Current Ratio
since 2005
Calculation
Microsoft Corp., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Jun 30, 2026 | 1.23 | = | 207,710) | ÷ | 168,825) |
| Jun 30, 2025 | 1.35 | = | 191,131) | ÷ | 141,218) |
| Jun 30, 2024 | 1.27 | = | 159,734) | ÷ | 125,286) |
| Jun 30, 2023 | 1.77 | = | 184,257) | ÷ | 104,149) |
| Jun 30, 2022 | 1.78 | = | 169,684) | ÷ | 95,082) |
| Jun 30, 2021 | 2.08 | = | 184,406) | ÷ | 88,657) |
| Jun 30, 2020 | 2.52 | = | 181,915) | ÷ | 72,310) |
| Jun 30, 2019 | 2.53 | = | 175,552) | ÷ | 69,420) |
| Jun 30, 2018 | 2.90 | = | 169,662) | ÷ | 58,488) |
| Jun 30, 2017 | 2.48 | = | 159,851) | ÷ | 64,527) |
| Jun 30, 2016 | 2.35 | = | 139,660) | ÷ | 59,357) |
| Jun 30, 2015 | 2.50 | = | 124,712) | ÷ | 49,858) |
| Jun 30, 2014 | 2.50 | = | 114,246) | ÷ | 45,625) |
| Jun 30, 2013 | 2.71 | = | 101,466) | ÷ | 37,417) |
| Jun 30, 2012 | 2.60 | = | 85,084) | ÷ | 32,688) |
| Jun 30, 2011 | 2.60 | = | 74,918) | ÷ | 28,774) |
| Jun 30, 2010 | 2.13 | = | 55,676) | ÷ | 26,147) |
| Jun 30, 2009 | 1.82 | = | 49,280) | ÷ | 27,034) |
| Jun 30, 2008 | 1.45 | = | 43,242) | ÷ | 29,886) |
| Jun 30, 2007 | 1.69 | = | 40,168) | ÷ | 23,754) |
| Jun 30, 2006 | 2.18 | = | 49,010) | ÷ | 22,442) |
| Jun 30, 2005 | 2.89 | = | 48,737) | ÷ | 16,877) |
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
1 US$ in millions
The liquidity position of the entity has undergone significant fluctuations over the observed period from 2005 to 2026. While both current assets and current liabilities have exhibited substantial long-term growth, the relationship between the two has shifted, resulting in a varying current ratio that indicates changes in short-term solvency and working capital management.
- Current Asset Expansion
- A consistent long-term increase in current assets is observed, rising from 48,737 million USD in 2005 to 207,710 million USD by 2026. Growth was particularly aggressive between 2010 and 2020, with assets more than tripling in that decade, reflecting a significant accumulation of liquid resources.
- Current Liability Growth
- Current liabilities have followed a similar upward trajectory, increasing from 16,877 million USD in 2005 to 168,825 million USD by 2026. The growth in liabilities accelerated markedly after 2020, with a sharp increase from 72,310 million USD in 2019 to over 168 billion USD by the end of the period, outpacing the growth rate of current assets in the final years.
- Current Ratio Volatility and Trends
- The current ratio has moved through three distinct phases: an initial decline from 2.89 in 2005 to a low of 1.45 in 2008; a recovery and stabilization phase between 2009 and 2018 where the ratio peaked again at 2.90; and a subsequent downward trend from 2019 to 2026, ending at 1.23.
- Liquidity Compression
- The most recent trend indicates a tightening of liquidity. Despite the absolute increase in current assets, the ratio has declined from 2.52 in 2020 to 1.23 in 2026. This compression suggests a strategic shift in capital structure or an increase in short-term obligations relative to the available liquid asset base.
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Comparison to Competitors
Microsoft Corp., current ratio, long-term trends, comparison to competitors
| Microsoft Corp. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jun 30, 2026 | 1.23 | — | — | — | — | — | — | — | 1.12 | — | — | 0.76 | — | — | 1.32 |
| Jun 30, 2025 | 1.35 | 1.42 | 1.00 | 3.32 | 2.86 | 3.38 | 0.96 | 1.36 | 0.75 | 7.11 | 0.94 | 1.06 | 1.00 | 1.62 | 1.90 |
| Jun 30, 2024 | 1.27 | 1.10 | 1.07 | 2.19 | 2.93 | 2.64 | 1.04 | 1.29 | 0.72 | 5.96 | 0.89 | 1.09 | 1.10 | 2.44 | 1.97 |
| Jun 30, 2023 | 1.77 | 1.30 | 1.34 | 1.71 | 1.24 | 3.17 | 0.96 | 1.47 | 0.91 | 5.55 | 0.78 | 1.02 | 1.06 | 1.15 | 1.75 |
| Jun 30, 2022 | 1.78 | 1.23 | 1.11 | 3.35 | 1.27 | 3.09 | 0.92 | 1.39 | 1.62 | 5.17 | 0.77 | 1.05 | 1.11 | 1.09 | 1.03 |
| Jun 30, 2021 | 2.08 | 1.25 | 1.25 | 5.05 | 1.77 | 3.54 | 0.88 | 1.94 | 2.30 | 4.34 | 0.91 | 1.23 | 1.05 | 1.16 | 1.12 |
| Jun 30, 2020 | 2.52 | 1.40 | 1.48 | — | 1.86 | 5.77 | 0.98 | 2.26 | 3.03 | 3.74 | 1.91 | 1.08 | 1.21 | 1.19 | 1.04 |
| Jun 30, 2019 | 2.53 | 1.40 | 0.79 | — | 1.74 | 4.51 | 1.02 | 1.83 | 2.49 | — | 1.78 | 0.95 | 1.03 | 0.99 | 1.11 |
| Jun 30, 2018 | 2.90 | 1.34 | 1.13 | — | 1.34 | — | 1.29 | 1.14 | 3.96 | — | 1.93 | 0.92 | 1.17 | 0.73 | 1.92 |
| Jun 30, 2017 | 2.48 | 1.23 | 2.05 | — | 1.53 | — | 1.33 | 0.73 | 3.08 | — | 1.65 | 0.83 | 1.15 | 1.04 | 1.93 |
| Jun 30, 2016 | 2.35 | 1.35 | 2.08 | — | 1.20 | — | 1.21 | 0.72 | 3.74 | — | 2.03 | 0.77 | 1.25 | 1.00 | 2.56 |
| Jun 30, 2015 | 2.50 | 1.36 | 2.18 | — | 1.80 | — | 1.24 | 1.47 | 4.13 | — | 1.04 | 0.81 | 1.48 | 0.99 | 3.29 |
| Jun 30, 2014 | 2.50 | 1.46 | 1.85 | — | 1.33 | — | 1.25 | 1.84 | 3.35 | — | 2.75 | 0.67 | 1.79 | 1.09 | 4.80 |
| Jun 30, 2013 | 2.71 | 1.45 | 2.65 | — | 1.06 | — | 1.28 | 1.87 | 3.24 | — | 2.57 | 0.69 | 2.43 | 1.18 | 3.47 |
| Jun 30, 2012 | 2.60 | 1.55 | 3.41 | — | 1.14 | — | 1.13 | 1.20 | 2.60 | — | 3.13 | 0.72 | 1.99 | 0.91 | — |
| Jun 30, 2011 | 2.60 | 1.45 | 3.02 | — | 1.05 | — | 1.21 | 1.25 | 2.76 | — | — | 0.84 | — | 1.33 | — |
| Jun 30, 2010 | 2.13 | 1.46 | 3.01 | — | 1.26 | — | 1.19 | 1.88 | 1.84 | — | — | 1.88 | — | 1.35 | — |
| Jun 30, 2009 | 1.82 | 1.46 | 2.93 | — | 2.14 | — | 1.36 | 1.82 | 2.03 | — | — | 1.39 | — | 1.80 | — |
| Jun 30, 2008 | 1.45 | 1.34 | 3.59 | — | 1.69 | — | 1.15 | 1.21 | 1.81 | — | — | 1.22 | — | 1.45 | — |
| Jun 30, 2007 | 1.69 | 1.14 | 3.02 | — | 1.95 | — | 1.20 | 1.68 | 1.37 | — | — | 1.11 | — | 1.29 | — |
| Jun 30, 2006 | 2.18 | 1.26 | 4.26 | — | 2.39 | — | 1.11 | 1.79 | 1.73 | — | — | 1.29 | — | 1.03 | — |
| Jun 30, 2005 | 2.89 | 1.37 | 4.18 | — | 2.11 | — | 1.30 | 1.61 | 1.05 | — | — | 1.36 | — | 1.16 | — |
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Sector (Software & Services)
Microsoft Corp., current ratio, long-term trends, comparison to sector (software & services)
| Microsoft Corp. | Software & Services | |
|---|---|---|
| Jun 30, 2026 | 1.23 | — |
| Jun 30, 2025 | 1.35 | 1.25 |
| Jun 30, 2024 | 1.27 | 1.19 |
| Jun 30, 2023 | 1.77 | 1.40 |
| Jun 30, 2022 | 1.78 | 1.43 |
| Jun 30, 2021 | 2.08 | 1.68 |
| Jun 30, 2020 | 2.52 | 1.92 |
| Jun 30, 2019 | 2.53 | 1.84 |
| Jun 30, 2018 | 2.90 | 2.23 |
| Jun 30, 2017 | 2.48 | 2.06 |
| Jun 30, 2016 | 2.35 | 2.03 |
| Jun 30, 2015 | 2.50 | 2.15 |
| Jun 30, 2014 | 2.50 | 2.01 |
| Jun 30, 2013 | 2.71 | 2.04 |
| Jun 30, 2012 | 2.60 | 1.84 |
| Jun 30, 2011 | 2.60 | 1.87 |
| Jun 30, 2010 | 2.13 | 1.61 |
| Jun 30, 2009 | 1.82 | 1.62 |
| Jun 30, 2008 | 1.45 | 1.36 |
| Jun 30, 2007 | 1.69 | 1.38 |
| Jun 30, 2006 | 2.18 | 1.53 |
| Jun 30, 2005 | 2.89 | 1.70 |
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Industry (Information Technology)
Microsoft Corp., current ratio, long-term trends, comparison to industry (information technology)
| Microsoft Corp. | Information Technology | |
|---|---|---|
| Jun 30, 2026 | 1.23 | — |
| Jun 30, 2025 | 1.35 | 1.39 |
| Jun 30, 2024 | 1.27 | 1.24 |
| Jun 30, 2023 | 1.77 | 1.41 |
| Jun 30, 2022 | 1.78 | 1.37 |
| Jun 30, 2021 | 2.08 | 1.55 |
| Jun 30, 2020 | 2.52 | 1.71 |
| Jun 30, 2019 | 2.53 | 1.66 |
| Jun 30, 2018 | 2.90 | 1.88 |
| Jun 30, 2017 | 2.48 | 2.04 |
| Jun 30, 2016 | 2.35 | 2.01 |
| Jun 30, 2015 | 2.50 | 2.04 |
| Jun 30, 2014 | 2.50 | 1.98 |
| Jun 30, 2013 | 2.71 | 2.20 |
| Jun 30, 2012 | 2.60 | 2.08 |
| Jun 30, 2011 | 2.60 | 2.12 |
| Jun 30, 2010 | 2.13 | 2.02 |
| Jun 30, 2009 | 1.82 | 2.04 |
| Jun 30, 2008 | 1.45 | 1.80 |
| Jun 30, 2007 | 1.69 | 1.79 |
| Jun 30, 2006 | 2.18 | 1.86 |
| Jun 30, 2005 | 2.89 | 2.02 |
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).