Microsoft Corporation (MSFT)

Days of inventory on hand (DOH)

		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
Inventory turnover		93.64	98.47	88.10	47.92	59.48	54.62	42.63	22.24	26.35	22.77	21.81	15.10	16.74	18.27	19.09	16.09	19.81	22.53	25.21	17.25
DOH	days	3.90	3.71	4.14	7.62	6.14	6.68	8.56	16.41	13.85	16.03	16.74	24.17	21.80	19.98	19.12	22.69	18.42	16.20	14.48	21.15

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 period from September 30, 2020, to June 30, 2025, reveals a noticeable downward trend in inventory holdings. Initially, at the end of September 2020, the DOH stood at approximately 21.15 days, indicating that, on average, inventory remained in stock for around three weeks. Throughout the subsequent quarters, the DOH exhibited fluctuations, peaking at approximately 24.17 days as of September 30, 2022, and dipping at various points.

Starting from the third quarter of 2023, the company demonstrated a consistent decrease in inventory days, reaching a low of approximately 4.14 days as of December 31, 2024. This declining trend persists into the first half of 2025, with the DOH recorded at approximately 3.71 days on March 31, 2025, and slightly increasing to 3.90 days on June 30, 2025.

This pattern indicates an increasing efficiency in inventory management, implying that Microsoft is increasingly reducing the amount of time inventory remains in stock before being sold or utilized. The significant reduction in DOH, especially seen from late 2023 into 2024 and into the first half of 2025, suggests a strategic shift towards leaner inventory levels and possibly improved supply chain operations or a shift in the company's product inventory strategy. Overall, the trend demonstrates a movement towards optimized inventory turnover, aligning with best practices for maintaining minimal stock levels relative to sales.