Microsoft Corporation (MSFT)

Number of days of payables

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Payables turnover		3.17	3.37	3.64	3.30	3.44
Number of days of payables	days	115.21	108.33	100.28	110.69	105.96

June 30, 2025 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 3.17
= 115.21

The analysis of Microsoft Corporation's number of days of payables over the specified period indicates the company's evolving management of its accounts payable obligations. As of June 30, 2021, the days payable stood at approximately 105.96 days. This metric increased slightly to 110.69 days by June 30, 2022, suggesting a slight elongation in the time taken to settle payables, possibly reflecting extended credit terms or strategic liquidity management.

Subsequently, a decrease to approximately 100.28 days was observed by June 30, 2023, indicating a trend toward faster settlement of liabilities. This could signal improved cash flow efficiency or a shift in supplier payment policies. However, the days payable increased again to approximately 108.33 days as of June 30, 2024, reverting closer to previous levels, which may indicate a return to more extended payment periods or adjustments in credit terms.

Looking ahead, the projected data for June 30, 2025, suggests a further increase to approximately 115.21 days. Such an upward trend over this period reflects a pattern of lengthening the period taken to pay suppliers. This escalation could impact working capital management, short-term liquidity, and supplier relationships. Overall, the fluctuations within this span demonstrate that Microsoft has actively managed its payables to optimize cash flow, with an overall tendency toward longer credit periods becoming apparent in the latest projections.