Microsoft Corporation (MSFT)

Current 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
Total current assets	US$ in thousands	149,926,000	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	181,915,000	170,505,000	167,074,000	165,896,000
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
Current ratio		1.30	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	2.52	2.90	2.80	2.85

September 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $149,926,000K ÷ $115,200,000K
= 1.30

The current ratio of Microsoft Corporation has shown a fluctuating trend over the past two years. As of Sep 30, 2024, the current ratio stands at 1.30, which indicates that the company has $1.30 in current assets to cover each $1 of current liabilities.

In the recent quarters, the current ratio has trended downwards from 1.99 in Mar 31, 2022 to 1.30 in Sep 30, 2024. This suggests that the company may be facing challenges in efficiently managing its short-term liquidity and meeting its current obligations.

A current ratio below 1 would indicate that the company may have difficulty meeting its short-term obligations, while a ratio significantly above 1 may suggest overinvestment in current assets. It is essential for Microsoft to monitor and manage its current ratio effectively to ensure it maintains a healthy balance between liquidity and operational efficiency. Additionally, investors and stakeholders should closely monitor these trends to assess the company's financial health and sustainability.