Microsoft Corporation (MSFT)
Current ratio
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 147,080,000 | 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 |
| Total current liabilities | US$ in thousands | 108,882,000 | 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 |
| Current ratio | 1.35 | 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 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $147,080,000K ÷ $108,882,000K
= 1.35
Microsoft Corporation's current ratio has seen fluctuations over the provided periods. The current ratio provides an indication of the company's ability to cover its short-term obligations with its current assets.
From December 31, 2019, to December 31, 2020, the current ratio remained relatively stable, ranging from 2.80 to 2.58. However, there was a noticeable decline in the ratio by March 31, 2021, where it dropped to 2.29 and continued to decrease to 1.77 by June 30, 2023. This decreasing trend indicates a potential weakening in Microsoft's short-term liquidity position.
Following the dip, there was a slight uptick in the current ratio by December 31, 2023, reaching 1.22, but this was followed by a continuous decline up to December 31, 2024, where the ratio stood at 1.35. A current ratio of below 2 may suggest that Microsoft could face difficulties in meeting its short-term obligations with its current assets.
It is essential for investors and analysts to monitor Microsoft's current ratio over time to assess the company's liquidity position and its ability to navigate short-term financial challenges.
Peer comparison
Dec 31, 2024