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The tension inside Super Micro Computer's order book is not about demand. Mizuho analysts note that the company's $60 billion backlog will likely necessitate additional financing to convert into shipped product.
The orders are there; the question is how the company pays to fill them. What the backlog implies for capital A backlog of $60 billion is a stack of production commitments, not a balance-sheet abstraction.
Physical goods have to be sourced, assembled, and shipped before revenue arrives.
The working capital cycle in high-volume manufacturing runs long: money goes out for components and labor well before customers settle their invoices.
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