Quick Ratio

Microsoft’s current Quick Ratio of 1.01x means the company has $1.01 of highly liquid assets—cash, marketable securities, and receivables—for every $1.00 of current liabilities due within a year, indicating it can just cover its short-term obligations without relying on inventory sales.

Compared to sector peers, this ratio sits well below the technology median of 1.59x, placing Microsoft in the 27th percentile—meaning 73% of peers hold a stronger liquidity buffer. The eight-quarter trend is not available, but the quarter-over-quarter change shows a 9.8% decline from 1.12x to 1.01x, while the year-over-year change is also N/A due to lack of prior data. A ratio barely above 1.0 paired with a recent drop suggests liquidity is adequate but thinning, leaving less margin for unexpected cash needs versus the broader sector. This metric contradicts the overall BULLISH verdict because the low relative level and downward movement point to tighter short-term financial flexibility, which counters the positive investment thesis.

Frequently Asked Questions

Closest Sector Peers