Microsoft Financials

MSFT Stock  USD 426.26  4.36  1.03%   
Based on the key indicators related to Microsoft's liquidity, profitability, solvency, and operating efficiency, Microsoft is doing better financially then in previous quarter. It has a moderate chance of reporting better financial numbers in May. At this time, Microsoft's Cash is comparatively stable compared to the past year. Non Current Assets Total is likely to gain to about 275 B in 2024, whereas Short Term Debt is likely to drop slightly above 3.7 B in 2024. Key indicators impacting Microsoft's financial strength include:
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.220.31
Way Down
Slightly volatile
Return On Assets0.20.1756
Fairly Up
Slightly volatile
Return On Equity0.240.32
Way Down
Slightly volatile
Debt Equity Ratio0.260.2908
Moderately Down
Pretty Stable
Operating Income106.9 B101.8 B
Sufficiently Up
Slightly volatile
Current Ratio3.322.03
Way Up
Slightly volatile
The financial analysis of Microsoft is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for Microsoft includes many different criteria found on its balance sheet. For example, investors should never minimize Microsoft's ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor Microsoft's cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in Microsoft.

Cash And Equivalents

41.91 Billion

With this module, you can analyze Microsoft financials for your investing period. You should be able to track the changes in Microsoft individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
  
Understanding current and past Microsoft Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of Microsoft's financial statements are interrelated, with each one affecting the others. For example, an increase in Microsoft's assets may result in an increase in income on the income statement.
The data published in Microsoft's official financial statements usually reflect Microsoft's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Microsoft. For example, before you start analyzing numbers published by Microsoft accountants, it's critical to develop an understanding of what Microsoft's liquidity, profitability, and earnings quality are in the context of the Software space in which it operates.
Please note, the presentation of Microsoft's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Microsoft's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Microsoft's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Microsoft. Please utilize our Beneish M Score to check the likelihood of Microsoft's management manipulating its earnings.

Microsoft Stock Summary

Microsoft competes with Cloudflare, Okta, Adobe Systems, Nutanix, and Crowdstrike Holdings. Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Microsoft Corporation was founded in 1975 and is headquartered in Redmond, Washington. Microsoft Corp operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 221000 people.
Foreign Associates
Specialization
Information Technology, Software - Infrastructure
InstrumentUSA Stock View All
ExchangeNASDAQ Exchange
ISINUS5949181045
CUSIP594918104
LocationWashington; U.S.A
Business AddressOne Microsoft Way,
SectorSoftware
IndustryInformation Technology
BenchmarkNYSE Composite
Websitewww.microsoft.com
Phone425 882 8080
CurrencyUSD - US Dollar
You should never invest in Microsoft without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of Microsoft Stock, because this is throwing your money away. Analyzing the key information contained in Microsoft's financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.

Microsoft Key Financial Ratios

Generally speaking, Microsoft's financial ratios allow both analysts and investors to convert raw data from Microsoft's financial statements into concise, actionable information that can be used to evaluate the performance of Microsoft over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that Microsoft reports annually and quarterly.

Microsoft Key Balance Sheet Accounts

201920202021202220232024 (projected)
Total Assets301.3B333.8B364.8B412.0B473.8B497.5B
Other Current Liab20.0B23.9B27.8B29.9B34.4B36.1B
Net Debt57.4B53.6B47.3B25.3B29.1B30.5B
Retained Earnings34.6B57.1B84.3B118.8B136.7B143.5B
Cash13.6B14.2B13.9B34.7B39.9B41.9B
Net Receivables32.0B38.0B44.3B48.7B56.0B58.8B
Inventory1.9B2.6B3.7B2.5B2.9B3.0B
Other Current Assets11.5B13.4B16.9B21.8B25.1B26.3B
Total Liab183.0B191.8B198.3B205.8B236.6B248.4B
Total Current Assets181.9B184.4B169.7B184.3B211.9B222.5B
Cash And Equivalents13.6B14.2B13.9B34.7B39.9B41.9B
Short Term Debt3.7B8.1B2.7B5.2B6.0B3.7B
Intangible Assets7.0B7.8B11.3B9.4B10.8B11.3B
Accounts Payable12.5B15.2B19B18.1B20.8B21.8B
Common Stock80.6B83.1B86.9B93.7B107.8B61.9B
Other Assets13.1B15.1B21.9B30.6B35.2B37.0B
Other Liab35.7B34.5B30.0B44.7B51.4B54.0B
Good Will43.4B49.7B67.5B67.9B78.1B82.0B
Long Term Debt59.6B50.1B47.0B42.0B48.3B37.6B
Long Term Debt Total67.2B59.7B58.5B54.7B62.9B44.0B
Net Tangible Assets67.9B84.5B87.7B129.0B148.3B155.7B

Microsoft Key Income Statement Accounts

An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket. The other reason investors look at the income statement is to determine what Microsoft's earnings per share (EPS) will be in order to see if they want to buy more shares or not. For example, if a company earned $20 million in the last quarter and has 100,000 shares outstanding, its EPS is 20 cents. If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed.
201920202021202220232024 (projected)
Interest Expense2.6B2.3B2.1B2.0B2.3B2.4B
Total Revenue143.0B168.1B198.3B211.9B243.7B255.9B
Gross Profit96.9B115.9B135.6B146.1B168.0B176.4B
Operating Income53.0B69.9B83.4B88.5B101.8B106.9B
Ebit55.6B72.1B85.4B91.3B105.0B110.2B
Ebitda68.4B83.8B99.9B105.2B120.9B127.0B
Cost Of Revenue46.1B52.2B62.7B65.9B75.7B79.5B
Income Before Tax53.0B71.1B83.7B89.3B102.7B107.8B
Net Income44.3B61.3B72.7B72.4B83.2B87.4B
Income Tax Expense8.8B9.8B11.0B17.0B19.5B20.5B
Research Development19.3B20.7B24.5B27.2B31.3B32.8B
Tax Provision8.8B9.8B11.0B17.0B19.5B10.3B
Net Interest Income(2.6B)(215M)31M1.0B1.2B1.2B
Interest Income2.7B2.1B2.1B1.0B1.2B1.6B

Microsoft Key Cash Accounts

Cash flow analysis captures how much money flows into and out of Microsoft. It measures of how well Microsoft is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money Microsoft brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money Microsoft had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what Microsoft has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
201920202021202220232024 (projected)
Change To Inventory168M(737M)(1.1B)1.2B1.4B1.5B
Change In Cash2.2B648M(293M)20.8B23.9B25.1B
Free Cash Flow45.2B56.1B65.1B59.5B68.4B71.8B
Depreciation12.8B11.7B14.5B13.9B15.9B16.7B
Capital Expenditures15.4B20.6B23.9B28.1B32.3B33.9B
Net Income44.3B61.3B72.7B72.4B83.2B87.4B
End Period Cash Flow13.6B14.2B13.9B34.7B39.9B41.9B
Other Non Cash Items(219M)(1.2B)(409M)196M176.4M185.2M
Dividends Paid15.1B16.5B18.1B19.8B22.8B23.9B
Investments(10.7B)2.9B18.4B(22.7B)(26.1B)(24.8B)
Change Receivables(2.8B)(2.6B)(6.5B)(6.8B)(6.2B)(5.8B)
Net Borrowings(4B)(8.9B)(3.8B)(9.0B)(8.1B)(7.7B)
Change To Netincome(2.6B)5.1B4.7B1.4B1.3B2.0B

Microsoft Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Microsoft's current stock value. Our valuation model uses many indicators to compare Microsoft value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Microsoft competition to find correlations between indicators driving Microsoft's intrinsic value. More Info.
Microsoft is considered to be number one stock in return on equity category among related companies. It is regarded second in return on asset category among related companies reporting about  0.39  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Microsoft is roughly  2.58 . At this time, Microsoft's Return On Equity is comparatively stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Microsoft by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Microsoft's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Microsoft's earnings, one of the primary drivers of an investment's value.

Microsoft Systematic Risk

Microsoft's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Microsoft volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was twenty with a total number of output elements of fourty-one. The Beta measures systematic risk based on how returns on Microsoft correlated with the market. If Beta is less than 0 Microsoft generally moves in the opposite direction as compared to the market. If Microsoft Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Microsoft is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Microsoft is generally in the same direction as the market. If Beta > 1 Microsoft moves generally in the same direction as, but more than the movement of the benchmark.

About Microsoft Financials

What exactly are Microsoft Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include Microsoft's income statement, its balance sheet, and the statement of cash flows. Potential Microsoft investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Microsoft investors may use each financial statement separately, they are all related. The changes in Microsoft's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Microsoft's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

Steps to analyze Microsoft Financials for Investing

There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as Microsoft is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of Microsoft has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it.
In summary, you can determine if Microsoft's financials are consistent with your investment objective using the following steps:
  • Review Microsoft's balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
  • Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
  • Study the cash flow inflows and outflows to understand Microsoft's liquidity and solvency.
  • Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
  • Compare Microsoft's financials to those of its peers to see how it stacks up and identify any potential red flags.
  • Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if Microsoft's stock is overvalued or undervalued.
Remember, these are just guidelines and should not be the only basis for investment decisions. It is always important to analyze the leading stock market indicators., conduct additional research and seek professional advice if needed.

Microsoft Thematic Clasifications

Microsoft is part of several thematic ideas from Adviser Favorites to Driverless Cars. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. Get More Thematic Ideas
Today, most investors in Microsoft Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Microsoft's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Microsoft growth as a starting point in their analysis.

Price Earnings To Growth Ratio

160.61

At this time, Microsoft's Price Earnings To Growth Ratio is comparatively stable compared to the past year.

Microsoft April 15, 2024 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of Microsoft help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Microsoft. We use our internally-developed statistical techniques to arrive at the intrinsic value of Microsoft based on widely used predictive technical indicators. In general, we focus on analyzing Microsoft Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Microsoft's daily price indicators and compare them against related drivers.
When determining whether Microsoft is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Microsoft Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Microsoft Stock. Highlighted below are key reports to facilitate an investment decision about Microsoft Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Microsoft. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census.
For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.
Note that the Microsoft information on this page should be used as a complementary analysis to other Microsoft's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Complementary Tools for Microsoft Stock analysis

When running Microsoft's price analysis, check to measure Microsoft's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Microsoft is operating at the current time. Most of Microsoft's value examination focuses on studying past and present price action to predict the probability of Microsoft's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Microsoft's price. Additionally, you may evaluate how the addition of Microsoft to your portfolios can decrease your overall portfolio volatility.
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Is Microsoft's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Microsoft. If investors know Microsoft will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Microsoft listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.332
Dividend Share
2.86
Earnings Share
11.06
Revenue Per Share
30.612
Quarterly Revenue Growth
0.176
The market value of Microsoft is measured differently than its book value, which is the value of Microsoft that is recorded on the company's balance sheet. Investors also form their own opinion of Microsoft's value that differs from its market value or its book value, called intrinsic value, which is Microsoft's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Microsoft's market value can be influenced by many factors that don't directly affect Microsoft's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Microsoft's value and its price as these two are different measures arrived at by different means. Investors typically determine if Microsoft is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Microsoft's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.