Microsoft Corporation (MSFT)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 104,168,000 | 102,007,000 | 100,826,000 | 99,955,000 | 98,955,000 | 95,995,000 | 93,342,000 | 90,084,000 | 86,673,000 | 83,147,000 | 79,943,000 | 78,079,000 | 75,659,000 | 73,738,000 | 73,160,000 | 70,198,000 | 68,893,000 | 68,580,000 | 67,925,000 | 84,891,000 |
| Payables | US$ in thousands | 17,695,000 | 19,307,000 | 18,095,000 | 15,305,000 | 15,354,000 | 16,609,000 | 19,000,000 | 16,085,000 | 15,314,000 | 14,832,000 | 15,163,000 | 13,412,000 | 12,770,000 | 12,509,000 | 12,530,000 | 9,246,000 | 8,811,000 | 8,574,000 | 9,382,000 | 7,544,000 |
| 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 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $104,168,000K ÷ $17,695,000K
= 5.89
The payables turnover ratio for Microsoft Corporation has shown fluctuations over the past eight quarters. The ratio indicates the company's efficiency in paying its suppliers and managing its accounts payable.
The trend indicates that Microsoft's payables turnover has ranged from 3.30 to 4.28 times during this period. A higher payables turnover ratio generally suggests that the company is paying off its suppliers more quickly, which may be a sign of strong financial management.
The decrease in the payables turnover ratio from March 31, 2023, to September 30, 2023, might imply that Microsoft took longer to pay its suppliers during that period. However, the subsequent increase in the ratio from September 30, 2023, to December 31, 2023, suggests that the company improved its payables management towards the end of the year.
It is essential to monitor the payables turnover ratio in conjunction with other financial metrics to gain a comprehensive understanding of Microsoft's financial performance and liquidity management.
Peer comparison
Dec 31, 2023