Microsoft Corporation (MSFT)

Working capital 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
Total current assets	US$ in thousands	149,926,000	147,180,000	147,393,000	207,586,000	184,257,000	163,889,000	157,823,000	160,812,000	169,684,000	153,922,000	174,188,000	174,326,000	184,406,000	165,614,000	173,973,000	177,077,000	181,915,000	170,505,000	167,074,000	165,896,000
Total current liabilities	US$ in thousands	115,200,000	118,525,000	121,016,000	124,792,000	104,149,000	85,691,000	81,718,000	87,389,000	95,082,000	77,439,000	77,510,000	80,528,000	88,657,000	72,193,000	67,486,000	70,056,000	72,310,000	58,707,000	59,640,000	58,118,000
Working capital turnover		7.01	8.15	8.53	2.61	2.62	2.63	2.65	2.74	2.63	2.49	1.89	1.85	1.73	1.70	1.42	1.36	1.29	1.22	1.23	1.19

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $243,277,000K ÷ ($149,926,000K – $115,200,000K)
= 7.01

The working capital turnover ratio for Microsoft Corporation has shown fluctuations over the past few years. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue.

The working capital turnover ratio increased from 7.01 in September 2023 to 8.53 in December 2023, reflecting an improvement in the company's ability to generate revenue using its working capital during that period. However, in the following quarters, the ratio declined, reaching 2.61 in September 2023, indicating a decrease in efficiency in utilizing working capital.

The ratio gradually increased throughout 2022, with fluctuations in between, reaching 2.74 in September 2022. This could imply that Microsoft was able to generate more revenue for each unit of working capital invested during that period.

From December 2022 to March 2021, there was a steady decline in the working capital turnover ratio. The ratio dropped from 2.65 in December 2022 to 1.36 in March 2021, which indicates a decrease in efficiency in utilizing working capital to generate revenue during this period.

Overall, the working capital turnover ratio for Microsoft Corporation has exhibited variability over the past few years, with some periods showing improvements in efficiency, while other periods showing a decline. Further analysis would be needed to understand the factors driving these fluctuations and to assess the company's financial performance comprehensively.