Microsoft Corporation (MSFT)
Receivables turnover
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 127,934,000 |
| Receivables | US$ in thousands | 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 | 19,087,000 |
| Receivables turnover | 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 | 6.70 |
September 30, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $243,277,000K ÷ $44,148,000K
= 5.51
The receivables turnover ratio measures how efficiently a company is collecting its accounts receivables during a specific period. A higher turnover ratio indicates that the company is collecting its receivables more quickly.
Microsoft Corporation's receivables turnover has shown some fluctuations over the past few quarters. The trend indicates that Microsoft has been able to effectively manage its accounts receivables, with the ratio hovering around 5 to 6 times on average over the past two years.
In the latest period, as of September 30, 2024, the receivables turnover was 5.51 times, indicating that Microsoft converted its accounts receivables into cash approximately 5.51 times during the period. This suggests that Microsoft is collecting its receivables at a relatively stable pace compared to previous quarters.
Overall, Microsoft's receivables turnover ratio suggests that the company has a solid accounts receivable management process in place, with a consistent ability to efficiently collect outstanding payments from customers.
Peer comparison
Sep 30, 2024