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

Liquidity Ratios (Summary)
Current Ratio
Quick Ratio
Cash Ratio

Microsoft Corp., liquidity ratios (quarterly data)

	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	2.52	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	2.33	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	1.89	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

Liquidity ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Microsoft Corp.’s current ratio improved from Q2 2020 to Q3 2020 but then deteriorated significantly from Q3 2020 to Q4 2020.
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 Q2 2020 to Q3 2020 but then deteriorated significantly from Q3 2020 to Q4 2020.
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Microsoft Corp.’s cash ratio improved from Q2 2020 to Q3 2020 but then deteriorated significantly from Q3 2020 to Q4 2020.

Microsoft Corp., current ratio calculation (quarterly data)

	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	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	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	2.52	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	3.66	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.	0.83	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.	—	—	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.	—	—	1.04	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.	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.	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.	1.08	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.	—	—	1.17	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

¹ Q4 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 181,915 ÷ 72,310 = 2.52

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 improved from Q2 2020 to Q3 2020 but then deteriorated significantly from Q3 2020 to Q4 2020.

Microsoft Corp., quick ratio calculation (quarterly data)

	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	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	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	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	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	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	2.33	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.	—	—	3.26	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.	0.78	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.	—	—	5.81	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	0.80	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.	2.04	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.	2.83	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.	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.	—	—	1.04	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

¹ Q4 2020 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 168,538 ÷ 72,310 = 2.33

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 improved from Q2 2020 to Q3 2020 but then deteriorated significantly from Q3 2020 to Q4 2020.

Microsoft Corp., cash ratio calculation (quarterly data)

	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	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	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	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	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	1.89	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.	—	—	2.77	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	0.36	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.	—	—	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.	—	—	0.37	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.	2.00	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.	2.50	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.	0.54	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.	—	—	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

¹ Q4 2020 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 136,527 ÷ 72,310 = 1.89

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 improved from Q2 2020 to Q3 2020 but then deteriorated significantly from Q3 2020 to Q4 2020.

Microsoft Corp. (NASDAQ:MSFT)

Analysis of Liquidity Ratios
Quarterly Data

Liquidity Ratios (Summary)

Current Ratio

Quick Ratio

Cash Ratio

Microsoft Corp. (NASDAQ:MSFT)

Analysis of Liquidity RatiosQuarterly Data

Liquidity Ratios (Summary)

Current Ratio

Quick Ratio

Cash Ratio

Analysis of Liquidity Ratios
Quarterly Data