Microsoft Corporation (MSFT)

Working capital turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Revenue	US$ in thousands	281,724,000	245,122,000	211,915,000	198,270,000	168,088,000
Total current assets	US$ in thousands	191,131,000	159,734,000	184,257,000	169,684,000	184,406,000
Total current liabilities	US$ in thousands	141,218,000	125,286,000	104,149,000	95,082,000	88,657,000
Working capital turnover		5.64	7.12	2.65	2.66	1.76

June 30, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $281,724,000K ÷ ($191,131,000K – $141,218,000K)
= 5.64

The working capital turnover ratio of Microsoft Corporation demonstrates notable fluctuations over the fiscal years from June 30, 2021, to June 30, 2025. The ratio commenced at 1.76 in 2021, indicating a relatively moderate efficiency in utilizing working capital to generate sales. This figure increased substantially to 2.66 in 2022, reflecting an improvement in operational efficiency or a reduction in working capital relative to sales. The ratio remained relatively stable at 2.65 in 2023, suggesting consistency in the company's ability to leverage working capital during that period.

However, a significant increase is observed in 2024, when the ratio surged to 7.12. Such a substantial rise points to a remarkable efficiency in utilizing working capital to support sales, potentially driven by either a reduction in working capital, an increase in sales, or a combination of both. Conversely, in 2025, the ratio decreased to 5.64, indicating a slight decline in efficiency compared to the previous year, yet it remains markedly higher than the levels observed prior to 2024.

Overall, the trend reflects a period of enhanced efficiency in working capital management starting in 2024, with some moderation in 2025, suggesting that Microsoft has optimized its working capital utilization to support its sales activities more effectively in recent fiscal years.