Microsoft Corporation (MSFT)

Receivables turnover

		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	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	127,934,000	124,121,000	120,489,000
Receivables	US$ in thousands	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	19,087,000	29,524,000	19,269,000
Receivables turnover		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	6.70	4.20	6.25

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $224,942,000K ÷ $42,831,000K
= 5.25

The receivables turnover ratio for Microsoft Corporation over the past eight quarters has ranged from 4.35 to 6.49. This ratio measures how efficiently the company is collecting on its credit sales. A higher turnover ratio suggests that Microsoft is collecting its accounts receivable more frequently during the year. The decrease in the ratio from the third quarter of 2022 to the second quarter of 2023 indicates that the company took longer to collect its accounts receivable during that period. Overall, the fluctuation in the receivables turnover ratio may be indicative of changes in Microsoft's credit policies, customer payment behaviors, or industry-specific economic trends.