Microsoft Corporation (MSFT)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 120,008,000 | 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 |
| Payables | US$ in thousands | 22,608,000 | 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 |
| 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $120,008,000K ÷ $22,608,000K
= 5.31
The payables turnover ratio for Microsoft Corporation has shown some fluctuations over the period from December 2019 to December 2024. The payables turnover ratio indicates how efficiently the company is managing its payables by paying its suppliers.
From December 2019 to June 2021, the payables turnover ratio remained relatively stable between 7.82 and 5.82. However, from June 2021 to December 2024, there was a downward trend in the ratio, decreasing to as low as 4.90 in September 2024 before slightly recovering to 5.31 by December 2024.
A decreasing payables turnover ratio can suggest that the company is taking longer to pay its suppliers, which could indicate potential liquidity issues or strained relationships with vendors. It is essential for Microsoft to monitor its payables turnover ratio to ensure efficient management of its payables and maintain healthy supplier relationships. Further analysis of the company's cash flow and working capital management may provide additional insights into its payables turnover performance.
Peer comparison
Dec 31, 2024