Microsoft Corporation (MSFT)

Quick 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
Cash	US$ in thousands	20,840,000	19,634,000	17,305,000	80,452,000	34,704,000	26,562,000	15,646,000	22,884,000	13,931,000	12,498,000	20,604,000	19,165,000	14,224,000	13,702,000	14,432,000	17,205,000	13,576,000	11,710,000	8,864,000	13,117,000
Short-term investments	US$ in thousands	57,588,000	60,387,000	63,712,000	63,499,000	76,558,000	77,865,000	83,862,000	84,378,000	90,826,000	92,195,000	104,765,000	111,450,000	116,110,000	111,705,000	117,536,000	120,772,000	122,951,000	125,916,000	125,389,000	123,519,000
Receivables	US$ in thousands	44,148,000	44,029,000	42,831,000	36,953,000	48,688,000	38,137,000	36,378,000	32,015,000	45,261,000	33,613,000	34,507,000	28,203,000	39,008,000	27,129,000	28,020,000	23,951,000	32,011,000	22,699,000	23,525,000	19,087,000
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
Quick ratio		1.06	1.05	1.02	1.45	1.54	1.66	1.66	1.59	1.58	1.79	2.06	1.97	1.91	2.11	2.37	2.31	2.33	2.73	2.65	2.68

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($20,840,000K + $57,588,000K + $44,148,000K) ÷ $115,200,000K
= 1.06

The quick ratio for Microsoft Corporation has shown fluctuations over the past few years. Generally, a quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term liabilities. Microsoft's quick ratio has consistently been above 1 in recent years, signaling a healthy liquidity position.

In the most recent period, as of September 30, 2024, the quick ratio stands at 1.06. This indicates that for every dollar of current liabilities, Microsoft has $1.06 of quick assets available to cover these obligations. While still above the threshold of 1, the slight decrease from the previous period may suggest a minor tightening of liquidity.

Looking at historical trends, the quick ratio has demonstrated variability, reaching a peak of 2.73 on December 31, 2019, and fluctuating thereafter. The sharp decrease to 1.02 on December 31, 2023, was followed by an upward trend, reflecting potential efforts to strengthen liquidity management.

Overall, Microsoft's quick ratio performance indicates a generally solid liquidity position over the analyzed periods. However, ongoing monitoring of liquidity levels is crucial to ensure the company can meet its short-term obligations effectively.