, with longer collection periods and reduced turnover ratios. Towards the final quarters, there is a significant recovery, suggesting improvements implemented in credit and collection policies or market conditions aiding faster receivables conversion. The alternating patterns and fluctuations may warrant further investigation into operational or external factors influencing these intervals.
Operating Cycle
Super Micro Computer Inc., operating cycle calculation (quarterly data)
No. days
| Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Average inventory processing period | 87 | 74 | 72 | 110 | 122 | 152 | 116 | 123 | 90 | 105 | 95 | 127 | 128 | 146 | 141 | 132 | 126 | 115 | 108 | 102 | ||||||
| Average receivable collection period | 37 | 45 | 54 | 53 | 67 | 51 | 59 | 42 | 59 | 37 | 42 | 45 | 59 | 54 | 44 | 44 | 48 | 44 | 36 | 36 | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Operating cycle1 | 124 | 119 | 126 | 163 | 189 | 203 | 175 | 165 | 149 | 142 | 137 | 172 | 187 | 200 | 185 | 176 | 174 | 159 | 144 | 138 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||
| Apple Inc. | 44 | 35 | 35 | 39 | 44 | 33 | 32 | 33 | 39 | 31 | 29 | 33 | 34 | 30 | 29 | 39 | 37 | 27 | 31 | 44 | ||||||
| Arista Networks Inc. | — | — | 339 | 338 | 326 | 336 | 369 | 393 | 382 | 369 | 379 | 383 | 353 | 329 | 300 | 296 | 286 | 262 | 260 | 253 | ||||||
| Cisco Systems Inc. | 101 | 88 | 95 | 93 | 110 | 92 | 88 | 88 | 100 | 95 | 93 | 87 | 96 | 84 | 83 | 74 | 74 | 66 | 63 | 58 | ||||||
| Dell Technologies Inc. | 72 | 76 | 76 | 60 | 59 | 57 | 58 | 54 | 67 | 67 | 71 | 69 | 74 | 79 | 71 | 63 | 69 | 65 | 67 | 64 | ||||||
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q4 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 87 + 37 = 124
2 Click competitor name to see calculations.
The analysis of the average inventory processing period reveals a fluctuating trend over the observed quarters. Starting at 102 days, the period increased steadily to peak at 152 days in March 2024, indicating a lengthening time to convert inventory into sales. Subsequently, there was a notable decline to 72 days by March 2025, suggesting improved inventory management or faster turnover towards the end of the period.
The average receivable collection period shows variability throughout the timeframe. It commenced at 36 days and generally increased, reaching a maximum of 67 days in June 2024. This indicates that accounts receivable were collected more slowly during this peak. However, following this, the period decreased to 37 days by March 2025, reflecting an improvement in the efficiency of receivables collection processes.
The operating cycle, which combines inventory processing and receivable collection periods, demonstrates an overall increasing trend initially, starting from 138 days and reaching a high of 203 days in March 2024. This elongation suggests a slowing in the conversion of inventory and receivables to cash. After this peak, the operating cycle shortened significantly to 124 days by June 2025, indicating enhanced operational efficiency in managing working capital.
- Inventory Management
- The initial increase in the average inventory processing period indicates challenges or strategic decisions leading to slower inventory turnover. The sharp decline after March 2024 may reflect process improvements, inventory reductions, or changes in sales dynamics.
- Receivables Collection
- The variability in the receivable collection period suggests fluctuating customer payment behaviors or credit policies. The improvement in late periods points to possibly stricter credit controls or more effective collection activities.
- Operating Cycle
- The increasing operating cycle up to early 2024 implies a lengthening cash conversion cycle, potentially resulting in higher working capital requirements. The subsequent contraction is a positive sign of better working capital management, reducing the time between cash outflows and inflows.
Average Payables Payment Period
Super Micro Computer Inc., average payables payment period calculation (quarterly data)
| Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Payables turnover | 15.24 | 29.76 | 33.19 | 9.70 | 8.78 | 9.09 | 6.13 | 5.63 | 7.52 | 8.38 | 9.76 | 6.38 | 6.71 | 5.09 | 5.18 | 5.82 | 4.94 | 6.18 | 6.91 | 8.33 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average payables payment period1 | 24 | 12 | 11 | 38 | 42 | 40 | 60 | 65 | 49 | 44 | 37 | 57 | 54 | 72 | 70 | 63 | 74 | 59 | 53 | 44 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||
| Apple Inc. | 115 | 84 | 92 | 107 | 120 | 83 | 80 | 100 | 107 | 79 | 72 | 96 | 105 | 80 | 88 | 126 | 94 | 72 | 75 | 129 | ||||||
| Arista Networks Inc. | — | — | 70 | 53 | 55 | 45 | 48 | 36 | 71 | 45 | 61 | 62 | 50 | 68 | 77 | 65 | 69 | 49 | 56 | 56 | ||||||
| Cisco Systems Inc. | 46 | 43 | 37 | 39 | 44 | 38 | 33 | 36 | 40 | 43 | 42 | 43 | 43 | 44 | 41 | 45 | 48 | 51 | 40 | 48 | ||||||
| Dell Technologies Inc. | 102 | 117 | 124 | 109 | 105 | 102 | 102 | 86 | 85 | 99 | 109 | 113 | 125 | 130 | 120 | 117 | 122 | 114 | 114 | 107 | ||||||
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q4 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 15.24 = 24
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio exhibits notable fluctuations over the observed periods. Initially, it shows a declining trend from 8.33 to 4.94 between September 2020 and June 2021, indicating a slower rate of payments to suppliers. This ratio recovers partially and remains variable, reaching peaks of 9.76 in December 2022 and 9.09 in March 2024. A significant spike occurs in December 2024 and March 2025, with ratios of 33.19 and 29.76 respectively, suggesting a much faster payment cycle during these quarters. The final period shows a decrease to 15.24, still well above earlier levels.
- Average Payables Payment Period
- The average payables payment period generally inversely correlates with the payables turnover ratio. Starting at 44 days in September 2020, the payment period extends, peaking at 74 days in June 2021, reflecting slower payments to creditors. Afterwards, it decreases steadily, reaching a low of 37 days in December 2022, indicating quicker payments. Between September 2023 and June 2024, the period moderately fluctuates around 40 to 65 days. From September 2024 onwards, there is a sharp reduction to values as low as 11 and 12 days, coinciding with the observed spikes in payables turnover, before rising slightly to 24 days in June 2025.
- Overall Insights
- The data reveals alternating patterns of payment behavior. Early periods are characterized by lengthening payment cycles, which then shift to accelerated payment strategies in later quarters. The pronounced spikes in turnover ratio and corresponding drops in payment periods towards the end of the dataset indicate a strategic shift towards quicker settlement of payables, potentially reflecting improved liquidity or changes in supplier negotiations. These dynamics should be further explored in relation to operational cash flow and supplier relationships to understand underlying causes and implications.
Cash Conversion Cycle
Super Micro Computer Inc., cash conversion cycle calculation (quarterly data)
No. days
| Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Average inventory processing period | 87 | 74 | 72 | 110 | 122 | 152 | 116 | 123 | 90 | 105 | 95 | 127 | 128 | 146 | 141 | 132 | 126 | 115 | 108 | 102 | ||||||
| Average receivable collection period | 37 | 45 | 54 | 53 | 67 | 51 | 59 | 42 | 59 | 37 | 42 | 45 | 59 | 54 | 44 | 44 | 48 | 44 | 36 | 36 | ||||||
| Average payables payment period | 24 | 12 | 11 | 38 | 42 | 40 | 60 | 65 | 49 | 44 | 37 | 57 | 54 | 72 | 70 | 63 | 74 | 59 | 53 | 44 | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Cash conversion cycle1 | 100 | 107 | 115 | 125 | 147 | 163 | 115 | 100 | 100 | 98 | 100 | 115 | 133 | 128 | 115 | 113 | 100 | 100 | 91 | 94 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||
| Apple Inc. | -71 | -49 | -57 | -68 | -76 | -50 | -48 | -67 | -68 | -48 | -43 | -63 | -71 | -50 | -59 | -87 | -57 | -45 | -44 | -85 | ||||||
| Arista Networks Inc. | — | — | 269 | 285 | 271 | 291 | 321 | 357 | 311 | 324 | 318 | 321 | 303 | 261 | 223 | 231 | 217 | 213 | 204 | 197 | ||||||
| Cisco Systems Inc. | 55 | 45 | 58 | 54 | 66 | 54 | 55 | 52 | 60 | 52 | 51 | 44 | 53 | 40 | 42 | 29 | 26 | 15 | 23 | 10 | ||||||
| Dell Technologies Inc. | -30 | -41 | -48 | -49 | -46 | -45 | -44 | -32 | -18 | -32 | -38 | -44 | -51 | -51 | -49 | -54 | -53 | -49 | -47 | -43 | ||||||
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q4 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 87 + 37 – 24 = 100
2 Click competitor name to see calculations.
The financial data reveals several distinct trends in the company's working capital management over the analyzed quarters.
- Average Inventory Processing Period
- The inventory processing period generally increased from 102 days at the end of September 2020, reaching a peak of 152 days around March 2024. Notable fluctuations occurred in the latter part of the timeline, where the period decreased sharply to 72 days by March 2025. This suggests variability in inventory turnover efficiency, with periods of slower inventory movement followed by significant improvements.
- Average Receivable Collection Period
- The collection period demonstrated a gradual upward trend, starting at 36 days in late 2020 and peaking at 67 days in June 2024. The data shows periods of stability interspersed with increases, implying challenges in receivables collection at certain points. Towards the most recent quarter, a reduction to 37 days was observed, indicating some recovery in collecting outstanding receivables faster.
- Average Payables Payment Period
- This period fluctuated notably, beginning at 44 days in September 2020 and rising to a high of 74 days by mid-2021. It then experienced a downward trend, dropping sharply to as low as 11 days by March 2025. The shorter payment period towards the end of the timeline indicates an acceleration in the settlement of payables, potentially impacting cash outflows more rapidly.
- Cash Conversion Cycle
- The cash conversion cycle followed a generally increasing trend from 94 days in September 2020 to a peak of 163 days in March 2024, pointing to longer cash tie-up periods in working capital. After the peak, the cycle declined steadily to around 100 days by June 2025. This reduction reflects improvements in the combined management of inventory, receivables, and payables, enhancing overall liquidity efficiency.
Overall, the company exhibited fluctuations in efficiency across all components of working capital. Initial periods indicate extended inventory holding and slower receivables collection, contributing to a rising cash conversion cycle. However, the latest data shows a favorable shift with shortened inventory and receivables periods alongside a more rapid payables payment, resulting in a more optimized cash conversion cycle and potentially improved cash flow management.