Microsoft Corporation (MSFT)
Number of days of payables
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.53 | 4.91 | 5.27 | 5.84 | 7.24 | |
| Number of days of payables | days | 66.01 | 74.29 | 69.20 | 62.51 | 50.43 |
June 30, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.53
= 66.01
The number of days of payables, also known as the days payable outstanding (DPO), measures how long it takes a company to pay its suppliers and vendors. It can provide insight into a company's liquidity and efficiency in managing its accounts payable.
Based on the data provided, Microsoft Corporation's number of days of payables has fluctuated over the past five years. As of June 30, 2023, the number of days of payables stands at 100.28 days, compared to 110.69 days in the previous year. This indicates that Microsoft has been able to manage its payables more efficiently, taking fewer days to settle its obligations to suppliers and vendors.
However, compared to the data from Jun 30, 2019, where the number of days of payables was 79.80 days, it is clear that there has been an increase in the number of days Microsoft takes to pay its payables. This suggests a potential slowdown in Microsoft's payables management efficiency.
It's important to note that trends in the number of days of payables should be considered alongside other financial metrics to gain a comprehensive view of Microsoft's financial health. An increasing number of days of payables could indicate a cash flow issue or strained supplier relationships, while a decreasing number of days of payables may suggest improved financial management.
In conclusion, while the decrease in the number of days of payables from the previous year is a positive sign, the increase compared to the data from Jun 30, 2019, warrants further investigation into Microsoft's working capital management and supplier relationships.
Peer comparison
Jun 30, 2023