Microsoft Corporation (MSFT)

Number of days of payables

		Dec 31, 2024	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
Payables turnover		5.31	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
Number of days of payables	days	68.76	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

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.31
= 68.76

The number of days of payables for Microsoft Corporation has shown a fluctuating trend over the past few years. Starting at 46.68 days on December 31, 2019, the number increased to 74.47 days on September 30, 2024. This metric indicates the average number of days it takes for Microsoft to pay its suppliers or vendors, reflecting the company's payment terms and efficiency in managing its accounts payable.

The upward trend in the number of days of payables from 2019 to 2024 may suggest that Microsoft has been taking longer to pay its suppliers over time. This could be due to various factors such as changes in payment policies, negotiation of extended payment terms with vendors, or shifts in the company's working capital management strategies.

It's important to note that a higher number of days of payables may indicate a potential liquidity advantage for Microsoft as it can hold onto cash longer before paying its obligations. However, excessively long payment periods could strain relationships with suppliers and impact the company's creditworthiness.

Overall, monitoring and analyzing the number of days of payables can provide valuable insights into Microsoft's cash flow management, supplier relationships, and overall financial health. Tracking this metric over time can help assess changes in the company's payment practices and potential implications for its operating performance and cash position.