Microsoft Corporation (MSFT)
Cash ratio
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 17,482,000 | 20,840,000 | 19,634,000 | 17,305,000 | 80,452,000 | 34,704,000 | 26,562,000 | 15,646,000 | 22,884,000 | 13,931,000 | 12,498,000 | 20,604,000 | 19,165,000 | 14,224,000 | 13,702,000 | 14,432,000 | 17,205,000 | 13,576,000 | 11,710,000 | 8,864,000 |
| Short-term investments | US$ in thousands | 54,073,000 | 57,588,000 | 60,387,000 | 63,712,000 | 63,499,000 | 76,558,000 | 77,865,000 | 83,862,000 | 84,378,000 | 90,826,000 | 92,195,000 | 104,765,000 | 111,450,000 | 116,110,000 | 111,705,000 | 117,536,000 | 120,772,000 | 122,951,000 | 125,916,000 | 125,389,000 |
| Total current liabilities | US$ in thousands | 108,882,000 | 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 |
| Cash ratio | 0.66 | 0.68 | 0.68 | 0.67 | 1.15 | 1.07 | 1.22 | 1.22 | 1.23 | 1.10 | 1.35 | 1.62 | 1.62 | 1.47 | 1.74 | 1.96 | 1.97 | 1.89 | 2.34 | 2.25 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($17,482,000K
+ $54,073,000K)
÷ $108,882,000K
= 0.66
The cash ratio of Microsoft Corporation has exhibited a decreasing trend from December 31, 2019, to December 31, 2024. The cash ratio started at 2.25 on December 31, 2019, indicating that Microsoft had $2.25 of cash and cash equivalents for every $1 of current liabilities. Over time, the cash ratio gradually declined, reaching its lowest point of 0.66 on December 31, 2024.
A cash ratio above 1 is generally considered healthy as it suggests the company has enough cash on hand to cover its short-term obligations. Microsoft's cash ratio remained above 1 throughout the period, indicating that the company maintained a strong liquidity position despite the declining trend.
However, the decreasing trend in the cash ratio may suggest that Microsoft has been using its cash for investments, acquisitions, or other strategic initiatives rather than holding excess cash. Investors and stakeholders should continue to monitor Microsoft's cash management practices to ensure the company maintains sufficient liquidity to meet its obligations in the future.
Peer comparison
Dec 31, 2024