Microsoft Corporation (MSFT)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Receivables turnover		5.33	5.51	5.30	5.25	5.85	4.31	5.39	5.55	6.28	4.33	5.66	5.29	6.17	4.25	5.84	5.41	6.07	4.41	6.03	5.63
DSO	days	68.54	66.24	68.84	69.50	62.41	84.73	67.74	65.80	58.14	84.24	64.47	68.97	59.18	85.80	62.52	67.45	60.13	82.81	60.57	64.82

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.33
= 68.54

Days Sales Outstanding (DSO) is a key financial metric that measures the average number of days it takes a company to collect payment after a sale has been made. For Microsoft Corporation, the DSO has fluctuated over the years based on the data provided.

From December 31, 2019, to December 31, 2024, Microsoft's DSO ranged from a low of 58.14 days to a high of 85.80 days. This indicates that on average, it took Microsoft anywhere from around 58 to 85 days to collect payments from customers.

A lower DSO suggests that Microsoft is efficient in collecting payments and managing its accounts receivable, while a higher DSO may indicate potential issues with customer creditworthiness or collections processes.

Overall, it is essential for Microsoft to monitor and manage its DSO effectively to ensure a healthy cash flow and financial stability. Any significant deviations from historical trends in DSO should be thoroughly investigated to identify the root causes and take appropriate actions to optimize working capital management.