Microsoft Corporation (MSFT)
Working capital turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 245,122,000 | 211,915,000 | 198,270,000 | 168,088,000 | 143,015,000 |
| Total current assets | US$ in thousands | 159,734,000 | 184,257,000 | 169,684,000 | 184,406,000 | 181,915,000 |
| Total current liabilities | US$ in thousands | 125,286,000 | 104,149,000 | 95,082,000 | 88,657,000 | 72,310,000 |
| Working capital turnover | 7.12 | 2.65 | 2.66 | 1.76 | 1.30 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $245,122,000K ÷ ($159,734,000K – $125,286,000K)
= 7.12
The working capital turnover for Microsoft Corporation has shown a significant upward trend over the years, indicating an improvement in the company's efficiency in managing its working capital. The ratio increased from 1.30 in June 30, 2020, to 7.12 in June 30, 2024, demonstrating a substantial enhancement in working capital utilization. This suggests that Microsoft has been able to generate more sales revenue relative to its investment in working capital, which is a positive sign of operational efficiency and effective management of current assets and liabilities. Overall, the increasing trend in working capital turnover reflects the company's ability to efficiently convert its working capital into sales revenue over the years.
Peer comparison
Jun 30, 2024