Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Microsoft Corp. (NASDAQ:MSFT)

Analysis of Liquidity Ratios

Beginner level

Liquidity Ratios (Summary)

Microsoft Corp., liquidity ratios

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Current ratio 2.52 2.53 2.90 2.48 2.35 2.50
Quick ratio 2.33 2.35 2.74 2.37 2.22 2.30
Cash ratio 1.89 1.93 2.29 2.06 1.91 1.94

Based on: 10-K (filing date: 2020-07-31), 10-K (filing date: 2019-08-01), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Microsoft Corp.’s current ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Microsoft Corp.’s quick ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Microsoft Corp.’s cash ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Current Ratio

Microsoft Corp., current ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Selected Financial Data (US$ in millions)
Current assets 181,915  175,552  169,662  159,851  139,660  124,712 
Current liabilities 72,310  69,420  58,488  64,527  59,357  49,858 
Liquidity Ratio
Current ratio1 2.52 2.53 2.90 2.48 2.35 2.50
Benchmarks
Current Ratio, Competitors2
Accenture PLC 1.40 1.40 1.34 1.23 1.35 1.36
Adobe Inc. 1.48 0.79 1.13 2.05 2.08 2.18
Autodesk Inc. 0.83 0.70 0.88 1.13 1.88
Automatic Data Processing Inc. 1.05 1.05 1.05 1.10 1.10 1.06
Fidelity National Information Services Inc. 0.80 0.84 1.19 0.92 1.36
International Business Machines Corp. 0.98 1.02 1.29 1.33 1.21
Intuit Inc. 2.26 1.83 1.14 0.73 0.72 1.47
Mastercard Inc. 1.61 1.42 1.39 1.57 1.84
Oracle Corp. 3.03 2.49 3.96 3.08 3.74
PayPal Holdings Inc. 1.33 1.43 1.27 1.43 1.52
salesforce.com inc. 1.08 0.95 0.92 0.83 0.77
ServiceNow Inc. 1.21 1.03 1.17 1.15 1.25
Visa Inc. 1.91 1.56 1.61 1.90 1.78
Current Ratio, Sector
Software & Services 1.68 1.63 1.89 1.83 1.81
Current Ratio, Industry
Information Technology 1.71 1.65 1.75 1.90 1.88

Based on: 10-K (filing date: 2020-07-31), 10-K (filing date: 2019-08-01), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31).

1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 181,915 ÷ 72,310 = 2.52

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Microsoft Corp.’s current ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Quick Ratio

Microsoft Corp., quick ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Selected Financial Data (US$ in millions)
Cash and cash equivalents 13,576  11,356  11,946  7,663  6,510  5,595 
Short-term investments 122,951  122,463  121,822  125,318  106,730  90,931 
Accounts receivable, net of allowance for doubtful accounts 32,011  29,524  26,481  19,792  18,277  17,908 
Total quick assets 168,538  163,343  160,249  152,773  131,517  114,434 
 
Current liabilities 72,310  69,420  58,488  64,527  59,357  49,858 
Liquidity Ratio
Quick ratio1 2.33 2.35 2.74 2.37 2.22 2.30
Benchmarks
Quick Ratio, Competitors2
Accenture PLC 1.29 1.29 1.24 1.12 1.25 1.18
Adobe Inc. 1.34 0.70 1.06 2.00 1.99 2.11
Autodesk Inc. 0.78 0.62 0.83 1.08 1.83
Automatic Data Processing Inc. 0.14 0.13 0.14 0.15 0.14 0.12
Fidelity National Information Services Inc. 0.78 0.81 1.10 0.85 0.98
International Business Machines Corp. 0.83 0.87 1.12 1.19 1.04
Intuit Inc. 2.04 1.44 0.86 0.45 0.53 1.03
Mastercard Inc. 1.45 1.27 1.27 1.45 1.72
Oracle Corp. 2.83 2.31 3.78 2.95 3.57
PayPal Holdings Inc. 1.30 1.40 1.24 1.40 1.48
salesforce.com inc. 0.95 0.82 0.83 0.74 0.68
ServiceNow Inc. 1.10 0.92 1.03 1.05 1.14
Visa Inc. 1.77 1.45 1.53 1.81 1.67
Quick Ratio, Sector
Software & Services 1.46 1.39 1.65 1.61 1.53
Quick Ratio, Industry
Information Technology 1.46 1.40 1.50 1.66 1.60

Based on: 10-K (filing date: 2020-07-31), 10-K (filing date: 2019-08-01), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31).

1 2020 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 168,538 ÷ 72,310 = 2.33

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Microsoft Corp.’s quick ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Cash Ratio

Microsoft Corp., cash ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Selected Financial Data (US$ in millions)
Cash and cash equivalents 13,576  11,356  11,946  7,663  6,510  5,595 
Short-term investments 122,951  122,463  121,822  125,318  106,730  90,931 
Total cash assets 136,527  133,819  133,768  132,981  113,240  96,526 
 
Current liabilities 72,310  69,420  58,488  64,527  59,357  49,858 
Liquidity Ratio
Cash ratio1 1.89 1.93 2.29 2.06 1.91 1.94
Benchmarks
Cash Ratio, Competitors2
Accenture PLC 0.67 0.55 0.50 0.42 0.55 0.51
Adobe Inc. 1.09 0.51 0.75 1.65 1.69 1.80
Autodesk Inc. 0.57 0.41 0.62 0.87 1.41
Automatic Data Processing Inc. 0.06 0.06 0.07 0.09 0.09 0.06
Fidelity National Information Services Inc. 0.42 0.39 0.45 0.34 0.38
International Business Machines Corp. 0.36 0.24 0.32 0.34 0.24
Intuit Inc. 2.00 1.39 0.81 0.40 0.48 0.97
Mastercard Inc. 1.09 0.81 0.86 1.07 1.37
Oracle Corp. 2.50 2.03 3.50 2.73 3.26
PayPal Holdings Inc. 1.21 1.24 1.13 1.05 1.15
salesforce.com inc. 0.54 0.39 0.45 0.30 0.24
ServiceNow Inc. 0.83 0.61 0.74 0.85 0.84
Visa Inc. 1.57 1.11 1.28 1.56 1.36
Cash Ratio, Sector
Software & Services 1.13 1.02 1.26 1.23 1.15
Cash Ratio, Industry
Information Technology 1.10 1.01 1.08 1.28 1.22

Based on: 10-K (filing date: 2020-07-31), 10-K (filing date: 2019-08-01), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31).

1 2020 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 136,527 ÷ 72,310 = 1.89

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Microsoft Corp.’s cash ratio deteriorated from 2018 to 2019 and from 2019 to 2020.