Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

Analysis of Liquidity Ratios 

Microsoft Excel

Liquidity Ratios (Summary)

Microsoft Corp., liquidity ratios

Microsoft Excel
Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017
Current ratio 1.78 2.08 2.52 2.53 2.90 2.48
Quick ratio 1.57 1.90 2.33 2.35 2.74 2.37
Cash ratio 1.10 1.47 1.89 1.93 2.29 2.06

Based on: 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).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Microsoft Corp. current ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
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 2020 to 2021 and from 2021 to 2022.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Microsoft Corp. cash ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Current Ratio

Microsoft Corp., current ratio calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017
Selected Financial Data (US$ in millions)
Current assets 169,684 184,406 181,915 175,552 169,662 159,851
Current liabilities 95,082 88,657 72,310 69,420 58,488 64,527
Liquidity Ratio
Current ratio1 1.78 2.08 2.52 2.53 2.90 2.48
Benchmarks
Current Ratio, Competitors2
Accenture PLC 1.23 1.25 1.40 1.40 1.34 1.23
Adobe Inc. 1.11 1.25 1.48 0.79 1.13 2.05
Fidelity National Information Services Inc. 0.74 0.80 0.84 1.19 0.92
International Business Machines Corp. 0.88 0.98 1.02 1.29 1.33
Intuit Inc. 1.39 1.94 2.26 1.83 1.14 0.73
Mastercard Inc. 1.29 1.61 1.42 1.39 1.57
Oracle Corp. 1.62 2.30 3.03 2.49 3.96 3.08
PayPal Holdings Inc. 1.22 1.33 1.43 1.27 1.43
Salesforce Inc. 1.05 1.23 1.08 0.95 0.92 0.83
ServiceNow Inc. 1.05 1.21 1.03 1.17 1.15
Visa Inc. 1.45 1.75 1.91 1.56 1.61 1.90
Current Ratio, Sector
Software & Services 1.56 1.76 1.72 2.03
Current Ratio, Industry
Information Technology 1.58 1.77 1.71 1.82

Based on: 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).

1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 169,684 ÷ 95,082 = 1.78

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 2020 to 2021 and from 2021 to 2022.

Quick Ratio

Microsoft Corp., quick ratio calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017
Selected Financial Data (US$ in millions)
Cash and cash equivalents 13,931 14,224 13,576 11,356 11,946 7,663
Short-term investments 90,826 116,110 122,951 122,463 121,822 125,318
Accounts receivable, net of allowance for doubtful accounts 44,261 38,043 32,011 29,524 26,481 19,792
Total quick assets 149,018 168,377 168,538 163,343 160,249 152,773
 
Current liabilities 95,082 88,657 72,310 69,420 58,488 64,527
Liquidity Ratio
Quick ratio1 1.57 1.90 2.33 2.35 2.74 2.37
Benchmarks
Quick Ratio, Competitors2
Accenture PLC 1.12 1.14 1.29 1.29 1.24 1.12
Adobe Inc. 1.00 1.11 1.34 0.70 1.06 2.00
Fidelity National Information Services Inc. 0.70 0.77 0.80 1.06 0.85
International Business Machines Corp. 0.67 0.83 0.87 1.12 1.19
Intuit Inc. 1.17 1.65 2.04 1.44 0.86 0.45
Mastercard Inc. 1.12 1.45 1.27 1.27 1.45
Oracle Corp. 1.43 2.15 2.83 2.31 3.78 2.95
PayPal Holdings Inc. 1.19 1.30 1.40 1.24 1.40
Salesforce Inc. 0.93 1.11 0.95 0.82 0.83 0.74
ServiceNow Inc. 0.95 1.10 0.92 1.03 1.05
Visa Inc. 1.26 1.61 1.77 1.45 1.53 1.81
Quick Ratio, Sector
Software & Services 1.42 1.63 1.58 1.89
Quick Ratio, Industry
Information Technology 1.35 1.55 1.51 1.62

Based on: 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).

1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 149,018 ÷ 95,082 = 1.57

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 2020 to 2021 and from 2021 to 2022.

Cash Ratio

Microsoft Corp., cash ratio calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017
Selected Financial Data (US$ in millions)
Cash and cash equivalents 13,931 14,224 13,576 11,356 11,946 7,663
Short-term investments 90,826 116,110 122,951 122,463 121,822 125,318
Total cash assets 104,757 130,334 136,527 133,819 133,768 132,981
 
Current liabilities 95,082 88,657 72,310 69,420 58,488 64,527
Liquidity Ratio
Cash ratio1 1.10 1.47 1.89 1.93 2.29 2.06
Benchmarks
Cash Ratio, Competitors2
Accenture PLC 0.45 0.52 0.67 0.55 0.50 0.42
Adobe Inc. 0.75 0.84 1.09 0.51 0.75 1.65
Fidelity National Information Services Inc. 0.14 0.16 0.11 0.22 0.17
International Business Machines Corp. 0.22 0.36 0.24 0.32 0.34
Intuit Inc. 0.90 1.46 2.00 1.39 0.81 0.40
Mastercard Inc. 0.79 1.09 0.81 0.86 1.07
Oracle Corp. 1.12 1.93 2.50 2.03 3.50 2.73
PayPal Holdings Inc. 1.06 1.21 1.24 1.13 1.05
Salesforce Inc. 0.48 0.67 0.54 0.39 0.45 0.30
ServiceNow Inc. 0.67 0.83 0.61 0.74 0.85
Visa Inc. 1.07 1.38 1.57 1.11 1.28 1.56
Cash Ratio, Sector
Software & Services 1.06 1.26 1.16 1.44
Cash Ratio, Industry
Information Technology 0.96 1.17 1.09 1.17

Based on: 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).

1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 104,757 ÷ 95,082 = 1.10

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 2020 to 2021 and from 2021 to 2022.