Microsoft Corporation (MSFT)
Current ratio
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 184,257,000 | 169,684,000 | 184,406,000 | 181,915,000 | 175,552,000 |
| Total current liabilities | US$ in thousands | 104,149,000 | 95,082,000 | 88,657,000 | 72,310,000 | 69,420,000 |
| Current ratio | 1.77 | 1.78 | 2.08 | 2.52 | 2.53 |
June 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $184,257,000K ÷ $104,149,000K
= 1.77
The current ratio of Microsoft Corporation has shown a declining trend over the past five years, decreasing from 2.53 in 2019 to 1.77 in 2023. This indicates that the company's ability to meet its short-term obligations with its current assets has weakened. The current ratio of 1.77 as of June 30, 2023, suggests that for every dollar of current liabilities, Microsoft has $1.77 of current assets, reflecting a slight decrease from the ratio of 1.78 in the previous year. While the current ratio is still above 1, indicating that the company's current assets exceed its current liabilities, the downward trend may warrant further examination of the company's liquidity management and potential impact on its financial stability.
Peer comparison
Jun 30, 2023