Liquidity ratios measure the company’s ability to meet its short-term obligations.

Microsoft Corp., liquidity ratios

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Microsoft Corp.’s current ratio improved from 2016 to 2017 and from 2017 to 2018.
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	Microsoft Corp.’s quick ratio improved from 2016 to 2017 and from 2017 to 2018.
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Microsoft Corp.’s cash ratio improved from 2016 to 2017 and from 2017 to 2018.

Microsoft Corp., current ratio calculation, comparison to benchmarks

		Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014	Jun 30, 2013
	Selected Financial Data (USD $ in millions)
	Current assets
	Current liabilities
	Ratio
	Current ratio¹
	Benchmarks
	Current Ratio, Competitors
	Adobe Inc.
	Alphabet Inc.
	Facebook Inc.
	International Business Machines Corp.
	Oracle Corp.
	salesforce.com inc.
	Current Ratio, Sector
	Software & Computer Services
	Current Ratio, Industry
	Technology

2018 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= hidden ÷ hidden = hidden

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Microsoft Corp.’s current ratio improved from 2016 to 2017 and from 2017 to 2018.

Microsoft Corp., quick ratio calculation, comparison to benchmarks

		Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014	Jun 30, 2013
	Selected Financial Data (USD $ in millions)
	Cash and cash equivalents
	Short-term investments
	Accounts receivable, net of allowance for doubtful accounts
	Total quick assets
	Current liabilities
	Ratio
	Quick ratio¹
	Benchmarks
	Quick Ratio, Competitors
	Adobe Inc.
	Alphabet Inc.
	Facebook Inc.
	International Business Machines Corp.
	Oracle Corp.
	salesforce.com inc.
	Quick Ratio, Sector
	Software & Computer Services
	Quick Ratio, Industry
	Technology

2018 Calculations

¹ Quick ratio = Total quick assets ÷ Current liabilities
= hidden ÷ hidden = hidden

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 improved from 2016 to 2017 and from 2017 to 2018.

Microsoft Corp., cash ratio calculation, comparison to benchmarks

		Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014	Jun 30, 2013
	Selected Financial Data (USD $ in millions)
	Cash and cash equivalents
	Short-term investments
	Total cash assets
	Current liabilities
	Ratio
	Cash ratio¹
	Benchmarks
	Cash Ratio, Competitors
	Adobe Inc.
	Alphabet Inc.
	Facebook Inc.
	International Business Machines Corp.
	Oracle Corp.
	salesforce.com inc.
	Cash Ratio, Sector
	Software & Computer Services
	Cash Ratio, Industry
	Technology

2018 Calculations

¹ Cash ratio = Total cash assets ÷ Current liabilities
= hidden ÷ hidden = hidden

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 improved from 2016 to 2017 and from 2017 to 2018.

	Microsoft Corp.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

Microsoft Corp. (MSFT)

Liquidity Analysis