Super Micro Computer has a quick ratio of 1.19. It generally indicates good short-term financial strength.
The historical rank and industry rank for Super Micro Computer's Quick Ratio or its related term are showing as below:
SMCI'
s Quick Ratio Range Over the Past 10 Years
Min: 0.73 Med: 1.04 Max: 1.34
Current: 1.19
During the past 13 years, Super Micro Computer's highest Quick Ratio was 1.34. The lowest was 0.73. And the median was 1.04.
SMCI's Quick Ratio is ranked worse than 62.56% of 2484
companies
in the Hardware industry
Industry Median: 1.475
vs SMCI: 1.19
Super Micro Computer Quick Ratio Historical Data
The historical data trend for Super Micro Computer's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Super Micro Computer's Quick Ratio
For the Computer Hardware subindustry, Super Micro Computer's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Super Micro Computer's Quick Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Super Micro Computer's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Super Micro Computer's Quick Ratio falls into.
Super Micro Computer Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Super Micro Computer's Quick Ratio for the fiscal year that ended in Jun. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Super Micro Computer (NAS:SMCI) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Super Micro Computer Quick Ratio Related Terms
Thank you for viewing the detailed overview of Super Micro Computer's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Super Micro Computer (Super Micro Computer) Business Description
Super Micro Computer Inc provides high-performance server technology services to cloud computing, data center, Big Data, high-performance computing, and "Internet of Things" embedded markets. Its solutions include server, storage, blade and workstations to full racks, networking devices, and server management software. The firm follows a modular architectural approach, which provides flexibility to deliver customized solutions. The Company operates in one operating segment that develops and provides high-performance server solutions based upon an innovative, modular and open-standard architecture. More than half of the firm's revenue is generated in the United States, with the rest coming from Europe, Asia, and other regions.
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