Microsoft Z Score

MSFT -- USA Stock  

USD 105.12  0.83  0.78%

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

About Z Score

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

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 Equity15.41 %
Return On Asset6.90 %
Profit Margin11.57 %
Operating Margin35.34 %
Current Valuation738.88 B
Shares Outstanding7.68 B
Shares Owned by Insiders1.40 %
Shares Owned by Institutions74.56 %
Number of Shares Shorted54.94 M
Price to Earning71.08 times
Price to Book10.20 times
Price to Sales8.14 times
Revenue99.26 B
Gross Profit55.69 B
EBITDA35.08 B
Net Income11.48 B
Cash and Equivalents132.27 B
Cash per Share17.22 times
Total Debt88.62 B
Debt to Equity111.80 %
Current Ratio3.40 times
Book Value Per Share10.30 times
Cash Flow from Operations14.92 B
Short Ratio2.22 times
Earnings Per Share1.48 times
Price to Earnings To Growth2.21 times
Number of Employees124 K
Beta1.24
Market Capitalization807.66 B
Total Asset193.47 B
Retained Earnings2.28 B
Working Capital80.3 B
Current Asset139.66 B
Current Liabilities59.36 B
Z Score5.4
Five Year Return2.39 %
Last Dividend Paid1.68