Microsoft Corporation (MSFT)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 111,595,000 | 108,164,000 | 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 |
| Payables | US$ in thousands | 22,768,000 | 18,087,000 | 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 |
| 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 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $111,595,000K ÷ $22,768,000K
= 4.90
The payables turnover ratio for Microsoft Corporation has shown fluctuations over the past several quarters, ranging from a low of 4.91 to a high of 8.00. The formula for payables turnover is cost of goods sold divided by average accounts payable. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently within a given period.
The trend in Microsoft's payables turnover ratio has been relatively stable, with fluctuations within a moderate range, suggesting a consistent approach to managing its accounts payable. A consistent or improving payables turnover ratio can indicate efficient management of cash flow, as well as strong relationships with suppliers.
The overall average payables turnover ratio for Microsoft over the periods provided is approximately 5.92, indicating that, on average, the company pays its suppliers nearly six times a year. This suggests that Microsoft has a relatively effective system in place for managing its payables and maintaining vendor relationships.
Further analysis of the company's payables turnover ratio in conjunction with other financial metrics and industry benchmarks can provide a more comprehensive understanding of Microsoft's operational efficiency and financial management practices.
Peer comparison
Sep 30, 2024