Microsoft Corporation (MSFT)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 256,603,000 | 243,277,000 | 233,448,000 | 224,942,000 | 216,125,000 | 209,732,000 | 205,479,000 | 201,806,000 | 201,002,000 | 196,109,000 | 190,298,000 | 182,625,000 | 173,955,000 | 165,936,000 | 158,374,000 | 151,630,000 | 145,394,000 | 141,098,000 | 136,782,000 | 132,460,000 |
| Receivables | US$ in thousands | 48,188,000 | 44,148,000 | 44,029,000 | 42,831,000 | 36,953,000 | 48,688,000 | 38,137,000 | 36,378,000 | 32,015,000 | 45,261,000 | 33,613,000 | 34,507,000 | 28,203,000 | 39,008,000 | 27,129,000 | 28,020,000 | 23,951,000 | 32,011,000 | 22,699,000 | 23,525,000 |
| Receivables turnover | 5.33 | 5.51 | 5.30 | 5.25 | 5.85 | 4.31 | 5.39 | 5.55 | 6.28 | 4.33 | 5.66 | 5.29 | 6.17 | 4.25 | 5.84 | 5.41 | 6.07 | 4.41 | 6.03 | 5.63 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $256,603,000K ÷ $48,188,000K
= 5.33
The receivables turnover ratio for Microsoft Corporation has fluctuated over the period from December 31, 2019, to December 31, 2024. The ratio reflects the efficiency of the company in collecting outstanding receivables during a specific period.
The trend analysis shows that the receivables turnover ratio ranged from a low of 4.25 on June 30, 2021, to a high of 6.28 on September 30, 2022. Generally, a higher receivables turnover ratio indicates that the company is collecting its accounts receivable more frequently and efficiently.
The ratio experienced slight fluctuations throughout the period but generally remained within a consistent range, with a median value of around 5.50. This suggests that Microsoft has been maintaining a relatively stable collection efficiency in terms of its receivables.
It is important to note that a higher receivables turnover ratio may indicate that the company has stricter credit policies or that it is collecting its receivables more promptly. On the other hand, a declining ratio could signal potential issues with collecting payments from customers or an increase in credit risk.
Overall, the analysis of Microsoft Corporation's receivables turnover ratio indicates that the company has been effectively managing its accounts receivable and maintaining a steady collection efficiency over the analyzed period.
Peer comparison
Dec 31, 2024