Microsoft Corporation (MSFT)
Current ratio
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 191,131,000 | 156,644,000 | 147,080,000 | 149,926,000 | 159,734,000 | 147,180,000 | 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 |
| Total current liabilities | US$ in thousands | 141,218,000 | 114,206,000 | 108,882,000 | 115,200,000 | 125,286,000 | 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 |
| Current ratio | 1.35 | 1.37 | 1.35 | 1.30 | 1.27 | 1.24 | 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 |
June 30, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $191,131,000K ÷ $141,218,000K
= 1.35
The analysis of Microsoft Corporation’s current ratio over the period from September 2020 through June 2025 reveals notable trends and fluctuations. The current ratio, which measures the company's ability to meet its short-term obligations with its short-term assets, has generally remained above 1. indicating a comfortable liquidity position throughout the observed period.
Initially, in September 2020, the current ratio stood at 2.53, indicating a strong liquidity buffer. The ratio increased slightly to 2.58 by the end of December 2020, suggesting improved short-term liquidity. However, there was a subsequent decline throughout 2021; the ratio decreased gradually from 2.29 in March 2021 to 2.16 in September 2021 and further to 2.25 by the end of December 2021. The downward trend continued into 2022, reaching a low of 1.78 in June 2022. Towards the end of 2022 and early 2023, the ratio showed signs of stabilization, with values around 1.91 in March 2023 and 1.77 in June 2023.
From late 2023 onwards, the current ratio exhibited a continued declining trend, reaching 1.66 in September 2023 and dropping further to 1.22 by December 2023. This indicates a significant reduction in the company's short-term liquidity cushion. Nevertheless, the ratio demonstrated signs of modest recovery in 2024 and 2025, reaching 1.35 in December 2024 and maintaining a similar level at 1.37 in March 2025, with a slight decrease to 1.35 in June 2025.
Overall, the data suggest that Microsoft’s liquidity position has experienced a gradual decline from a very comfortable margin above 2.5 in 2020 to a more moderate level around 1.2 to 1.3 in recent periods. Despite this downward trend, the current ratio remains above 1, implying that the company is generally capable of covering its short-term liabilities with its short-term assets. The decreasing trend warrants ongoing monitoring, particularly as ratios approach levels closer to 1, which could signal increased liquidity pressure if the trend persists.
Peer comparison
Jun 30, 2025