Microsoft Corporation (MSFT)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 13,117,000 |
| Short-term investments | US$ in thousands | 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 | 123,519,000 |
| 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 |
| Cash ratio | 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 | 2.35 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($20,840,000K
+ $57,588,000K)
÷ $115,200,000K
= 0.68
The cash ratio of Microsoft Corporation has shown some fluctuations over the past several quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger position to meet its short-term obligations.
From December 2019 to September 2020, the cash ratio remained relatively stable between 1.89 and 2.35, indicating a strong liquidity position. However, from March 2021 to September 2023, there was a noticeable decline in the cash ratio, reaching a low of 0.67 in December 2023. This suggests a decrease in Microsoft's ability to cover short-term obligations with available cash during this period.
Subsequently, from March 2023 to September 2024, there has been some recovery in the cash ratio, fluctuating between 0.68 and 1.62. While the ratio has not fully returned to the levels seen in 2019 and 2020, the recent improvements indicate enhanced liquidity compared to the lowest point in December 2023.
Overall, Microsoft's cash ratio trend reflects variability in its liquidity position, with recent signs of improvement. It is important for investors and analysts to continue monitoring this ratio along with other financial metrics to assess the company's financial health and ability to meet its short-term obligations.
Peer comparison
Sep 30, 2024