Microsoft Corporation (MSFT)

Cash ratio

		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	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	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	13,117,000	11,356,000	11,212,000
Short-term investments	US$ in thousands	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	123,519,000	122,463,000	120,406,000
Total current liabilities	US$ in thousands	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	69,420,000	53,861,000
Cash ratio		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	2.35	1.93	2.44

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($17,305,000K + $63,712,000K) ÷ $121,016,000K
= 0.67

The cash ratio of Microsoft Corporation has exhibited fluctuations over the past eight quarters. The ratio, which measures a company's ability to cover short-term liabilities with its cash and cash equivalents, declined from 1.52 in March 2022 to 0.85 in December 2023. This decline may indicate a reduced ability to meet short-term obligations solely with available cash. However, it is important to note that the cash ratio remained above 1 throughout the period, suggesting that Microsoft has generally maintained a sufficient level of cash to cover its short-term liabilities. Further analysis, taking into account the overall liquidity position and industry benchmarks, would provide a more comprehensive understanding of Microsoft's cash management.