Microsoft (Microsoft) Inventory-to-Revenue

: 0.04 (As of Dec. 2023)

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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 Average Total Inventories for the quarter that ended in Dec. 2023 was $2,308 Mil. Microsoft's Revenue for the three months ended in Dec. 2023 was $62,020 Mil. Microsoft's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.04.

Microsoft's Inventory-to-Revenue for the quarter that ended in Dec. 2023 declined from Sep. 2023 (0.05) to Sep. 2023 (0.04)

A decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Microsoft's Days Inventory for the three months ended in Dec. 2023 was 10.73.

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

Microsoft Inventory-to-Revenue Historical Data

The historical data trend for Microsoft's Inventory-to-Revenue 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

Inventory-to-Revenue

0.02

0.01

0.02

Microsoft Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory-to-Revenue																0.07	0.06	0.05	0.05	0.04

Competitive Comparison

For the Software - Infrastructure subindustry, Microsoft's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue 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 Inventory-to-Revenue Distribution

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

* The bar in red indicates where Microsoft's Inventory-to-Revenue falls into.

Microsoft Inventory-to-Revenue Calculation

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

	Inventory-to-Revenue (A: Jun. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Jun. 2022 )	+	Total Inventories (A: Jun. 2023 ))	/	count )	/	Revenue (A: Jun. 2023 )
=	( (3742	+	2500)	/	2 )	/	211915
=	3121					/	211915
=	0.01

Microsoft's Inventory-to-Revenue for the quarter that ended in Dec. 2023 is calculated as

	Inventory-to-Revenue (Q: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Revenue (Q: Dec. 2023 )
=	( (3000	+	1615)	/	2 )	/	62020
=	2307.5					/	62020
=	0.04

Microsoft (NAS:MSFT) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

More Related Terms:

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

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

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

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

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

Inventory Turnover	=	Cost of Goods Sold (Q: Dec. 2023 )	/	Average Total Inventories (Q: Dec. 2023 )
	=	19623	/	2307.5
	=	8.50

Microsoft Inventory-to-Revenue Related Terms

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Microsoft (Microsoft) Business Description

Industry

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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