Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Microsoft Corp., liquidity ratios
Based on: 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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Microsoft Corp. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Microsoft Corp. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Microsoft Corp. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Current Ratio
Microsoft Corp., current ratio calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 184,257) | 169,684) | 184,406) | 181,915) | 175,552) | 169,662) | |
| Current liabilities | 104,149) | 95,082) | 88,657) | 72,310) | 69,420) | 58,488) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.77 | 1.78 | 2.08 | 2.52 | 2.53 | 2.90 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Accenture PLC | 1.30 | 1.23 | 1.25 | 1.40 | 1.40 | 1.34 | |
| Adobe Inc. | 1.34 | 1.11 | 1.25 | 1.48 | 0.79 | 1.13 | |
| International Business Machines Corp. | 0.96 | 0.92 | 0.88 | 0.98 | 1.02 | — | |
| Intuit Inc. | 1.47 | 1.39 | 1.94 | 2.26 | 1.83 | 1.14 | |
| Oracle Corp. | 0.91 | 1.62 | 2.30 | 3.03 | 2.49 | 3.96 | |
| Palo Alto Networks Inc. | 0.78 | 0.77 | 0.91 | 1.91 | 1.78 | 1.93 | |
| Salesforce Inc. | 1.02 | 1.05 | 1.23 | 1.08 | 0.95 | — | |
| ServiceNow Inc. | 1.06 | 1.11 | 1.05 | 1.21 | 1.03 | — | |
| Synopsys Inc. | 1.15 | 1.09 | 1.16 | 1.19 | 0.99 | 0.73 | |
| Current Ratio, Sector | |||||||
| Software & Services | 1.37 | 1.42 | 1.67 | 1.92 | 1.85 | — | |
| Current Ratio, Industry | |||||||
| Information Technology | 1.46 | 1.44 | 1.64 | 1.85 | 1.77 | — | |
Based on: 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).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 184,257 ÷ 104,149 = 1.77
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. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Quick Ratio
Microsoft Corp., quick ratio calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 34,704) | 13,931) | 14,224) | 13,576) | 11,356) | 11,946) | |
| Short-term investments | 76,558) | 90,826) | 116,110) | 122,951) | 122,463) | 121,822) | |
| Accounts receivable, net of allowance for doubtful accounts | 48,688) | 44,261) | 38,043) | 32,011) | 29,524) | 26,481) | |
| Total quick assets | 159,950) | 149,018) | 168,377) | 168,538) | 163,343) | 160,249) | |
| Current liabilities | 104,149) | 95,082) | 88,657) | 72,310) | 69,420) | 58,488) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 1.54 | 1.57 | 1.90 | 2.33 | 2.35 | 2.74 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Accenture PLC | 1.18 | 1.12 | 1.14 | 1.29 | 1.29 | 1.24 | |
| Adobe Inc. | 1.22 | 1.00 | 1.11 | 1.34 | 0.70 | 1.06 | |
| International Business Machines Corp. | 0.80 | 0.73 | 0.67 | 0.83 | 0.87 | — | |
| Intuit Inc. | 1.25 | 1.17 | 1.65 | 2.04 | 1.44 | 0.86 | |
| Oracle Corp. | 0.74 | 1.43 | 2.15 | 2.83 | 2.31 | 3.78 | |
| Palo Alto Networks Inc. | 0.72 | 0.75 | 0.88 | 1.85 | 1.72 | 1.81 | |
| Salesforce Inc. | 0.90 | 0.93 | 1.11 | 0.95 | 0.82 | — | |
| ServiceNow Inc. | 1.00 | 1.06 | 1.01 | 1.16 | 0.98 | — | |
| Synopsys Inc. | 0.85 | 0.85 | 0.89 | 0.94 | 0.73 | 0.61 | |
| Quick Ratio, Sector | |||||||
| Software & Services | 1.19 | 1.25 | 1.51 | 1.76 | 1.69 | — | |
| Quick Ratio, Industry | |||||||
| Information Technology | 1.17 | 1.15 | 1.38 | 1.60 | 1.55 | — | |
Based on: 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).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 159,950 ÷ 104,149 = 1.54
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. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Cash Ratio
Microsoft Corp., cash ratio calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 34,704) | 13,931) | 14,224) | 13,576) | 11,356) | 11,946) | |
| Short-term investments | 76,558) | 90,826) | 116,110) | 122,951) | 122,463) | 121,822) | |
| Total cash assets | 111,262) | 104,757) | 130,334) | 136,527) | 133,819) | 133,768) | |
| Current liabilities | 104,149) | 95,082) | 88,657) | 72,310) | 69,420) | 58,488) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 1.07 | 1.10 | 1.47 | 1.89 | 1.93 | 2.29 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Accenture PLC | 0.50 | 0.45 | 0.52 | 0.67 | 0.55 | 0.50 | |
| Adobe Inc. | 0.95 | 0.75 | 0.84 | 1.09 | 0.51 | 0.75 | |
| International Business Machines Corp. | 0.39 | 0.28 | 0.22 | 0.36 | 0.24 | — | |
| Intuit Inc. | 0.97 | 0.90 | 1.46 | 2.00 | 1.39 | 0.81 | |
| Oracle Corp. | 0.44 | 1.12 | 1.93 | 2.50 | 2.03 | 3.50 | |
| Palo Alto Networks Inc. | 0.31 | 0.44 | 0.57 | 1.39 | 1.37 | 1.59 | |
| Salesforce Inc. | 0.48 | 0.48 | 0.67 | 0.54 | 0.39 | — | |
| ServiceNow Inc. | 0.66 | 0.71 | 0.67 | 0.83 | 0.61 | — | |
| Synopsys Inc. | 0.53 | 0.56 | 0.65 | 0.58 | 0.42 | 0.34 | |
| Cash Ratio, Sector | |||||||
| Software & Services | 0.75 | 0.81 | 1.10 | 1.33 | 1.23 | — | |
| Cash Ratio, Industry | |||||||
| Information Technology | 0.75 | 0.72 | 0.96 | 1.19 | 1.11 | — | |
Based on: 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).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 111,262 ÷ 104,149 = 1.07
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. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |