Microsoft (Microsoft) Days Inventory

: 10.73 (As of Dec. 2023)

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Days Inventory is also known as Days Sales of Inventory (DSI). Microsoft's Average Total Inventories for the three months ended in Dec. 2023 was $2,308 Mil. Microsoft's Cost of Goods Sold for the three months ended in Dec. 2023 was $19,623 Mil. Hence, Microsoft's Days Inventory for the three months ended in Dec. 2023 was 10.73.

The historical rank and industry rank for Microsoft's Days Inventory or its related term are showing as below:

MSFT' s Days Inventory Range Over the Past 10 Years
Min: 13.75 Med: 21.58 Max: 30.99
Current: 13.75

During the past 13 years, Microsoft's highest Days Inventory was 30.99. The lowest was 13.75. And the median was 21.58.

MSFT's Days Inventory is ranked better than
56.07% of 1566 companies
in the Software industry
Industry Median: 19.53 vs MSFT: 13.75

Microsoft's Days Inventory declined from Dec. 2022 (18.91) to Dec. 2023 (10.73).

Inventory Turnover measures how fast the company turns over its inventory within a year. Microsoft's Inventory Turnover for the three months ended in Dec. 2023 was 8.50.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Microsoft's Inventory-to-Revenue for the three months ended in Dec. 2023 was 0.04.

Microsoft Days Inventory Historical Data

The historical data trend for Microsoft's Days Inventory can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Microsoft Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Days Inventory

20.10

15.68

15.83

18.58

17.30

Microsoft Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Days Inventory																18.91	16.57	14.61	15.39	10.73

Competitive Comparison

For the Software - Infrastructure subindustry, Microsoft's Days Inventory, along with its competitors' market caps and Days Inventory data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Microsoft Days Inventory Distribution

For the Software industry and Technology sector, Microsoft's Days Inventory distribution charts can be found below:

* The bar in red indicates where Microsoft's Days Inventory falls into.

Microsoft Days Inventory Calculation

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Microsoft's Days Inventory for the fiscal year that ended in Jun. 2023 is calculated as

	Days Inventory (A: Jun. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Jun. 2022 )	+	Total Inventories (A: Jun. 2023 ))	/	count )	/	Cost of Goods Sold (A: Jun. 2023 )	*	Days in Period
=	( (3742	+	2500)	/	2 )	/	65863	*	365
=	3121					/	65863	*	365
=	17.30

Microsoft's Days Inventory for the quarter that ended in Dec. 2023 is calculated as:

	Days Inventory (Q: Dec. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
=	( (3000	+	1615)	/	2 )	/	19623	*	365 / 4
=	2307.5					/	19623	*	365 / 4
=	10.73

Microsoft (NAS:MSFT) Days Inventory Explanation

Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:

1. Inventory Turnover measures how fast the company turns over its inventory within a year.

Microsoft's Inventory Turnover for the three months ended in Dec. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	19623	/	2307.5
	=	8.50

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Microsoft's Inventory to Revenue for the three months ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	2307.5	/	62020
	=	0.04

Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.

Microsoft Days Inventory Related Terms

Thank you for viewing the detailed overview of Microsoft's Days Inventory provided by GuruFocus.com. Please click on the following links to see related term pages.

Microsoft (Microsoft) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Microsoft Corp (NAS:MSFT) » Definitions » Days Inventory

Comparable Companies

Traded in Other Exchanges

MSFT:Peru MSFT:Mexico MSFT:Italy MSFd:UK 0QYP:UK MSF0:Germany MSF:Germany MSF:Germany MSF:Germany MSF:Germany MSFT:Chile MSFT:Canada MSFT34:Brazil MSFT:Austria MSFT:Argentina

Address

One Microsoft Way, Redmond, WA, USA, 98052-6399

Website

https://www.microsoft.com

Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).

Executives

Kathleen T Hogan	officer: EVP, Human Resources	C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Judson Althoff	officer: EVP, Chief Commercial Officer	MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052
Satya Nadella	director, officer: Chief Executive Officer	C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Bradford L Smith	officer: Executive Vice President	MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Teri List	director	2200 PENNSYLVANIA AVENUE, SUITE 800W, WASHINGTON DC 20037
Christopher C Capossela	officer: EVP, Chief Marketing Officer	C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Amy Hood	officer: Chief Financial Officer	C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Emma N Walmsley	director	C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Carlos A Rodriguez	director	10200 SUNSET DRIVE, MIAMI FL 33173
Christopher David Young	officer: EVP, Business Development	C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
John W Stanton	director	3650 131ST AVE SE #400, WESTERN WIRELESS CORP, BELLEVUE WA 98006
Charles W Scharf	director	C/O VISA INC., 900 METRO CENTER BLVD., FOSTER CITY CA 94404
Hugh F Johnston	director	PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Reid Hoffman	director	C/O LINKEDIN CORPORATION, 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043
Sandra E Peterson	director	100 PARSONS POND DRIVE, FRANKLIN LAKES NJ 07417