Is MICROSOFT CORPORATION's free cash flow repeatable?
See how much operating cash flow came from receivables, inventory, payables and customer advances, period by period.
Where the latest operating cash flow came from
In the fiscal year ending Jun 30, 2026, operating cash flow was $182.94B against net income of $133.75B (1.37× conversion). Tagged working-capital movements contributed $1.43B.
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | |
|---|---|---|---|---|---|---|
| Net income | $61.27B | $72.74B | $72.36B | $88.14B | $101.83B | $133.75B |
| Depreciation & amortization | $9.30B | $12.60B | $11.00B | $15.20B | $22.00B | $34.30B |
| Receivables | −$6.48B | −$6.83B | −$4.09B | −$7.19B | −$10.58B | −$12.74B |
| Inventory | −$737.0M | −$1.12B | $1.24B | $1.28B | $309.0M | −$461.0M |
| Payables | $2.80B | $2.94B | −$2.72B | $3.54B | $569.0M | $5.27B |
| Customer advances | $4.63B | $5.11B | $5.54B | $5.35B | $5.44B | $9.36B |
| Other items (reconciling) | $5.96B | $3.60B | $4.25B | $12.23B | $16.59B | $13.46B |
| Operating cash flow | $76.74B | $89.03B | $87.58B | $118.55B | $136.16B | $182.94B |
| Cash conversion (OCF ÷ net income) | 1.25× | 1.22× | 1.21× | 1.35× | 1.34× | 1.37× |
Signs show the cash effect: a rise in receivables or inventory is negative; a rise in payables or customer advances is positive. "Other items" is operating cash flow minus every tagged line, so the bridge always reconciles to reported cash flow.
10-K filed 2026-07-29 · NetCashProvidedByUsedInOperatingActivities
What would cash flow look like if working-capital days stayed constant?
Revenue grew 17.8%. If receivables, inventory and payables had grown at the same rate, their combined cash effect would have been −$7.67B instead of $3.26B. Operating cash flow would have been $172.00B rather than $182.94B (−$10.93B).
| Balance | Actual cash effect | At constant days |
|---|---|---|
| Receivables | −$10.97B | −$12.44B |
| Inventory | −$459.0M | −$166.9M |
| Payables | $14.69B | $4.93B |
Uses balance-sheet balances at each fiscal year end. A positive difference means working capital released less cash than a constant-days business would have.