Microsoft Corporation (MSFT)

Current 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
Total current assets	US$ in thousands	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	175,552,000	159,887,000
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
Current ratio		1.22	1.66	1.77	1.91	1.93	1.84	1.78	1.99	2.25	2.16	2.08	2.29	2.58	2.53	2.52	2.90	2.80	2.85	2.53	2.97

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $147,393,000K ÷ $121,016,000K
= 1.22

The current ratio of Microsoft Corporation, a measure of its short-term liquidity, has exhibited some fluctuation over the past eight quarters. The ratio, which indicates the company's ability to meet its short-term obligations with its current assets, declined from 1.99 in March 2022 to 1.22 in December 2023. This decline suggests a potential reduction in the company's ability to cover its short-term liabilities with its current assets.

The ratio experienced a notable peak of 1.93 in December 2022, followed by a gradual decrease over the subsequent quarters. This trend may indicate a decrease in the proportion of current assets to current liabilities, potentially raising concerns about the company's short-term financial position.

The current ratio saw a significant increase to 1.77 in June 2023, followed by a further rise to 1.91 in March 2023, indicating an improved ability to cover short-term obligations during these periods. However, the current ratio has remained below 2, signaling that the company's current assets may not be sufficient to fully cover its current liabilities.

Overall, while the current ratio of Microsoft Corporation has shown variability, it is important to closely monitor future trends to assess the company's short-term liquidity and ability to fulfill its obligations.