Microsoft Corporation (MSFT)
Receivables turnover
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 209,747,000 | 196,109,000 | 165,936,000 | 140,503,000 | 123,495,000 |
| Receivables | US$ in thousands | 48,688,000 | 45,261,000 | 39,008,000 | 32,011,000 | 29,524,000 |
| Receivables turnover | 4.31 | 4.33 | 4.25 | 4.39 | 4.18 |
June 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $209,747,000K ÷ $48,688,000K
= 4.31
The receivables turnover ratio for Microsoft Corporation has shown a slight decreasing trend over the past five years. The ratio decreased from 4.47 in 2020 to 4.26 in 2019, before increasing to 4.42 in 2021, and then declining again to 4.35 in 2023. This ratio indicates that, on average, Microsoft collects its accounts receivable approximately 4.35 times during the year, suggesting effective management in collecting credit sales. However, the decreasing trend could warrant further investigation into the company's credit policies, customer payment behaviors, and collection procedures to ensure efficient receivables management in the future.
Peer comparison
Jun 30, 2023