Microsoft Corporation (MSFT)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	87,831,000	83,501,000	80,087,000	77,911,000	74,114,000	71,225,000	68,848,000	66,713,000	65,863,000	65,497,000	64,984,000	64,456,000	62,650,000	60,212,000	57,642,000	54,876,000	52,232,000	50,580,000	48,510,000	46,674,000
Inventory	US$ in thousands	938,000	848,000	909,000	1,626,000	1,246,000	1,304,000	1,615,000	3,000,000	2,500,000	2,877,000	2,980,000	4,268,000	3,742,000	3,296,000	3,019,000	3,411,000	2,636,000	2,245,000	1,924,000	2,705,000
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

June 30, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $87,831,000K ÷ $938,000K
= 93.64

The inventory turnover ratios for Microsoft Corporation over the analyzed period demonstrate notable fluctuations and an overall upward trend toward the most recent quarters. During the fiscal year ending September 30, 2020, the ratio stood at 17.25, indicating a moderate level of inventory efficiency. By the end of the calendar year 2020, the ratio increased substantially to 25.21, suggesting an improvement in inventory management or increased sales relative to inventory held.

Throughout 2021, the ratio experienced some decline and subsequent stabilization, with figures such as 22.53 at the end of March 2021, dropping to 19.09 in December 2021, and further decreasing to 16.74 in June 2022. These variations may reflect operational adjustments, seasonal influences, or shifts in inventory practices.

In the subsequent period, from late 2022 through early 2023, there was a renewed increase, with the ratio rising to 22.77 by March 2023. This upward trend continued remarkably in the following quarters, reaching 26.35 in June 2023 and slightly declining thereafter.

From late 2023 onward, the inventory turnover ratios surged dramatically, exceeding previous levels significantly. Notably, the ratio surged to 42.63 by December 2023, and further escalated to 54.62 in March 2024. The trend persisted with ratios of 59.48 in June 2024, 47.92 in September 2024, and an especially high ratio of 88.10 recorded at the end of December 2024. The subsequent quarters saw continued elevated ratios of 98.47 in March 2025 and 93.64 in June 2025.

This overall pattern indicates a substantial enhancement in inventory management efficiency in recent periods, especially from late 2023 onward. The markedly high ratios suggest that inventory is turning over at a much faster rate compared to earlier years, which could reflect strategic shifts towards more efficient supply chain management, inventory reduction initiatives, or increased product sales velocity.