MSFTBULLISH

MSFT Current Ratio Analysis

1.23x

Higher than 26% of Technology sector peers

Updated 924h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.23x means Microsoft has $1.23 in current assets for every $1 of current liabilities, measuring its ability to cover short-term obligations.

Sector Performance

26th percentile

MSFT

1.23x

Sector Median

1.99x

Sector Avg

16.56x

Prior Period

1.28x(Jun 2026)

↓ Declining

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Deep Analysis

The current ratio of 1.23x means Microsoft has $1.23 in current assets for every $1 of current liabilities, measuring its ability to cover short-term obligations.

That is below the sector median of 1.96x, placing Microsoft at the 27th percentile among its technology peers, so its liquidity buffer is thinner than most. The trend is unavailable: the year-over-year change is N/A and the quarter-over-quarter change is N/A, with no historical values beyond the most recent 1.23x. While the level suggests a narrower safety margin than peers, the lack of trend data means there is no evidence of deterioration or improvement to weigh. This combination points to modest additional risk tied to short-term liquidity, but it does not signal a material constraint on Microsoft’s operations or growth. Overall, this metric contradicts the BULLISH verdict, as the low percentile rank and missing positive trend do not reinforce the case for upside.

Frequently Asked Questions

What does the Current Ratio tell investors about MSFT?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does MSFT's Current Ratio compare to its sector?

MSFT's Current Ratio of 1.23x compares to a Technology sector median of 1.99x, placing it in the 26th percentile.

Who are MSFT's closest peers by Current Ratio?

The closest Technology peers by Current Ratio include: APH (1.71x), CRWD (1.53x), SMAR (1.51x), ASML (1.36x), ACN (1.34x).

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Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.