Microsoft (XSWX:MSFT) Receivables Turnover: 1.41 (As of Mar. 2026)


XSWX:MSFT Microsoft Corp XSWX:MSFT
95 GF Score
Price CHF300.00
GF Value CHF437.44
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Microsoft Receivables Turnover?

Microsoft XSWX:MSFT 95 Receivables Turnover is 1.41 as of Mar. 2026. GuruFocus rates XSWX:MSFT with a GF Score™ of 95/100 and a GF Value™ of CHF437.44 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,770 Software companies, Microsoft ranks worse than 52.64% on this metric.

The Receivables Turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by average Accounts Receivable. An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. Microsoft's Revenue for the three months ended in Mar. 2026 was CHF65,256 Mil. Microsoft's average Accounts Receivable for the three months ended in Mar. 2026 was CHF46,162 Mil. Hence, Microsoft's Receivables Turnover for the three months ended in Mar. 2026 was 1.41.


Microsoft  (XSWX:MSFT) Receivables Turnover Explanation

An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. This metric is commonly used to compare companies within the same industry to check whether they are on par with their competitors.


Microsoft Receivables Turnover Related Terms


Microsoft Receivables Turnover Historical Data

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The historical data trend for Microsoft's Receivables Turnover 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.

Microsoft Receivables Turnover Chart

Microsoft Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Receivables Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.70 4.97 4.40 4.63 4.25

Microsoft Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Receivables Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.40 1.21 1.25 1.49 1.41

XSWX:MSFT vs ORCL, PLTR, PANW: Receivables Turnover Comparison

For the Software - Infrastructure subindustry, Microsoft's Receivables Turnover, along with its competitors' market caps and Receivables Turnover 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 Receivables Turnover vs Software Industry

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

* The bar in red indicates where Microsoft's Receivables Turnover falls into.


XSWX:MSFT
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Microsoft Receivables Turnover Calculation

Receivables Turnover measures the number of times a company collects its average accounts receivable balance.

Microsoft's Receivables Turnover for the fiscal year that ended in Jun. 2025 is calculated as

Receivables Turnover (A: Jun. 2025 )
=Revenue / Average Accounts Receivable
=Revenue (A: Jun. 2025 ) / ((Accounts Receivable (A: Jun. 2024 ) + Accounts Receivable (A: Jun. 2025 )) / count )
=229097.957 / ((50878.671 + 56846.746) / 2 )
=229097.957 / 53862.7085
=4.25

Microsoft's Receivables Turnover for the quarter that ended in Mar. 2026 is calculated as

Receivables Turnover (Q: Mar. 2026 )
=Revenue / Average Accounts Receivable
=Revenue (Q: Mar. 2026 ) / ((Accounts Receivable (Q: Dec. 2025 ) + Accounts Receivable (Q: Mar. 2026 )) / count )
=65256.148 / ((45052.742 + 47270.279) / 2 )
=65256.148 / 46161.5105
=1.41

* 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.

Frequently Asked Questions Learn more about Receivables Turnover →
What does a Receivables Turnover of 1.41 mean?
Microsoft (XSWX:MSFT) has a Receivables Turnover of 1.41 as of Mar. 2026. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on Microsoft and its competitors. According to the industry distribution chart, Microsoft ranks #1458 out of 2770 companies in the Software industry, placing it in the top 52.6%.
Is Microsoft's Receivables Turnover too high?
Microsoft's current Receivables Turnover is 1.41. The Software industry median Receivables Turnover is 5.67. Microsoft's value of 1.41 is 75.1% below this industry median. Based on the distribution chart, Microsoft ranks #1458 out of 2770 companies in the Software industry, which is below the industry midpoint. Overall, Microsoft has a GF Score™ of 95/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Microsoft's Receivables Turnover compare to ORCL and PLTR?
According to the Software industry distribution chart, Microsoft ranks #1458 out of 2770 companies for Receivables Turnover. This places Microsoft in the lower half of its industry. The industry median Receivables Turnover is 5.67. Microsoft's value of 1.41 is 75.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Receivables Turnover for a Software company?
The median Receivables Turnover among Software companies is 5.67, based on 2,770 companies in the industry. Companies in the top quartile (top 25%) have a Receivables Turnover significantly above this median, while those in the bottom quartile fall well below. However, Receivables Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microsoft's current Receivables Turnover of 1.41 is 75.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Receivables Turnover mean?
A high Receivables Turnover can signal that a stock is expensive relative to its fundamentals. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on Microsoft and its competitors. For the Software industry, the median Receivables Turnover is 5.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microsoft's current Receivables Turnover is 1.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Microsoft stock overvalued right now?
Based on GuruFocus' analysis, Microsoft (XSWX:MSFT) is currently considered Significantly Undervalued. The stock's GF Value™ is CHF437.44, compared to a current price of CHF300.00 — trading 31.4% below its estimated fair value. The current Receivables Turnover is 1.41 and 75.1% below the Software industry median of 5.67. Microsoft's overall GF Score™ is 95/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Receivables Turnover calculated?
Receivables Turnover is calculated from a company's financial statements. For Microsoft (XSWX:MSFT), the current Receivables Turnover is 1.41 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Microsoft (XSWX:MSFT) Overvalued in 2026?

Based on GuruFocus' analysis, Microsoft stock appears to be undervalued. The current stock price of CHF300.00 is trading 31.4% below its estimated GF Value™ of CHF437.44. GuruFocus considers Microsoft to be Significantly Undervalued.

Key valuation signals for XSWX:MSFT:

  • Receivables Turnover: 1.41
  • GF Value™: CHF437.44 vs. price of CHF300.00 (31.4% below fair value)
  • GF Score™: 95/100 with 2 warning signs
  • Industry Position: 75.1% below the Software median (#1458 of 2770)

No single metric tells the full story. See the XSWX:MSFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Microsoft Business Description

Address One Microsoft Way, Redmond, WA, USA, 98052-6399
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).
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Receivables Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF300.00
Price
CHF437.44
GF Value