Microsoft Corporation (MSFT)

Number of days of payables

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 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
Payables turnover		3.17	3.18	3.54	3.42	3.37	3.94	3.89	3.46	3.64	4.28	4.23	3.88	3.30	3.74	3.76	3.70	3.44	3.77	3.80	3.73
Number of days of payables	days	115.21	114.74	103.04	106.66	108.33	92.69	93.81	105.63	100.28	85.29	86.24	94.05	110.69	97.51	96.97	98.65	105.96	96.78	96.08	97.82

June 30, 2025 calculation

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

The analysis of Microsoft's days payable outstanding (DPO) over the analyzed period reveals notable fluctuations and underlying trends. Starting from September 30, 2020, with a DPO of approximately 97.82 days, there was a slight decline by December 31, 2020, to around 96.08 days, maintaining relative stability into the first quarter of 2021 at approximately 96.78 days. A discernible increase is observed in the second quarter of 2021, with the DPO rising to nearly 105.96 days, indicating an extension in payment terms or strategic delays in settling payables.

Subsequently, the DPO decreased somewhat to approximately 98.65 days by September 2021 and remained relatively stable into the end of 2021, with minor fluctuations around 96.97 days in December 2021. In early 2022, the DPO was steady at approximately 97.51 days before experiencing an upward trend again, reaching about 110.69 days by June 30, 2022. This increase suggests a deliberate extension of payable periods, possibly reflecting changes in supplier relationships, credit policies, or liquidity management strategies.

The latter part of 2022 displayed a declining trend, with the DPO decreasing to approximately 86.24 days in December 2022, indicating a shortening of payable periods. Early 2023 saw a slight further reduction to around 85.29 days by March, with a subsequent increase to approximately 100.28 days by June 2023, and further to about 105.63 days in September 2023, reaching the highest levels in the dataset.

Into the final quarters analyzed, a decrease is observed during December 2023 with approximately 93.81 days, followed by a slight reduction to 92.69 days in March 2024. The trend then reverses with a notable increase to about 108.33 days in June 2024 and further to approximately 106.66 days in September 2024. The last two data points, December 2024 and March 2025, show ongoing elevated levels at approximately 103.04 days and 114.74 days respectively, with a peak of approximately 115.21 days in June 2025.

Overall, the data indicates that Microsoft’s days payable outstanding has experienced periods of both elongation and shortening over the examined timeframe. These fluctuations may reflect strategic adjustments in payment policies, evolving supplier agreements, or cash management practices, possibly aligned with broader macroeconomic conditions or internal financial strategies.