Microsoft Corporation (MSFT)

Number of days of payables

		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	Sep 30, 2019
Payables turnover		4.90	5.98	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
Number of days of payables	days	74.47	61.03	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

September 30, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 4.90
= 74.47

The number of days of payables for Microsoft Corporation has exhibited some fluctuations over the past few quarters. As of September 30, 2024, the company had an average payment period to its suppliers of approximately 74.47 days, which was higher compared to the previous quarter. This increase may indicate that Microsoft is taking longer to pay its suppliers.

Looking at the trend over the last two years, there is some variability in the number of days of payables, ranging from a low of 45.63 days to a high of 74.47 days. This variability suggests that Microsoft's payment policy may be influenced by various factors such as business performance, working capital management, or supplier relationships.

Analyzing the number of days of payables in conjunction with other financial metrics can provide a more comprehensive understanding of Microsoft's financial management practices and liquidity position. A longer number of days of payables may indicate that the company is effectively managing its working capital by extending payment terms, but it could also signal potential liquidity risks if not managed carefully. Further analysis and comparison with industry benchmarks would be beneficial to assess Microsoft's performance in this area.