Microsoft Corporation (MSFT)

Number of days of payables

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Payables turnover		5.89	5.28	5.57	6.53	6.44	5.78	4.91	5.60	5.66	5.61	5.27	5.82	5.92	5.89	5.84	7.59	7.82	8.00	7.24	11.25
Number of days of payables	days	62.00	69.08	65.51	55.89	56.63	63.15	74.30	65.17	64.49	65.11	69.23	62.70	61.61	61.92	62.51	48.08	46.68	45.63	50.41	32.44

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.89
= 62.00

Microsoft Corporation's number of days of payables, which measures the average number of days it takes the company to settle its outstanding supplier invoices, has shown some variability over the past eight quarters. The trend indicates that the number of days of payables increased in the third quarter of 2023 compared to the previous two quarters, reaching 105.63 days. This suggests that Microsoft took slightly longer to pay its suppliers during this period.

However, in the fourth quarter of 2023, the number of days of payables decreased to 93.81 days, indicating an improvement in the company's ability to settle its payables more efficiently. Comparing this to the same period in the previous year, there was a slight increase in the number of days of payables from 86.24 days to 93.81 days.

Overall, the analysis of Microsoft's number of days of payables suggests that the company's payment practices to suppliers have shown variability over time, with an upward trend in the recent quarters. This metric provides insights into the company's working capital management and its ability to effectively manage its cash flow and supplier relationships.