Microsoft Corporation (MSFT)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 87,831,000 | 83,501,000 | 80,087,000 | 77,911,000 | 74,114,000 | 71,225,000 | 68,848,000 | 66,713,000 | 65,863,000 | 65,497,000 | 64,984,000 | 64,456,000 | 62,650,000 | 60,212,000 | 57,642,000 | 54,876,000 | 52,232,000 | 50,580,000 | 48,510,000 | 46,674,000 |
| Payables | US$ in thousands | 27,724,000 | 26,250,000 | 22,608,000 | 22,768,000 | 21,996,000 | 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 |
| 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 |
June 30, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $87,831,000K ÷ $27,724,000K
= 3.17
The payables turnover ratio of Microsoft Corporation demonstrates notable fluctuations over the period from September 2020 to June 2025. Initially, the ratio was approximately 3.73 at the end of September 2020, indicating the company was settling its accounts payable roughly 3.7 times within a fiscal period. This ratio increased slightly to 3.80 by the end of December 2020 and remained relatively stable through March 2021 at 3.77.
However, a decline was observed during the June 2021 quarter, where the ratio dropped to 3.44, suggesting a slight slowdown in the pace of paying suppliers. The ratio rebounded to 3.70 by September 2021 and remained fairly consistent into the end of 2021 at 3.76. March 2022 saw a marginal decrease again to 3.74, followed by a more pronounced decline to 3.30 by June 2022.
The upward trend resumed subsequently, with the ratio increasing to 3.88 in September 2022 and reaching 4.23 by the end of December 2022. This increase indicates the company was paying its suppliers more quickly during this period. The ratio continued to rise slightly to 4.28 in March 2023 but then declined to 3.64 by June 2023. It further decreased to 3.46 in September 2023 before a modest uptick to 3.89 at the end of December 2023.
The subsequent quarters saw a gradual decline to 3.94 in March 2024, followed by decreases to 3.37 in June 2024 and 3.42 in September 2024. The ratio slightly increased again to 3.54 at the end of December 2024 but then declined further to 3.18 and 3.17 in the last two quarters of June and September 2025, respectively.
Overall, the payables turnover ratio exhibits periods of both acceleration and deceleration in settling liabilities. These fluctuations could reflect changes in supplier payment strategies, working capital management, or operational cycle adjustments. The general trend suggests a tendency towards longer creditor payment periods over the analyzed period, especially evident in the decline from late 2022 onward, indicating a potential shift towards more conservative management of working capital or strategic postponement of payments.
Peer comparison
Jun 30, 2025