Microsoft Corporation (MSFT)

Days of sales outstanding (DSO)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Receivables turnover		4.03	4.31	4.35	4.48	4.42
DSO	days	90.57	84.76	83.86	81.48	82.61

June 30, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.03
= 90.57

The analysis of Microsoft Corporation's days of sales outstanding (DSO) over the specified period indicates a relatively stable yet gradual increase in the number of days it takes the company to collect receivables. As of June 30, 2021, the DSO was approximately 82.61 days, reflecting the average duration customers took to settle their accounts. By June 30, 2022, this figure slightly decreased to 81.48 days, suggesting a marginal improvement in accounts receivable collection efficiency during that year.

However, in the subsequent years, the DSO demonstrated a consistent upward trend. As of June 30, 2023, the DSO increased to 83.86 days, indicating that the receivables took slightly longer to collect compared to the previous year. This upward movement continued into June 30, 2024, with the DSO reaching 84.76 days, signifying a further elongation in collection periods.

The most marked change is observed between June 30, 2024, and June 30, 2025, where the DSO rose to 90.57 days. This substantial increase suggests that, on average, receivables are remaining uncollected for nearly three months, representing a notable elongation in the company's receivables collection cycle.

Overall, the trend in DSO reflects a gradual increase over the four-year period, with the most recent year showing a significant rise. This could imply a shift in credit policies, customer payment behavior, or broader market conditions affecting collection times. From a financial perspective, the increasing DSO warrants ongoing monitoring to assess potential impacts on cash flow and liquidity management.