Microsoft Corporation (MSFT)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 18,315,000 | 34,704,000 | 13,931,000 | 14,224,000 | 13,576,000 |
| Short-term investments | US$ in thousands | 57,216,000 | 76,558,000 | 90,826,000 | 116,110,000 | 122,951,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 125,286,000 | 104,149,000 | 95,082,000 | 88,657,000 | 72,310,000 |
| Quick ratio | 0.60 | 1.07 | 1.10 | 1.47 | 1.89 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($18,315,000K
+ $57,216,000K
+ $—K)
÷ $125,286,000K
= 0.60
The quick ratio of Microsoft Corporation has shown a declining trend over the past five years. As of June 30, 2020, the quick ratio stood at a healthy 1.89, indicating that Microsoft had $1.89 of liquid assets available to cover each $1 of current liabilities. However, by June 30, 2024, the quick ratio had decreased to 0.60, signaling a significant decrease in the company's ability to meet its short-term obligations with liquid assets.
This declining trend in the quick ratio could be concerning as it may suggest potential liquidity challenges for Microsoft in the future if the trend continues. It is important for investors and stakeholders to monitor this ratio closely to assess the company's short-term liquidity position and overall financial health.
Peer comparison
Jun 30, 2024