Microsoft Financials
MSFT Stock  USD 273.78 1.55 0.57% 
Microsoft  Select Account or Indicator 
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.
Microsoft Most Recent Estimates
Quarterly Earnings Growth (0.11)  EPS Estimate Next Quarter 2.32  Diluted Eps 9  EPS Estimate Current Year 9.36  EPS Estimate Next Year 10.75 
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 financial analysis of Microsoft is a critical element in measuring its lifeblood. The essential information of the daytoday 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 reinvest 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 

Evaluating Microsoft's financials involves analyzing a range of financial metrics and ratios to gain insights into the company's financial health and performance. However, considering all of Microsoft's profitability, liquidity ratios, and efficiency indicators at the same time could be an enormous task, and our Financial Distress score can provide you with a snapshot of the Microsoft's relative financial performance
Chance Of Distress
Less than 3
Microsoft has less than 3 (%) percent chance of experiencing financial distress in the next two years of operations. The calculation of odds of distress for Microsoft stock is tightly coupled with the Probability of Bankruptcy. It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity.
Please note, Microsoft's odds of distress score SHOULD NOT be confused with the real chance of Microsoft filing for bankruptcy protection for chapters 7, 11, 12, or 13. We define Financial Distress as an operational condition where an entity such as Microsoft is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from public financial statements and analysis of stock prices reacting to market conditions or economic downturns, including shortterm and longterm historical volatility. Other factors considered include Microsoft's liquidity analysis, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
More InfoThe 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 to manipulate its earnings.
Microsoft Company Summary
Microsoft competes with Arqit Quantum, Altair Engineering, Akamai Technologies, Affirm Holdings, and ACI Worldwide. 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 Associate  Canada 
Specialization  Information Technology, SoftwareInfrastructure 
Instrument  USA Stock View All 
Exchange  NASDAQ Exchange 
CIK Number  0000789019 
ISIN  US5949181045 
CUSIP  594918104 
Region  North America 
Location  Washington; U.S.A 
Business Address  One Microsoft Way, 
Sector  Software 
Industry  Information Technology 
Benchmark  NYSE Composite 
Website  www.microsoft.com 
Phone  425 882 8080 
Currency  USD  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.Return On Asset  0.15 %  
Profit Margin  0.33 %  
Operating Margin  0.41 % 
Microsoft Key Balance Sheet Accounts
2018  2019  2020  2021  2022  2023 (projected)  
Inventories  2.06 B  1.9 B  2.64 B  3.74 B  3.37 B  2.69 B  
Receivables  29.52 B  32.01 B  38.04 B  44.26 B  39.83 B  42.98 B  
Accounts Payable  9.38 B  12.53 B  15.16 B  19 B  17.1 B  18.45 B  
Total Assets  286.56 B  301.31 B  333.78 B  364.84 B  419.57 B  357.65 B  
Current Assets  175.55 B  181.91 B  184.41 B  169.68 B  195.14 B  187.29 B  
Assets Non Current  111 B  119.4 B  149.37 B  195.16 B  224.43 B  242.15 B  
Cash and Equivalents  133.82 B  136.53 B  130.33 B  104.76 B  120.47 B  126.97 B  
Total Debt  78.37 B  71 B  67.78 B  61.27 B  70.46 B  68.18 B  
Debt Current  5.52 B  3.75 B  8.07 B  2.75 B  3.16 B  4.87 B  
Debt Non Current  72.85 B  67.25 B  59.7 B  58.52 B  67.3 B  63.31 B  
Deferred Revenue  37.21 B  39.18 B  44.14 B  48.41 B  55.67 B  47.99 B  
Shareholders Equity  102.33 B  118.3 B  141.99 B  166.54 B  191.52 B  158 B  
Inventory  2.06 B  1.9 B  2.64 B  3.74 B  4.3 B  3.64 B  
Investments  2.65 B  2.96 B  5.98 B  6.89 B  6.2 B  6.48 B  
Total Liabilities  184.23 B  183.01 B  191.79 B  198.3 B  228.04 B  199.65 B  
Current Liabilities  69.42 B  72.31 B  88.66 B  95.08 B  109.34 B  92.52 B  
Tax Liabilities  35.51 B  31.77 B  29.56 B  30.37 B  34.92 B  28.51 B 
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 noncash 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.
2018  2019  2020  2021  2022  2023 (projected)  
Direct Expenses  42.91 B  46.08 B  52.23 B  62.65 B  56.38 B  60.84 B  
Consolidated Income  39.24 B  44.28 B  61.27 B  72.74 B  83.65 B  90.25 B  
Cost of Revenue  42.91 B  46.08 B  52.23 B  62.65 B  72.05 B  59.36 B  
Gross Profit  82.93 B  96.94 B  115.86 B  135.62 B  155.96 B  127.24 B  
Interest Expense  2.69 B  2.59 B  2.35 B  2.06 B  2.37 B  2.2 B  
Net Income  39.24 B  44.28 B  61.27 B  72.74 B  83.65 B  90.25 B  
Operating Expenses  39.97 B  43.98 B  45.94 B  52.24 B  60.07 B  53.94 B  
Operating Income  42.96 B  52.96 B  69.92 B  83.38 B  95.89 B  103.46 B  
Revenues  125.84 B  143.01 B  168.09 B  198.27 B  228.01 B  186.6 B  
Income Tax Expense  4.45 B  8.76 B  9.83 B  10.98 B  12.62 B  11.17 B 
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 nonbusiness activities like paying off debt or making acquisitions.
2018  2019  2020  2021  2022  2023 (projected)  
Capital Expenditure  (13.93 B)  (15.44 B)  (20.62 B)  (23.89 B)  (21.5 B)  (22.06 B)  
Depreciation Amortization and Accretion  11.68 B  12.8 B  11.69 B  14.46 B  16.63 B  13.71 B  
Net Cash Flow or Change in Cash and Cash Equivalents  (590 M)  2.22 B  648 M  (293 M)  (336.95 M)  (345.82 M)  
Net Cash Flow Business Acquisitions and Disposals  (2.39 B)  (2.52 B)  (8.91 B)  (22.04 B)  (19.83 B)  (20.36 B)  
Issuance Purchase of Equity Shares  (18.4 B)  (21.62 B)  (25.69 B)  (30.86 B)  (27.77 B)  (28.5 B)  
Issuance Repayment of Debt Securities  (4 B)  (8.94 B)  (5.5 B)  (9.02 B)  (8.12 B)  (8.33 B)  
Payment of Dividends and Other Cash Distributions  (13.81 B)  (15.14 B)  (16.52 B)  (18.14 B)  (16.32 B)  (17.61 B)  
Net Cash Flow from Financing  (36.89 B)  (46.03 B)  (48.49 B)  (58.88 B)  (52.99 B)  (54.38 B)  
Net Cash Flow from Investing  (15.77 B)  (12.22 B)  (27.58 B)  (30.31 B)  (34.86 B)  (37.61 B)  
Net Cash Flow Investment Acquisitions and Disposals  540 M  6.98 B  2.88 B  18.44 B  21.2 B  22.88 B  
Net Cash Flow from Operations  52.19 B  60.67 B  76.74 B  89.03 B  102.39 B  81.15 B  
Effect of Exchange Rate Changes on Cash  (115 M)  (201 M)  (29 M)  (141 M)  (126.9 M)  (130.24 M)  
Share Based Compensation  4.65 B  5.29 B  6.12 B  7.5 B  8.63 B  9.31 B 
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 regarded second in earnings per share category among related companies. It is regarded second in target price category among related companies fabricating about 31.86 of Target Price per Earnings Per Share. . Comparative valuation analysis is a catchall 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 pricetoearnings (P/E), pricetobook (P/B), pricetosales (P/S), pricetocash 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 welldiversified portfolio. Microsoft volatility which cannot be eliminated through diversification, requires returns over the riskfree rate. Over the long run, a welldiversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a tradeoff 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 ten with a total number of output elements of fiftyone. 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 debttoequity 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 debttoequity 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 pricetoearnings (P/E) ratio, pricetosales (P/S) ratio, and enterprise valuetoearnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if Microsoft's stock is overvalued or undervalued.
Microsoft Thematic Clasifications
Microsoft is part of several thematic ideas from Blockchain to Artificial Intelligence. If you are a themeoriented, socially responsible, and at the same time, a resultdriven 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 IdeasBlockchain  View  
Artificial Intelligence  View  
Corona Opportunity  View  
Driverless Cars  View  
Momentum  View  
Disruptive Technologies  View  
SRI Sustainable Growth  View  
Investor Favorites  View 
Microsoft March 21, 2023 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 internallydeveloped 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.
Downside Deviation  1.79  
Information Ratio  0.0835  
Maximum Drawdown  7.35  
Value At Risk  (2.66)  
Potential Upside  3.57 
Additionally, see Correlation Analysis. 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Complementary Tools for Microsoft Stock analysis
When running Microsoft 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 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 (0.11)  Dividend Share 2.6  Earnings Share 9  Revenue Per Share 27.327  Quarterly Revenue Growth 0.02 
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 Microsoft value 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.