# Microsoft Z Score

MSFT -- USA Stock

## USD 105.120.830.78%

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Please see also Microsoft Piotroski F Score and Microsoft Valuation analysis.
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## Z Score Analysis

Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in late 1960s at New York University..
Microsoft
 Z Score = Sum Of 5 Factors
=
5.4
 First Factor = 1.2 * ( Working Capital / Total Assets )
 Second Factor = 1.4 * ( Retained Earnings / Total Assets )
 Thrid Factor = 3.3 * ( EBITAD / Total Assets )
 Fouth Factor = 0.6 * ( Market Value of Equity / Total Liabilities )
 Fifth Factor = 0.99 * ( Revenue / Total Assets )

## Distress Driver Correlations

To calculate Z-Score one would need to know current working capital of the company, its total assets and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1 indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
 Compare to competition Predict Microsoft

## Income

Microsoft Income Change Over Time

#### Accumulated Other Comprehensive Income

Microsoft Corporation has Z Score of 5.4. This is 99.36% lower than that of the Technology sector, and significantly higher than that of Software Providers industry, The Z Score for all stocks is 99.24% higher than the company.

## Peer Comparison

Microsoft Z Score Comparison
 Z Score
 Microsoft Comparables
Microsoft is currently under evaluation in z score category among related companies.

## Current Microsoft financial ratios

 Return On Equity 15.41 % Return On Asset 6.90 % Profit Margin 11.57 % Operating Margin 35.34 % Current Valuation 738.88 B Shares Outstanding 7.68 B Shares Owned by Insiders 1.40 % Shares Owned by Institutions 74.56 % Number of Shares Shorted 54.94 M Price to Earning 71.08 times Price to Book 10.20 times Price to Sales 8.14 times Revenue 99.26 B Gross Profit 55.69 B EBITDA 35.08 B Net Income 11.48 B Cash and Equivalents 132.27 B Cash per Share 17.22 times Total Debt 88.62 B Debt to Equity 111.80 % Current Ratio 3.40 times Book Value Per Share 10.30 times Cash Flow from Operations 14.92 B Short Ratio 2.22 times Earnings Per Share 1.48 times Price to Earnings To Growth 2.21 times Number of Employees 124 K Beta 1.24 Market Capitalization 807.66 B Total Asset 193.47 B Retained Earnings 2.28 B Working Capital 80.3 B Current Asset 139.66 B Current Liabilities 59.36 B Z Score 5.4 Five Year Return 2.39 % Last Dividend Paid 1.68