Stock Analysis on Net
Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

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Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

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Short-term Activity Ratios (Summary)

Microsoft Corp., short-term (operating) activity ratios

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Turnover Ratios
Inventory turnover
Receivables turnover
Payables turnover
Working capital turnover
Average No. Days
Average inventory processing period
Add: Average receivable collection period
Operating cycle
Less: Average payables payment period
Cash conversion cycle

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Microsoft Corp. inventory turnover ratio improved from 2022 to 2023 and from 2023 to 2024.
Receivables turnover An activity ratio equal to revenue divided by receivables. Microsoft Corp. receivables turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Microsoft Corp. payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Microsoft Corp. working capital turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 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. Microsoft Corp. number of days of inventory outstanding improved from 2022 to 2023 and from 2023 to 2024.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Microsoft Corp. number of days of receivables outstanding deteriorated from 2022 to 2023 and from 2023 to 2024.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Microsoft Corp. operating cycle improved from 2022 to 2023 and from 2023 to 2024.
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. Microsoft Corp. number of days of payables outstanding decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
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. Microsoft Corp. cash conversion cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Inventory Turnover

Microsoft Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data (US$ in millions)
Cost of revenue
Inventories
Short-term Activity Ratio
Inventory turnover1
Benchmarks
Inventory Turnover, Competitors2
Cadence Design Systems Inc.
International Business Machines Corp.
Oracle Corp.
Synopsys Inc.
Inventory Turnover, Sector
Software & Services
Inventory Turnover, Industry
Information Technology

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).

1 2024 Calculation
Inventory turnover = Cost of revenue ÷ Inventories
= ÷ =

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. Microsoft Corp. inventory turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

Receivables Turnover

Microsoft Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data (US$ in millions)
Revenue
Accounts receivable, net of allowance for doubtful accounts
Short-term Activity Ratio
Receivables turnover1
Benchmarks
Receivables Turnover, Competitors2
Accenture PLC
Adobe Inc.
Autodesk Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
International Business Machines Corp.
Intuit Inc.
Oracle Corp.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Receivables Turnover, Sector
Software & Services
Receivables Turnover, Industry
Information Technology

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).

1 2024 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net of allowance for doubtful accounts
= ÷ =

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. Microsoft Corp. receivables turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Payables Turnover

Microsoft Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data (US$ in millions)
Cost of revenue
Accounts payable
Short-term Activity Ratio
Payables turnover1
Benchmarks
Payables Turnover, Competitors2
Accenture PLC
Adobe Inc.
Autodesk Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
International Business Machines Corp.
Intuit Inc.
Oracle Corp.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Payables Turnover, Sector
Software & Services
Payables Turnover, Industry
Information Technology

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).

1 2024 Calculation
Payables turnover = Cost of revenue ÷ Accounts payable
= ÷ =

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. Microsoft Corp. payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Working Capital Turnover

Microsoft Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data (US$ in millions)
Current assets
Less: Current liabilities
Working capital
 
Revenue
Short-term Activity Ratio
Working capital turnover1
Benchmarks
Working Capital Turnover, Competitors2
Accenture PLC
Adobe Inc.
Autodesk Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
International Business Machines Corp.
Intuit Inc.
Oracle Corp.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Working Capital Turnover, Sector
Software & Services
Working Capital Turnover, Industry
Information Technology

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).

1 2024 Calculation
Working capital turnover = Revenue ÷ Working capital
= ÷ =

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. Microsoft Corp. working capital turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Average Inventory Processing Period

Microsoft Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data
Inventory turnover
Short-term Activity Ratio (no. days)
Average inventory processing period1
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Cadence Design Systems Inc.
International Business Machines Corp.
Oracle Corp.
Synopsys Inc.
Average Inventory Processing Period, Sector
Software & Services
Average Inventory Processing Period, Industry
Information Technology

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).

1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =

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. Microsoft Corp. number of days of inventory outstanding improved from 2022 to 2023 and from 2023 to 2024.

Average Receivable Collection Period

Microsoft Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data
Receivables turnover
Short-term Activity Ratio (no. days)
Average receivable collection period1
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Accenture PLC
Adobe Inc.
Autodesk Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
International Business Machines Corp.
Intuit Inc.
Oracle Corp.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Average Receivable Collection Period, Sector
Software & Services
Average Receivable Collection Period, Industry
Information Technology

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).

1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =

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. Microsoft Corp. number of days of receivables outstanding deteriorated from 2022 to 2023 and from 2023 to 2024.

Operating Cycle

Microsoft Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data
Average inventory processing period
Average receivable collection period
Short-term Activity Ratio
Operating cycle1
Benchmarks
Operating Cycle, Competitors2
Cadence Design Systems Inc.
International Business Machines Corp.
Oracle Corp.
Synopsys Inc.
Operating Cycle, Sector
Software & Services
Operating Cycle, Industry
Information Technology

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).

1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =

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. Microsoft Corp. operating cycle improved from 2022 to 2023 and from 2023 to 2024.

Average Payables Payment Period

Microsoft Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data
Payables turnover
Short-term Activity Ratio (no. days)
Average payables payment period1
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Accenture PLC
Adobe Inc.
Autodesk Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
International Business Machines Corp.
Intuit Inc.
Oracle Corp.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Average Payables Payment Period, Sector
Software & Services
Average Payables Payment Period, Industry
Information Technology

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).

1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =

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. Microsoft Corp. number of days of payables outstanding decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Cash Conversion Cycle

Microsoft Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data
Average inventory processing period
Average receivable collection period
Average payables payment period
Short-term Activity Ratio
Cash conversion cycle1
Benchmarks
Cash Conversion Cycle, Competitors2
Cadence Design Systems Inc.
International Business Machines Corp.
Oracle Corp.
Synopsys Inc.
Cash Conversion Cycle, Sector
Software & Services
Cash Conversion Cycle, Industry
Information Technology

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).

1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =

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. Microsoft Corp. cash conversion cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.