Microsoft Corporation (MSFT)

Days of inventory on hand (DOH)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Inventory turnover		93.64	59.48	26.35	16.74	19.81
DOH	days	3.90	6.14	13.85	21.80	18.42

June 30, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 93.64
= 3.90

The analysis of Microsoft Corporation’s days of inventory on hand (DOH) over the specified periods reveals notable fluctuations and trends. As of June 30, 2021, the DOH was approximately 18.42 days, indicating the company held inventory for roughly 18.4 days before it was sold or used. This figure increased to approximately 21.80 days by June 30, 2022, suggesting a temporary elongation in inventory holding periods, possibly due to strategic stocking, supply chain factors, or shifts in sales cycles.

However, from June 30, 2023 onwards, there was a significant reduction in the DOH. By June 30, 2023, the metric decreased markedly to 13.85 days, implying that Microsoft was able to move its inventory more swiftly, possibly reflecting improved inventory management, increased sales velocity, or a shift in product mix towards faster-turning items.

This downward trend accelerated further in the subsequent periods. As of June 30, 2024, the DOH dramatically decreased to 6.14 days, and continued its decline to approximately 3.90 days as of June 30, 2025. Such reductions indicate a substantial improvement in inventory turnover, suggesting the company’s enhanced efficiency in inventory management, reduced holding costs, or a strategic shift towards leaner inventory levels.

Overall, the historical data demonstrates a trend of decreasing inventory holding periods, culminating in significantly shorter DOH in the most recent fiscal year. This pattern reflects positively on Microsoft's operational efficiency, potentially leading to improved cash flows and reduced inventory-related risks.