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

Microsoft Corp. (NASDAQ:MSFT)

Analysis of Liquidity Ratios
Quarterly Data

Beginner level

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

Liquidity Ratios (Summary)

Microsoft Corp., liquidity ratios (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
Current ratio 2.53 2.52 2.90 2.80 2.85 2.53 2.97 3.12 2.92 2.90 3.40 2.89 3.12 2.48 2.81 2.05 2.69 2.35 2.90 3.00 2.46 2.50 2.91 2.45 2.52
Quick ratio 2.30 2.33 2.73 2.65 2.68 2.35 2.80 2.93 2.72 2.74 3.24 2.77 2.96 2.37 2.67 1.94 2.52 2.22 2.66 2.75 2.24 2.30 2.65 2.24 2.28
Cash ratio 1.97 1.89 2.34 2.25 2.35 1.93 2.44 2.54 2.41 2.29 2.87 2.46 2.68 2.06 2.42 1.73 2.33 1.91 2.38 2.41 2.01 1.94 2.34 1.90 2.00

Based on: 10-Q (filing date: 2020-10-27), 10-K (filing date: 2020-07-31), 10-Q (filing date: 2020-04-29), 10-Q (filing date: 2020-01-29), 10-Q (filing date: 2019-10-23), 10-K (filing date: 2019-08-01), 10-Q (filing date: 2019-04-24), 10-Q (filing date: 2019-01-30), 10-Q (filing date: 2018-10-24), 10-K (filing date: 2018-08-03), 10-Q (filing date: 2018-04-26), 10-Q (filing date: 2018-01-31), 10-Q (filing date: 2017-10-26), 10-K (filing date: 2017-08-02), 10-Q (filing date: 2017-04-27), 10-Q (filing date: 2017-01-26), 10-Q (filing date: 2016-10-20), 10-K (filing date: 2016-07-28), 10-Q (filing date: 2016-04-21), 10-Q (filing date: 2016-01-28), 10-Q (filing date: 2015-10-22), 10-K (filing date: 2015-07-31), 10-Q (filing date: 2015-04-23), 10-Q (filing date: 2015-01-26), 10-Q (filing date: 2014-10-23).

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 Q3 2020 to Q4 2020 but then slightly improved from Q4 2020 to Q1 2021.
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 Q3 2020 to Q4 2020 and from Q4 2020 to Q1 2021.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Microsoft Corp.’s cash ratio deteriorated from Q3 2020 to Q4 2020 but then slightly improved from Q4 2020 to Q1 2021.

Current Ratio

Microsoft Corp., current ratio calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
Selected Financial Data (US$ in millions)
Current assets 177,077  181,915  170,505  167,074  165,896  175,552  159,887  156,874  164,195  169,662  156,659  167,633  161,031  159,851  146,313  144,949  157,909  139,660  128,421  127,812  121,656  124,712  118,398  116,362  112,439 
Current liabilities 70,056  72,310  58,707  59,640  58,118  69,420  53,861  50,318  56,277  58,488  46,133  58,099  51,615  64,527  52,005  70,787  58,810  59,357  44,354  42,643  49,399  49,858  40,748  47,415  44,694 
Liquidity Ratio
Current ratio1 2.53 2.52 2.90 2.80 2.85 2.53 2.97 3.12 2.92 2.90 3.40 2.89 3.12 2.48 2.81 2.05 2.69 2.35 2.90 3.00 2.46 2.50 2.91 2.45 2.52
Benchmarks
Current Ratio, Competitors2
Adobe Inc. — — 1.44 1.29 1.23 0.79 0.74 0.70 0.97 1.13 1.66 2.08 2.12 2.05 2.05 1.99 1.95 2.08 2.16 2.20 2.21 2.18 2.20 2.16 2.22
Alphabet Inc. — — 3.41 3.41 3.66 3.37 3.78 3.98 3.96 3.92 4.14 4.15 4.87 5.14 5.77 6.01 7.13 6.29 6.88 5.43 5.14 4.67 4.77 4.85 5.60
Autodesk Inc. 0.79 0.83 0.60 0.56 0.64 0.70 0.80 0.83 0.92 0.88 1.07 1.22 1.04 1.13 1.46 1.59 1.78 1.88 2.10 2.21 1.84 1.91 2.06 2.12 2.32
Facebook Inc. — — 5.51 6.02 4.60 4.40 4.66 4.47 5.38 7.19 9.00 10.67 9.91 12.92 13.37 12.31 12.61 11.97 11.69 12.22 13.16 11.25 10.68 9.01 8.59
International Business Machines Corp. — — 1.05 1.04 0.96 1.02 1.09 1.83 1.36 1.29 1.31 1.32 1.37 1.33 1.41 1.25 1.18 1.21 1.20 1.30 1.37 1.24 1.25 1.27 1.30
Intuit Inc. 3.09 2.26 1.79 1.67 1.80 1.83 1.85 1.32 1.41 1.14 1.05 0.63 0.67 0.73 0.90 0.60 0.58 0.72 0.81 0.62 0.76 1.47 1.35 1.22 1.79
Oracle Corp. 2.66 3.03 2.12 2.37 2.25 2.49 2.65 2.80 3.43 3.96 4.33 5.07 3.63 3.08 4.18 3.96 4.92 3.74 4.83 4.26 4.04 4.13 3.72 4.34 4.35
salesforce.com inc. 1.15 1.08 1.05 0.97 0.96 0.95 0.86 0.80 1.29 0.92 0.82 0.77 0.71 0.83 0.60 0.61 0.74 0.77 0.74 0.71 0.66 0.81 0.74 0.66 0.61
ServiceNow Inc. — — 1.40 1.17 1.03 1.03 1.05 1.10 1.13 1.17 1.26 1.28 1.19 1.15 1.66 1.73 1.22 1.25 1.25 1.29 1.14 1.48 1.55 1.61 1.82

Based on: 10-Q (filing date: 2020-10-27), 10-K (filing date: 2020-07-31), 10-Q (filing date: 2020-04-29), 10-Q (filing date: 2020-01-29), 10-Q (filing date: 2019-10-23), 10-K (filing date: 2019-08-01), 10-Q (filing date: 2019-04-24), 10-Q (filing date: 2019-01-30), 10-Q (filing date: 2018-10-24), 10-K (filing date: 2018-08-03), 10-Q (filing date: 2018-04-26), 10-Q (filing date: 2018-01-31), 10-Q (filing date: 2017-10-26), 10-K (filing date: 2017-08-02), 10-Q (filing date: 2017-04-27), 10-Q (filing date: 2017-01-26), 10-Q (filing date: 2016-10-20), 10-K (filing date: 2016-07-28), 10-Q (filing date: 2016-04-21), 10-Q (filing date: 2016-01-28), 10-Q (filing date: 2015-10-22), 10-K (filing date: 2015-07-31), 10-Q (filing date: 2015-04-23), 10-Q (filing date: 2015-01-26), 10-Q (filing date: 2014-10-23).

1 Q1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 177,077 ÷ 70,056 = 2.53

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 Q3 2020 to Q4 2020 but then slightly improved from Q4 2020 to Q1 2021.

Quick Ratio

Microsoft Corp., quick ratio calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
Selected Financial Data (US$ in millions)
Cash and cash equivalents 17,205  13,576  11,710  8,864  13,117  11,356  11,212  6,638  15,137  11,946  9,221  12,859  6,884  7,663  6,713  8,468  13,928  6,510  7,170  7,185  5,431  5,595  7,414  6,426  6,302 
Short-term investments 120,772  122,951  125,916  125,389  123,519  122,463  120,406  121,024  120,743  121,822  123,049  129,921  131,587  125,318  119,305  114,313  123,004  106,730  98,382  95,455  93,924  90,931  88,024  83,823  82,891 
Accounts receivable, net of allowance for doubtful accounts 22,851  32,011  22,699  23,525  19,087  29,524  19,269  19,680  17,390  26,481  17,208  18,428  14,561  19,792  12,882  14,343  11,129  18,277  12,247  14,507  11,444  17,908  12,427  16,186  12,887 
Total quick assets 160,828  168,538  160,325  157,778  155,723  163,343  150,887  147,342  153,270  160,249  149,478  161,208  153,032  152,773  138,900  137,124  148,061  131,517  117,799  117,147  110,799  114,434  107,865  106,435  102,080 
 
Current liabilities 70,056  72,310  58,707  59,640  58,118  69,420  53,861  50,318  56,277  58,488  46,133  58,099  51,615  64,527  52,005  70,787  58,810  59,357  44,354  42,643  49,399  49,858  40,748  47,415  44,694 
Liquidity Ratio
Quick ratio1 2.30 2.33 2.73 2.65 2.68 2.35 2.80 2.93 2.72 2.74 3.24 2.77 2.96 2.37 2.67 1.94 2.52 2.22 2.66 2.75 2.24 2.30 2.65 2.24 2.28
Benchmarks
Quick Ratio, Competitors2
Adobe Inc. — — 1.28 1.11 1.06 0.70 0.64 0.62 0.86 1.06 1.58 1.99 2.04 2.00 1.98 1.91 1.86 1.99 2.07 2.09 2.10 2.11 2.07 2.02 2.07
Alphabet Inc. — — 3.27 3.26 3.46 3.21 3.62 3.84 3.80 3.75 3.97 3.99 4.71 4.97 5.58 5.82 6.91 6.00 6.64 5.20 4.87 4.38 4.47 4.56 5.16
Autodesk Inc. 0.71 0.78 0.54 0.49 0.56 0.62 0.70 0.73 0.81 0.83 1.01 1.16 1.00 1.08 1.40 1.52 1.71 1.83 2.02 2.12 1.69 1.78 1.91 1.96 2.18
Facebook Inc. — — 5.33 5.81 4.48 4.28 4.50 4.32 5.22 6.94 8.65 10.26 9.65 12.64 12.92 11.87 12.20 11.63 11.26 11.80 12.70 10.91 9.96 8.47 7.97
International Business Machines Corp. — — 0.88 0.88 0.80 0.87 0.91 1.68 1.19 1.12 1.13 1.14 1.19 1.19 1.22 1.09 1.00 1.04 1.02 1.11 1.20 1.07 1.03 1.03 1.03
Intuit Inc. 2.74 2.04 1.54 1.30 1.34 1.44 1.57 0.94 0.89 0.86 0.83 0.41 0.42 0.45 0.74 0.41 0.33 0.53 0.64 0.36 0.32 1.03 1.08 0.87 1.27
Oracle Corp. 2.50 2.83 1.91 2.16 2.09 2.31 2.45 2.63 3.26 3.78 4.14 4.86 3.49 2.95 3.99 3.79 4.74 3.57 4.62 4.09 3.86 3.92 3.48 4.09 4.12
salesforce.com inc. 1.00 0.95 0.87 0.82 0.81 0.82 0.68 0.64 1.13 0.83 0.71 0.67 0.61 0.74 0.50 0.46 0.63 0.68 0.61 0.54 0.49 0.66 0.55 0.48 0.47
ServiceNow Inc. — — 1.26 1.04 0.91 0.92 0.92 0.97 0.99 1.03 1.13 1.15 1.08 1.05 1.53 1.62 1.10 1.14 1.14 1.18 1.04 1.37 1.40 1.46 1.64

Based on: 10-Q (filing date: 2020-10-27), 10-K (filing date: 2020-07-31), 10-Q (filing date: 2020-04-29), 10-Q (filing date: 2020-01-29), 10-Q (filing date: 2019-10-23), 10-K (filing date: 2019-08-01), 10-Q (filing date: 2019-04-24), 10-Q (filing date: 2019-01-30), 10-Q (filing date: 2018-10-24), 10-K (filing date: 2018-08-03), 10-Q (filing date: 2018-04-26), 10-Q (filing date: 2018-01-31), 10-Q (filing date: 2017-10-26), 10-K (filing date: 2017-08-02), 10-Q (filing date: 2017-04-27), 10-Q (filing date: 2017-01-26), 10-Q (filing date: 2016-10-20), 10-K (filing date: 2016-07-28), 10-Q (filing date: 2016-04-21), 10-Q (filing date: 2016-01-28), 10-Q (filing date: 2015-10-22), 10-K (filing date: 2015-07-31), 10-Q (filing date: 2015-04-23), 10-Q (filing date: 2015-01-26), 10-Q (filing date: 2014-10-23).

1 Q1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 160,828 ÷ 70,056 = 2.30

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 Q3 2020 to Q4 2020 and from Q4 2020 to Q1 2021.

Cash Ratio

Microsoft Corp., cash ratio calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
Selected Financial Data (US$ in millions)
Cash and cash equivalents 17,205  13,576  11,710  8,864  13,117  11,356  11,212  6,638  15,137  11,946  9,221  12,859  6,884  7,663  6,713  8,468  13,928  6,510  7,170  7,185  5,431  5,595  7,414  6,426  6,302 
Short-term investments 120,772  122,951  125,916  125,389  123,519  122,463  120,406  121,024  120,743  121,822  123,049  129,921  131,587  125,318  119,305  114,313  123,004  106,730  98,382  95,455  93,924  90,931  88,024  83,823  82,891 
Total cash assets 137,977  136,527  137,626  134,253  136,636  133,819  131,618  127,662  135,880  133,768  132,270  142,780  138,471  132,981  126,018  122,781  136,932  113,240  105,552  102,640  99,355  96,526  95,438  90,249  89,193 
 
Current liabilities 70,056  72,310  58,707  59,640  58,118  69,420  53,861  50,318  56,277  58,488  46,133  58,099  51,615  64,527  52,005  70,787  58,810  59,357  44,354  42,643  49,399  49,858  40,748  47,415  44,694 
Liquidity Ratio
Cash ratio1 1.97 1.89 2.34 2.25 2.35 1.93 2.44 2.54 2.41 2.29 2.87 2.46 2.68 2.06 2.42 1.73 2.33 1.91 2.38 2.41 2.01 1.94 2.34 1.90 2.00
Benchmarks
Cash Ratio, Competitors2
Adobe Inc. — — 1.03 0.84 0.80 0.51 0.47 0.45 0.61 0.75 1.30 1.70 1.74 1.65 1.67 1.62 1.57 1.69 1.77 1.81 1.84 1.80 1.78 1.76 1.78
Alphabet Inc. — — 2.75 2.77 2.92 2.65 3.09 3.27 3.25 3.15 3.40 3.42 4.05 4.21 4.84 5.07 6.06 5.15 5.80 4.52 4.26 3.78 3.94 4.02 4.56
Autodesk Inc. 0.57 0.57 0.36 0.37 0.44 0.41 0.54 0.61 0.70 0.62 0.83 1.00 0.88 0.87 1.23 1.32 1.54 1.41 1.74 1.82 1.44 1.45 1.59 1.65 1.89
Facebook Inc. — — 4.66 5.15 4.00 3.64 3.92 3.74 4.57 5.86 7.54 9.06 8.64 11.09 11.59 10.69 11.03 10.24 10.07 10.54 11.40 9.58 8.84 7.51 7.11
International Business Machines Corp. — — 0.41 0.37 0.30 0.24 0.31 1.10 0.47 0.32 0.40 0.34 0.37 0.34 0.36 0.34 0.29 0.24 0.29 0.32 0.43 0.24 0.28 0.25 0.25
Intuit Inc. 2.69 2.00 1.46 1.03 1.28 1.39 1.46 0.67 0.84 0.81 0.72 0.24 0.37 0.40 0.64 0.23 0.28 0.48 0.56 0.14 0.25 0.97 0.98 0.65 1.17
Oracle Corp. 2.26 2.50 1.64 1.88 1.89 2.03 2.23 2.43 3.07 3.50 3.92 4.62 3.31 2.73 3.76 3.56 4.52 3.26 4.29 3.81 3.63 3.56 3.17 3.73 3.86
salesforce.com inc. 0.76 0.54 0.62 0.59 0.61 0.39 0.43 0.40 0.91 0.45 0.50 0.47 0.42 0.30 0.24 0.22 0.40 0.24 0.34 0.28 0.26 0.23 0.31 0.24 0.26
ServiceNow Inc. — — 1.04 0.82 0.68 0.61 0.67 0.74 0.79 0.74 0.89 0.95 0.90 0.85 1.31 1.39 0.86 0.84 0.90 0.95 0.86 1.10 1.15 1.22 1.38

Based on: 10-Q (filing date: 2020-10-27), 10-K (filing date: 2020-07-31), 10-Q (filing date: 2020-04-29), 10-Q (filing date: 2020-01-29), 10-Q (filing date: 2019-10-23), 10-K (filing date: 2019-08-01), 10-Q (filing date: 2019-04-24), 10-Q (filing date: 2019-01-30), 10-Q (filing date: 2018-10-24), 10-K (filing date: 2018-08-03), 10-Q (filing date: 2018-04-26), 10-Q (filing date: 2018-01-31), 10-Q (filing date: 2017-10-26), 10-K (filing date: 2017-08-02), 10-Q (filing date: 2017-04-27), 10-Q (filing date: 2017-01-26), 10-Q (filing date: 2016-10-20), 10-K (filing date: 2016-07-28), 10-Q (filing date: 2016-04-21), 10-Q (filing date: 2016-01-28), 10-Q (filing date: 2015-10-22), 10-K (filing date: 2015-07-31), 10-Q (filing date: 2015-04-23), 10-Q (filing date: 2015-01-26), 10-Q (filing date: 2014-10-23).

1 Q1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 137,977 ÷ 70,056 = 1.97

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 Q3 2020 to Q4 2020 but then slightly improved from Q4 2020 to Q1 2021.