Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Microsoft Corp., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
The liquidity ratios over the observed quarterly periods indicate a general declining trend across all three metrics: current ratio, quick ratio, and cash ratio.
- Current Ratio
-
The current ratio starts at a relatively high value of 2.85 in September 2019, reflecting strong short-term liquidity. It fluctuates downward over time, reaching a lower threshold around 1.22 by December 2023. From that point, the ratio stabilizes slightly, maintaining values in the range of approximately 1.24 to 1.37 through June 2025.
This decrease indicates a gradual reduction in the organization's buffer of current assets over current liabilities, suggesting a tighter liquidity position in recent quarters compared to earlier periods.
- Quick Ratio
-
The quick ratio follows a similar downward trend, beginning at 2.68 in September 2019 and decreasing steadily to about 1.02 by December 2023. Subsequent quarters show a moderate recovery with the ratio rising slightly to around 1.15 to 1.16 by June 2025.
This pattern suggests a decrease in immediately liquid assets relative to current liabilities through most of the period, with a mild improvement toward the end, signifying potentially improved management of liquid assets or changes in current liabilities structure.
- Cash Ratio
-
The cash ratio exhibits the most pronounced decline among the three liquidity ratios. Starting at 2.35 in September 2019, it drops sharply to a low of approximately 0.6 by September 2024. Thereafter, it experiences slight fluctuations but remains below 0.7 until June 2025.
This substantial decrease points to a significant reduction in cash and cash equivalents relative to current liabilities, indicating a more constrained cash position. The persistently low cash ratio in the latter periods may warrant attention regarding the company's immediate liquidity risk.
Overall, the trend across all liquidity ratios reflects a progressive tightening of liquidity from 2019 through 2024. While the company retains a current ratio above 1 in all periods, the decreasing levels suggest a declining cushion of liquid assets. The marked drop in the cash ratio specifically highlights a potential increase in reliance on less liquid current assets or a growth in current liabilities. The slight improvements in quick and current ratios starting around late 2023 may indicate early signs of stabilization or corrective actions to reinforce liquidity.
Current Ratio
Microsoft Corp., current ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Current assets | 191,131) | 156,644) | 147,080) | 149,926) | 159,734) | 147,180) | 147,393) | 207,586) | 184,257) | 163,889) | 157,823) | 160,812) | 169,684) | 153,922) | 174,188) | 174,326) | 184,406) | 165,614) | 173,973) | 177,077) | 181,915) | 170,505) | 167,074) | 165,896) | |||||||
| Current liabilities | 141,218) | 114,206) | 108,882) | 115,200) | 125,286) | 118,525) | 121,016) | 124,792) | 104,149) | 85,691) | 81,718) | 87,389) | 95,082) | 77,439) | 77,510) | 80,528) | 88,657) | 72,193) | 67,486) | 70,056) | 72,310) | 58,707) | 59,640) | 58,118) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||
| Current ratio1 | 1.35 | 1.37 | 1.35 | 1.30 | 1.27 | 1.24 | 1.22 | 1.66 | 1.77 | 1.91 | 1.93 | 1.84 | 1.78 | 1.99 | 2.25 | 2.16 | 2.08 | 2.29 | 2.58 | 2.53 | 2.52 | 2.90 | 2.80 | 2.85 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||||
| Accenture PLC | — | 1.46 | 1.48 | 1.47 | 1.10 | 1.16 | 1.26 | 1.33 | 1.30 | 1.37 | 1.29 | 1.26 | 1.23 | 1.27 | 1.23 | 1.22 | 1.25 | 1.42 | 1.39 | 1.45 | 1.40 | 1.37 | 1.38 | 1.39 | |||||||
| Adobe Inc. | — | — | 0.99 | 1.18 | 1.07 | 1.11 | 1.16 | 1.05 | 1.34 | 1.25 | 1.16 | 1.12 | 1.11 | 1.14 | 1.07 | 1.04 | 1.25 | 1.39 | 1.31 | 1.27 | 1.48 | 1.44 | 1.29 | 1.23 | |||||||
| Cadence Design Systems Inc. | — | — | 2.82 | 3.07 | 2.93 | 2.45 | 1.43 | 1.32 | 1.24 | 1.44 | 1.37 | 1.44 | 1.27 | 1.33 | 1.59 | 1.81 | 1.77 | 1.70 | 1.57 | 1.70 | 1.86 | 1.55 | 1.42 | 1.38 | |||||||
| CrowdStrike Holdings Inc. | 1.77 | 1.86 | 1.90 | 1.80 | 1.76 | 1.74 | 1.82 | 1.78 | 1.73 | 1.76 | 1.80 | 1.83 | 1.83 | 1.90 | 1.98 | 2.07 | 2.65 | 1.91 | 2.18 | 2.25 | 2.38 | 2.53 | 2.94 | 1.03 | |||||||
| Datadog Inc. | — | — | 3.43 | 2.74 | 2.64 | 2.13 | 2.01 | 3.43 | 3.17 | 3.35 | 3.42 | 3.19 | 3.09 | 3.23 | 3.31 | 3.33 | 3.54 | 3.94 | 4.31 | 5.45 | 5.77 | 6.49 | 6.74 | 4.43 | |||||||
| Fair Isaac Corp. | — | 0.92 | 2.11 | 1.80 | 1.62 | 1.87 | 2.04 | 1.31 | 1.51 | 1.46 | 1.40 | 1.36 | 1.46 | 1.23 | 1.26 | 1.44 | 0.99 | 1.02 | 1.10 | 1.30 | 1.29 | 1.05 | 1.01 | 1.04 | |||||||
| International Business Machines Corp. | — | — | 0.91 | 1.01 | 1.04 | 1.06 | 1.12 | 1.13 | 0.96 | 0.91 | 1.06 | 1.16 | 0.92 | 0.95 | 0.88 | 0.92 | 0.88 | 0.84 | 0.84 | 0.93 | 0.98 | 1.05 | 1.04 | 0.96 | |||||||
| Intuit Inc. | — | 1.45 | 1.27 | 1.24 | 1.29 | 1.50 | 1.17 | 1.25 | 1.47 | 1.51 | 1.23 | 1.37 | 1.39 | 1.63 | 1.18 | 2.10 | 1.94 | 1.96 | 1.53 | 3.09 | 2.26 | 1.79 | 1.67 | 1.80 | |||||||
| Oracle Corp. | 0.75 | 1.02 | 0.81 | 0.72 | 0.72 | 0.85 | 0.79 | 0.87 | 0.91 | 0.82 | 0.65 | 0.60 | 1.62 | 1.52 | 1.65 | 2.04 | 2.30 | 2.16 | 2.17 | 2.66 | 3.03 | 2.12 | 2.37 | 2.25 | |||||||
| Palantir Technologies Inc. | — | — | 6.32 | 6.49 | 5.96 | 5.67 | 5.92 | 5.91 | 5.55 | 5.53 | 5.22 | 5.41 | 5.17 | 4.28 | 4.36 | 4.38 | 4.34 | 4.13 | 3.90 | 3.88 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | — | 0.90 | 0.84 | 0.84 | 0.89 | 0.84 | 0.83 | 0.86 | 0.78 | 0.74 | 0.64 | 0.70 | 0.77 | 0.74 | 0.66 | 0.68 | 0.91 | 1.38 | 0.98 | 1.63 | 1.91 | 1.29 | 1.78 | 1.78 | |||||||
| Salesforce Inc. | 1.06 | 1.11 | 1.04 | 1.11 | 1.09 | 1.04 | 1.02 | 1.02 | 1.02 | 1.05 | 1.06 | 1.03 | 1.05 | 1.06 | 0.93 | 1.33 | 1.23 | 1.22 | 1.15 | 1.15 | 1.08 | 1.05 | 0.97 | 0.96 | |||||||
| ServiceNow Inc. | — | — | 1.09 | 1.12 | 1.10 | 1.13 | 1.12 | 1.05 | 1.06 | 1.08 | 1.14 | 1.17 | 1.11 | 1.24 | 1.12 | 1.12 | 1.05 | 1.13 | 1.08 | 1.23 | 1.21 | 1.40 | 1.17 | 1.03 | |||||||
| Synopsys Inc. | — | — | 7.02 | 2.68 | 2.44 | 2.02 | 1.86 | 1.29 | 1.15 | 1.20 | 1.15 | 1.11 | 1.09 | 1.14 | 1.25 | 1.19 | 1.16 | 1.18 | 1.19 | 1.10 | 1.19 | 1.06 | 0.95 | 0.95 | |||||||
| Workday Inc. | 1.90 | 2.05 | 2.04 | 2.00 | 1.97 | 2.13 | 2.00 | 1.95 | 1.75 | 1.87 | 1.61 | 1.56 | 1.03 | 1.10 | 1.04 | 0.93 | 1.12 | 1.09 | 1.45 | 1.25 | 1.04 | 1.19 | 0.81 | 1.09 | |||||||
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
1 Q4 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 191,131 ÷ 141,218 = 1.35
2 Click competitor name to see calculations.
The quarterly financial data reveal notable trends in both current assets and current liabilities over time, impacting the current ratio significantly. There is an observable fluctuation in current assets, with values peaking intermittently and then declining. Initially, current assets rise from approximately 166 billion US dollars in September 2019 to a high near 184 billion US dollars in June 2021, followed by a decline reaching a trough around 147 billion US dollars in late 2023 and early 2024. Subsequently, current assets appear to recover towards the end of the period analyzed, reaching about 191 billion US dollars by June 2025.
Current liabilities show a general increasing trend with some variability. Starting from around 58 billion US dollars in September 2019, current liabilities increase sharply through mid-2021, reaching a peak of approximately 125 billion US dollars in late 2024, with fluctuations evident thereafter. This increase in liabilities is more pronounced compared to the moderate variations in assets.
The current ratio, which measures liquidity by comparing current assets to current liabilities, exhibits a clear declining trend throughout the observed periods. It starts at a high of approximately 2.85 in September 2019, then steadily decreases, reaching values near 1.2 to 1.3 in the years 2023 and 2024. This downward trend indicates a reduction in short-term liquidity over time, suggesting increasing pressure on the company’s ability to cover current liabilities with current assets. Although there is a minor improvement in the ratio towards the most recent quarters, it remains significantly lower than the initial levels.
- Current Assets
- Fluctuate with a peak around mid-2021, a decline through 2023, followed by recovery towards mid-2025.
- Current Liabilities
- Show a rising trend overall, with sharp increases through 2021 to 2024, indicating growing short-term obligations.
- Current Ratio
- Declines steadily from almost 3.0 to near 1.3, reflecting decreased liquidity and potential increased risk of short-term financial stress, despite small improvements recently.
Quick Ratio
Microsoft Corp., quick ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Cash and cash equivalents | 30,242) | 28,828) | 17,482) | 20,840) | 18,315) | 19,634) | 17,305) | 80,452) | 34,704) | 26,562) | 15,646) | 22,884) | 13,931) | 12,498) | 20,604) | 19,165) | 14,224) | 13,702) | 14,432) | 17,205) | 13,576) | 11,710) | 8,864) | 13,117) | |||||||
| Short-term investments | 64,323) | 50,790) | 54,073) | 57,588) | 57,228) | 60,387) | 63,712) | 63,499) | 76,558) | 77,865) | 83,862) | 84,378) | 90,826) | 92,195) | 104,765) | 111,450) | 116,110) | 111,705) | 117,536) | 120,772) | 122,951) | 125,916) | 125,389) | 123,519) | |||||||
| Accounts receivable, net of allowance for doubtful accounts | 69,905) | 51,700) | 48,188) | 44,148) | 56,924) | 44,029) | 42,831) | 36,953) | 48,688) | 37,420) | 35,833) | 31,279) | 44,261) | 32,613) | 33,520) | 27,349) | 38,043) | 26,322) | 27,312) | 22,851) | 32,011) | 22,699) | 23,525) | 19,087) | |||||||
| Total quick assets | 164,470) | 131,318) | 119,743) | 122,576) | 132,467) | 124,050) | 123,848) | 180,904) | 159,950) | 141,847) | 135,341) | 138,541) | 149,018) | 137,306) | 158,889) | 157,964) | 168,377) | 151,729) | 159,280) | 160,828) | 168,538) | 160,325) | 157,778) | 155,723) | |||||||
| Current liabilities | 141,218) | 114,206) | 108,882) | 115,200) | 125,286) | 118,525) | 121,016) | 124,792) | 104,149) | 85,691) | 81,718) | 87,389) | 95,082) | 77,439) | 77,510) | 80,528) | 88,657) | 72,193) | 67,486) | 70,056) | 72,310) | 58,707) | 59,640) | 58,118) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||
| Quick ratio1 | 1.16 | 1.15 | 1.10 | 1.06 | 1.06 | 1.05 | 1.02 | 1.45 | 1.54 | 1.66 | 1.66 | 1.59 | 1.57 | 1.77 | 2.05 | 1.96 | 1.90 | 2.10 | 2.36 | 2.30 | 2.33 | 2.73 | 2.65 | 2.68 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||||
| Accenture PLC | — | 1.32 | 1.33 | 1.33 | 0.98 | 1.03 | 1.13 | 1.18 | 1.18 | 1.24 | 1.15 | 1.12 | 1.12 | 1.14 | 1.10 | 1.10 | 1.14 | 1.31 | 1.27 | 1.34 | 1.29 | 1.25 | 1.25 | 1.28 | |||||||
| Adobe Inc. | — | — | 0.82 | 1.03 | 0.95 | 0.97 | 1.02 | 0.93 | 1.22 | 1.12 | 1.03 | 1.00 | 1.00 | 1.01 | 0.93 | 0.89 | 1.11 | 1.25 | 1.18 | 1.12 | 1.34 | 1.28 | 1.11 | 1.06 | |||||||
| Cadence Design Systems Inc. | — | — | 2.33 | 2.58 | 2.43 | 2.00 | 1.06 | 0.96 | 0.94 | 1.10 | 1.10 | 1.19 | 1.02 | 1.13 | 1.36 | 1.56 | 1.47 | 1.48 | 1.33 | 1.43 | 1.59 | 1.44 | 1.30 | 1.22 | |||||||
| CrowdStrike Holdings Inc. | 1.58 | 1.69 | 1.72 | 1.64 | 1.60 | 1.59 | 1.66 | 1.63 | 1.58 | 1.62 | 1.66 | 1.68 | 1.68 | 1.76 | 1.81 | 1.93 | 2.50 | 1.76 | 2.01 | 2.07 | 2.18 | 2.36 | 2.76 | 0.87 | |||||||
| Datadog Inc. | — | — | 3.34 | 2.66 | 2.57 | 2.07 | 1.95 | 3.32 | 3.08 | 3.26 | 3.31 | 3.09 | 3.01 | 3.14 | 3.21 | 3.23 | 3.45 | 3.84 | 4.19 | 5.31 | 5.64 | 6.35 | 6.59 | 4.29 | |||||||
| Fair Isaac Corp. | — | 0.83 | 1.86 | 1.62 | 1.52 | 1.76 | 1.92 | 1.22 | 1.43 | 1.39 | 1.28 | 1.26 | 1.37 | 1.15 | 1.17 | 1.31 | 0.91 | 0.95 | 0.92 | 1.16 | 1.19 | 0.93 | 0.87 | 0.89 | |||||||
| International Business Machines Corp. | — | — | 0.77 | 0.86 | 0.90 | 0.89 | 0.95 | 0.98 | 0.82 | 0.74 | 0.90 | 0.99 | 0.76 | 0.75 | 0.68 | 0.73 | 0.69 | 0.64 | 0.66 | 0.75 | 0.83 | 0.88 | 0.88 | 0.80 | |||||||
| Intuit Inc. | — | 0.85 | 0.68 | 0.54 | 0.71 | 1.00 | 0.55 | 0.66 | 1.25 | 1.29 | 1.02 | 1.10 | 1.17 | 1.29 | 0.78 | 1.71 | 1.60 | 1.72 | 1.20 | 2.74 | 2.04 | 1.54 | 1.30 | 1.34 | |||||||
| Oracle Corp. | 0.61 | 0.87 | 0.67 | 0.59 | 0.59 | 0.69 | 0.63 | 0.73 | 0.74 | 0.65 | 0.50 | 0.49 | 1.43 | 1.34 | 1.45 | 1.90 | 2.15 | 2.00 | 2.02 | 2.50 | 2.83 | 1.91 | 2.16 | 2.09 | |||||||
| Palantir Technologies Inc. | — | — | 6.19 | 6.36 | 5.83 | 5.55 | 5.77 | 5.80 | 5.41 | 5.39 | 5.08 | 5.25 | 4.92 | 4.08 | 4.09 | 4.15 | 4.11 | 3.90 | 3.79 | 3.73 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | — | 0.83 | 0.78 | 0.77 | 0.82 | 0.78 | 0.78 | 0.81 | 0.72 | 0.66 | 0.58 | 0.65 | 0.73 | 0.70 | 0.62 | 0.64 | 0.86 | 1.23 | 0.88 | 1.48 | 1.78 | 1.16 | 1.64 | 1.64 | |||||||
| Salesforce Inc. | 0.93 | 0.90 | 0.86 | 0.95 | 0.96 | 0.86 | 0.86 | 0.86 | 0.90 | 0.89 | 0.91 | 0.88 | 0.93 | 0.89 | 0.79 | 1.19 | 1.11 | 1.05 | 0.98 | 1.00 | 0.95 | 0.87 | 0.82 | 0.81 | |||||||
| ServiceNow Inc. | — | — | 0.99 | 1.03 | 1.02 | 1.05 | 1.03 | 0.98 | 1.00 | 1.01 | 1.08 | 1.11 | 1.06 | 1.17 | 1.06 | 1.06 | 1.01 | 1.07 | 1.03 | 1.19 | 1.16 | 1.33 | 1.11 | 0.98 | |||||||
| Synopsys Inc. | — | — | 6.34 | 1.99 | 1.88 | 1.10 | 0.99 | 0.88 | 0.85 | 0.92 | 0.90 | 0.86 | 0.85 | 0.87 | 0.99 | 0.93 | 0.89 | 0.90 | 0.92 | 0.83 | 0.94 | 0.82 | 0.73 | 0.73 | |||||||
| Workday Inc. | 1.80 | 1.94 | 1.92 | 1.88 | 1.87 | 2.01 | 1.90 | 1.83 | 1.66 | 1.75 | 1.52 | 1.47 | 0.96 | 1.03 | 0.98 | 0.86 | 1.07 | 1.02 | 1.35 | 1.15 | 0.95 | 1.09 | 0.74 | 1.00 | |||||||
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
1 Q4 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 164,470 ÷ 141,218 = 1.16
2 Click competitor name to see calculations.
The quarterly financial data indicates significant fluctuations in key liquidity metrics over the analyzed period. The total quick assets, measured in millions of US dollars, demonstrate variability with an overall tendency to oscillate rather than follow a linear trend. Starting at approximately 155.7 billion in September 2019, the value peaks notably in June 2021 at roughly 168.4 billion before exhibiting a pronounced decline in subsequent quarters, reaching a low around 123.8 billion by December 2023. However, a recovery trend is observable from March 2024 onwards, culminating at approximately 164.5 billion by June 2025.
Current liabilities also display a general upward movement with intermittent declines. The value rises from about 58.1 billion in September 2019 to exceed 124.7 billion by June 2021. A marginal decrease follows, after which liabilities reach a new maximum of roughly 141.2 billion by June 2025. This growth in liabilities over time suggests increasing short-term obligations on the company’s balance sheet.
The quick ratio, an essential indicator of short-term liquidity, reflects these trends in assets and liabilities. Starting at a robust level of 2.68 in September 2019, this ratio experiences a steady decline with brief periods of stabilization. It falls below 2.0 by mid-2020 and continues to decrease, reaching a minimum close to 1.02 in June 2023. Thereafter, a gradual improvement is evident, with the ratio increasing to about 1.16 by June 2025. Despite this recovery, the quick ratio remains substantially lower than its initial value, indicating that the liquidity buffer relative to current liabilities is reduced compared to the start of the period.
In summary, the data reveals considerable stress on liquidity starting around 2020, characterized by rising current liabilities and fluctuating quick assets. The initial strong liquidity position erodes significantly through mid-2023 but shows signs of restoration in the following two years. These shifts highlight a dynamic financial environment requiring close monitoring of short-term asset management and liability obligations to maintain an adequate liquidity posture.
- Total Quick Assets
- Fluctuated over the period, peaking in mid-2021, declining dramatically by late 2023, then recovering significantly by mid-2025.
- Current Liabilities
- Displayed an upward trend overall, increasing short-term obligations substantially between 2019 and 2025.
- Quick Ratio
- Declined from a strong liquidity position near 2.7 in 2019 to near 1.0 in 2023, followed by a moderate recovery to approximately 1.16 by mid-2025.
Cash Ratio
Microsoft Corp., cash ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Cash and cash equivalents | 30,242) | 28,828) | 17,482) | 20,840) | 18,315) | 19,634) | 17,305) | 80,452) | 34,704) | 26,562) | 15,646) | 22,884) | 13,931) | 12,498) | 20,604) | 19,165) | 14,224) | 13,702) | 14,432) | 17,205) | 13,576) | 11,710) | 8,864) | 13,117) | |||||||
| Short-term investments | 64,323) | 50,790) | 54,073) | 57,588) | 57,228) | 60,387) | 63,712) | 63,499) | 76,558) | 77,865) | 83,862) | 84,378) | 90,826) | 92,195) | 104,765) | 111,450) | 116,110) | 111,705) | 117,536) | 120,772) | 122,951) | 125,916) | 125,389) | 123,519) | |||||||
| Total cash assets | 94,565) | 79,618) | 71,555) | 78,428) | 75,543) | 80,021) | 81,017) | 143,951) | 111,262) | 104,427) | 99,508) | 107,262) | 104,757) | 104,693) | 125,369) | 130,615) | 130,334) | 125,407) | 131,968) | 137,977) | 136,527) | 137,626) | 134,253) | 136,636) | |||||||
| Current liabilities | 141,218) | 114,206) | 108,882) | 115,200) | 125,286) | 118,525) | 121,016) | 124,792) | 104,149) | 85,691) | 81,718) | 87,389) | 95,082) | 77,439) | 77,510) | 80,528) | 88,657) | 72,193) | 67,486) | 70,056) | 72,310) | 58,707) | 59,640) | 58,118) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||
| Cash ratio1 | 0.67 | 0.70 | 0.66 | 0.68 | 0.60 | 0.68 | 0.67 | 1.15 | 1.07 | 1.22 | 1.22 | 1.23 | 1.10 | 1.35 | 1.62 | 1.62 | 1.47 | 1.74 | 1.96 | 1.97 | 1.89 | 2.34 | 2.25 | 2.35 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||||
| Accenture PLC | — | 0.51 | 0.50 | 0.48 | 0.26 | 0.30 | 0.32 | 0.41 | 0.50 | 0.50 | 0.38 | 0.36 | 0.45 | 0.41 | 0.35 | 0.37 | 0.52 | 0.67 | 0.65 | 0.68 | 0.67 | 0.54 | 0.49 | 0.52 | |||||||
| Adobe Inc. | — | — | 0.63 | 0.81 | 0.75 | 0.78 | 0.85 | 0.72 | 0.95 | 0.90 | 0.82 | 0.76 | 0.75 | 0.77 | 0.72 | 0.65 | 0.84 | 1.00 | 0.94 | 0.85 | 1.09 | 1.03 | 0.84 | 0.80 | |||||||
| Cadence Design Systems Inc. | — | — | 1.89 | 2.14 | 1.93 | 1.66 | 0.69 | 0.69 | 0.63 | 0.76 | 0.73 | 0.78 | 0.65 | 0.82 | 0.99 | 1.18 | 1.12 | 1.12 | 0.91 | 0.94 | 1.17 | 1.17 | 1.03 | 0.93 | |||||||
| CrowdStrike Holdings Inc. | 1.25 | 1.42 | 1.48 | 1.38 | 1.29 | 1.35 | 1.42 | 1.41 | 1.28 | 1.36 | 1.41 | 1.44 | 1.42 | 1.54 | 1.57 | 1.71 | 2.22 | 1.51 | 1.76 | 1.81 | 1.85 | 2.01 | 2.42 | 0.58 | |||||||
| Datadog Inc. | — | — | 2.89 | 2.40 | 2.25 | 1.80 | 1.65 | 2.86 | 2.58 | 2.78 | 2.87 | 2.61 | 2.48 | 2.62 | 2.72 | 2.78 | 2.94 | 3.33 | 3.70 | 4.82 | 5.09 | 5.87 | 6.07 | 3.77 | |||||||
| Fair Isaac Corp. | — | 0.25 | 0.43 | 0.56 | 0.40 | 0.46 | 0.43 | 0.37 | 0.37 | 0.41 | 0.37 | 0.39 | 0.40 | 0.40 | 0.46 | 0.50 | 0.35 | 0.44 | 0.40 | 0.37 | 0.38 | 0.27 | 0.23 | 0.25 | |||||||
| International Business Machines Corp. | — | — | 0.41 | 0.50 | 0.45 | 0.48 | 0.54 | 0.60 | 0.39 | 0.36 | 0.50 | 0.57 | 0.28 | 0.32 | 0.24 | 0.32 | 0.22 | 0.23 | 0.22 | 0.31 | 0.36 | 0.41 | 0.37 | 0.30 | |||||||
| Intuit Inc. | — | 0.64 | 0.34 | 0.39 | 0.54 | 0.76 | 0.24 | 0.45 | 0.97 | 0.97 | 0.54 | 0.82 | 0.90 | 1.09 | 0.48 | 1.52 | 1.46 | 1.52 | 1.02 | 2.69 | 2.00 | 1.46 | 1.03 | 1.28 | |||||||
| Oracle Corp. | 0.34 | 0.60 | 0.39 | 0.34 | 0.34 | 0.40 | 0.36 | 0.48 | 0.44 | 0.38 | 0.27 | 0.32 | 1.12 | 1.12 | 1.21 | 1.70 | 1.93 | 1.77 | 1.81 | 2.26 | 2.50 | 1.64 | 1.88 | 1.89 | |||||||
| Palantir Technologies Inc. | — | — | 5.51 | 5.61 | 5.25 | 4.84 | 4.96 | 5.15 | 4.93 | 4.77 | 4.53 | 4.83 | 4.48 | 3.59 | 3.69 | 3.77 | 3.83 | 3.64 | 3.43 | 3.50 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | — | 0.43 | 0.43 | 0.46 | 0.34 | 0.41 | 0.43 | 0.52 | 0.31 | 0.46 | 0.39 | 0.46 | 0.44 | 0.50 | 0.45 | 0.48 | 0.57 | 0.98 | 0.72 | 1.22 | 1.39 | 0.87 | 1.40 | 1.39 | |||||||
| Salesforce Inc. | 0.50 | 0.66 | 0.60 | 0.76 | 0.53 | 0.61 | 0.60 | 0.65 | 0.48 | 0.65 | 0.67 | 0.68 | 0.48 | 0.62 | 0.55 | 0.98 | 0.67 | 0.78 | 0.72 | 0.76 | 0.54 | 0.62 | 0.59 | 0.61 | |||||||
| ServiceNow Inc. | — | — | 0.72 | 0.80 | 0.69 | 0.78 | 0.75 | 0.73 | 0.66 | 0.73 | 0.82 | 0.85 | 0.71 | 0.89 | 0.81 | 0.83 | 0.67 | 0.80 | 0.76 | 0.94 | 0.83 | 1.04 | 0.82 | 0.68 | |||||||
| Synopsys Inc. | — | — | 5.93 | 1.62 | 1.53 | 0.79 | 0.66 | 0.48 | 0.53 | 0.67 | 0.62 | 0.48 | 0.56 | 0.60 | 0.70 | 0.51 | 0.65 | 0.66 | 0.65 | 0.47 | 0.58 | 0.51 | 0.42 | 0.34 | |||||||
| Workday Inc. | 1.45 | 1.62 | 1.63 | 1.62 | 1.55 | 1.71 | 1.59 | 1.56 | 1.32 | 1.48 | 1.30 | 1.31 | 0.72 | 0.83 | 0.77 | 0.71 | 0.83 | 0.81 | 1.08 | 0.94 | 0.65 | 0.84 | 0.56 | 0.77 | |||||||
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
1 Q4 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 94,565 ÷ 141,218 = 0.67
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in the company's liquidity and short-term financial stability over the observed periods.
- Total Cash Assets
- Total cash assets show a fluctuating trend throughout the periods. Initially, the cash assets remained relatively stable, with minor decreases and increases around the 130,000 million USD mark up to the end of 2021. However, from early 2022 onwards, the cash reserves demonstrated volatility with periods of decline and recovery. Notably, there is a significant drop observed around December 2023, where cash assets fell to approximately 81,017 million USD, followed by a gradual increase, reaching about 94,565 million USD by June 2025. Overall, despite fluctuations, total cash assets decreased when compared to the levels seen in 2019-2021.
- Current Liabilities
- Current liabilities have generally trended upward over the periods. Starting at around 58,118 million USD in September 2019, liabilities rose gradually, peaking at approximately 104,149 million USD by June 2023. After this peak, liabilities remained elevated with fluctuations around the 110,000 to 140,000 million USD range through to June 2025. The increase in current liabilities outpaces changes in cash assets, indicating a growing short-term obligation burden on the company.
- Cash Ratio
- The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, shows a pronounced declining trend over the periods. Initially, this ratio was strongly above 2.0, indicating very comfortable coverage of liabilities through liquid cash assets. However, a steady decrease is noted over time, dropping below 1.0 starting in 2023 and remaining near 0.6-0.7 towards mid-2025. This decline signals a weakening liquidity position, suggesting that the company’s liquid assets no longer cover current liabilities adequately, potentially increasing liquidity risk.
In summary, the data reveals increasing current liabilities paired with fluctuating but generally decreasing total cash assets, leading to a significant decline in the cash ratio. This implies a reduction in liquidity strength over the years, marking a shift from a strong liquidity position to more constrained short-term financial flexibility by mid-2025.