Microsoft Stock Return On Equity

MSFT Stock

USD 400.96 1.84 0.46%

Microsoft fundamentals help investors to digest information that contributes to Microsoft's financial success or failures. It also enables traders to predict the movement of Microsoft Stock. The fundamental analysis module provides a way to measure Microsoft's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Microsoft stock.

		Last Reported	Projected for Next Year
	Return On Equity	0.32	0.24

Return On Equity is likely to drop to 0.24 in 2024.

This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.

Microsoft Company Return On Equity Analysis

Microsoft's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Return On Equity

Net Income

Total Equity

More About Return On Equity | All Equity Analysis

Current Microsoft Return On Equity

0.39

Most of Microsoft's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Microsoft is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Microsoft Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for Microsoft is extremely important. It helps to project a fair market value of Microsoft Stock properly, considering its historical fundamentals such as Return On Equity. Since Microsoft's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Microsoft's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Microsoft's interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Retained Earnings	Net Receivables	Total Liab	Total Current Assets	Cash And Equivalents	Property Plant Equipment	Short Term Debt	Intangible Assets	Accounts Payable	Common Stock	Short Term Investments	Current Deferred Revenue	Good Will	Long Term Debt	Long Term Debt Total	Net Tangible Assets	Deferred Long Term Liab	Long Term Investments	Short Long Term Debt	Capital Surpluse	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		0.96	0.36	0.9	0.99	0.96	0.93	0.9	0.94	0.21	0.89	0.97	0.73	0.38	0.99	0.98	0.55	0.65	0.84	-0.44	-0.29	-0.72	0.85	0.81	-0.55	0.79
Total Stockholder Equity	0.96		0.08	0.97	0.99	0.85	0.82	0.95	0.97	0.07	0.8	0.97	0.67	0.14	0.97	0.95	0.29	0.42	0.96	-0.49	-0.08	-0.57	0.85	0.87	-0.7	0.87
Net Debt	0.36	0.08		-0.05	0.22	0.6	0.6	0.01	0.1	0.57	0.53	0.23	0.4	0.91	0.31	0.3	0.96	0.9	-0.18	0.13	-0.71	-0.67	0.15	-0.04	0.35	-0.12
Retained Earnings	0.9	0.97	-0.05		0.94	0.76	0.69	0.96	0.99	-0.05	0.72	0.94	0.5	-0.06	0.92	0.93	0.17	0.32	0.97	-0.56	-0.06	-0.5	0.87	0.91	-0.78	0.92
Net Receivables	0.99	0.99	0.22	0.94		0.91	0.88	0.92	0.97	0.09	0.85	0.99	0.7	0.25	0.98	0.98	0.41	0.54	0.9	-0.53	-0.22	-0.65	0.87	0.85	-0.63	0.83
Total Liab	0.96	0.85	0.6	0.76	0.91		0.97	0.78	0.84	0.33	0.92	0.9	0.72	0.58	0.94	0.93	0.75	0.83	0.67	-0.36	-0.48	-0.82	0.78	0.69	-0.37	0.65
Total Current Assets	0.93	0.82	0.6	0.69	0.88	0.97		0.74	0.77	0.4	0.88	0.85	0.81	0.67	0.91	0.86	0.74	0.79	0.64	-0.28	-0.38	-0.78	0.69	0.6	-0.28	0.57
Cash And Equivalents	0.9	0.95	0.01	0.96	0.92	0.78	0.74		0.95	0.03	0.72	0.88	0.53	0.02	0.91	0.9	0.25	0.37	0.94	-0.47	-0.1	-0.5	0.81	0.86	-0.66	0.9
Property Plant Equipment	0.94	0.97	0.1	0.99	0.97	0.84	0.77	0.95		0.05	0.78	0.97	0.56	0.08	0.96	0.97	0.3	0.44	0.94	-0.53	-0.17	-0.59	0.89	0.9	-0.73	0.89
Short Term Debt	0.21	0.07	0.57	-0.05	0.09	0.33	0.4	0.03	0.05		0.2	0.11	0.36	0.63	0.23	0.09	0.51	0.45	-0.05	0.54	-0.01	-0.39	0.05	0.02	0.03	0.01
Intangible Assets	0.89	0.8	0.53	0.72	0.85	0.92	0.88	0.72	0.78	0.2		0.86	0.7	0.5	0.88	0.89	0.69	0.75	0.61	-0.22	-0.32	-0.7	0.7	0.63	-0.46	0.6
Accounts Payable	0.97	0.97	0.23	0.94	0.99	0.9	0.85	0.88	0.97	0.11	0.86		0.68	0.25	0.98	0.98	0.41	0.54	0.89	-0.51	-0.2	-0.67	0.88	0.85	-0.66	0.82
Common Stock	0.73	0.67	0.4	0.5	0.7	0.72	0.81	0.53	0.56	0.36	0.7	0.68		0.63	0.7	0.65	0.55	0.61	0.51	-0.17	-0.06	-0.58	0.67	0.61	-0.28	0.52
Short Term Investments	0.38	0.14	0.91	-0.06	0.25	0.58	0.67	0.02	0.08	0.63	0.5	0.25	0.63		0.32	0.27	0.89	0.83	-0.12	0.15	-0.49	-0.62	0.16	-0.01	0.37	-0.1
Current Deferred Revenue	0.99	0.97	0.31	0.92	0.98	0.94	0.91	0.91	0.96	0.23	0.88	0.98	0.7	0.32		0.98	0.49	0.6	0.87	-0.38	-0.23	-0.68	0.84	0.83	-0.63	0.82
Good Will	0.98	0.95	0.3	0.93	0.98	0.93	0.86	0.9	0.97	0.09	0.89	0.98	0.65	0.27	0.98		0.49	0.62	0.85	-0.51	-0.32	-0.69	0.88	0.85	-0.62	0.82
Long Term Debt	0.55	0.29	0.96	0.17	0.41	0.75	0.74	0.25	0.3	0.51	0.69	0.41	0.55	0.89	0.49	0.49		0.98	0.03	0.0	-0.7	-0.74	0.36	0.19	0.2	0.12
Long Term Debt Total	0.65	0.42	0.9	0.32	0.54	0.83	0.79	0.37	0.44	0.45	0.75	0.54	0.61	0.83	0.6	0.62	0.98		0.17	-0.15	-0.71	-0.8	0.53	0.36	0.08	0.27
Net Tangible Assets	0.84	0.96	-0.18	0.97	0.9	0.67	0.64	0.94	0.94	-0.05	0.61	0.89	0.51	-0.12	0.87	0.85	0.03	0.17		-0.52	0.09	-0.4	0.8	0.87	-0.77	0.9
Deferred Long Term Liab	-0.44	-0.49	0.13	-0.56	-0.53	-0.36	-0.28	-0.47	-0.53	0.54	-0.22	-0.51	-0.17	0.15	-0.38	-0.51	0.0	-0.15	-0.52		0.39	0.32	-0.59	-0.52	0.16	-0.44
Long Term Investments	-0.29	-0.08	-0.71	-0.06	-0.22	-0.48	-0.38	-0.1	-0.17	-0.01	-0.32	-0.2	-0.06	-0.49	-0.23	-0.32	-0.7	-0.71	0.09	0.39		0.52	-0.22	-0.03	-0.38	0.04
Short Long Term Debt	-0.72	-0.57	-0.67	-0.5	-0.65	-0.82	-0.78	-0.5	-0.59	-0.39	-0.7	-0.67	-0.58	-0.62	-0.68	-0.69	-0.74	-0.8	-0.4	0.32	0.52		-0.6	-0.48	0.14	-0.41
Capital Surpluse	0.85	0.85	0.15	0.87	0.87	0.78	0.69	0.81	0.89	0.05	0.7	0.88	0.67	0.16	0.84	0.88	0.36	0.53	0.8	-0.59	-0.22	-0.6		0.97	-0.61	0.88
Net Invested Capital	0.81	0.87	-0.04	0.91	0.85	0.69	0.6	0.86	0.9	0.02	0.63	0.85	0.61	-0.01	0.83	0.85	0.19	0.36	0.87	-0.52	-0.03	-0.48	0.97		-0.75	0.96
Net Working Capital	-0.55	-0.7	0.35	-0.78	-0.63	-0.37	-0.28	-0.66	-0.73	0.03	-0.46	-0.66	-0.28	0.37	-0.63	-0.62	0.2	0.08	-0.77	0.16	-0.38	0.14	-0.61	-0.75		-0.79
Capital Stock	0.79	0.87	-0.12	0.92	0.83	0.65	0.57	0.9	0.89	0.01	0.6	0.82	0.52	-0.1	0.82	0.82	0.12	0.27	0.9	-0.44	0.04	-0.41	0.88	0.96	-0.79

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Microsoft Return On Equity Historical Pattern

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 drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Microsoft return on equity as a starting point in their analysis.

Microsoft Return On Equity

Timeline

For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Competition

Predict Microsoft

Return On Equity Over Time

Microsoft Total Stockholder Equity

Total Stockholder Equity

249.01 Billion

At this time, Microsoft's Total Stockholder Equity is comparatively stable compared to the past year.

Based on the latest financial disclosure, Microsoft has a Return On Equity of 0.3917. This is 103.26% lower than that of the Software sector and significantly higher than that of the Information Technology industry. The return on equity for all United States stocks is notably lower than that of the firm.

Microsoft Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Microsoft's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Microsoft could also be used in its relative valuation, which is a method of valuing Microsoft by comparing valuation metrics of similar companies.

Microsoft is currently under evaluation in return on equity category among related companies.

Microsoft ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Microsoft's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Microsoft's managers, analysts, and investors.

Environment Score

Governance Score

Social Score

Microsoft Fundamentals

	Return On Equity	0.39
	Return On Asset	0.15
	Profit Margin	0.36 %
	Operating Margin	0.44 %
	Current Valuation	2.97 T
	Shares Outstanding	7.43 B
	Shares Owned By Insiders	0.05 %
	Shares Owned By Institutions	73.79 %
	Number Of Shares Shorted	55.77 M
	Price To Earning	26.64 X
	Price To Book	12.45 X
	Price To Sales	13.03 X
	Revenue	211.91 B
	Gross Profit	135.62 B
	EBITDA	105.16 B
	Net Income	72.36 B
	Cash And Equivalents	34.7 B
	Cash Per Share	14.39 X
	Total Debt	59.97 B
	Debt To Equity	0.44 %
	Current Ratio	1.84 X
	Book Value Per Share	32.06 X
	Cash Flow From Operations	87.58 B
	Short Ratio	2.60 X
	Earnings Per Share	11.06 X
	Price To Earnings To Growth	2.02 X
	Target Price	462.44
	Number Of Employees	221 K
	Beta	0.88
	Market Capitalization	2.97 T
	Total Asset	411.98 B
	Retained Earnings	118.85 B
	Working Capital	80.11 B
	Current Asset	139.66 B
	Current Liabilities	59.36 B
	Annual Yield	0.01 %
	Five Year Return	1.18 %
	Net Asset	411.98 B
	Last Dividend Paid	2.86

About Microsoft Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Microsoft's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Microsoft using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Microsoft based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

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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:

How To Invest In Microsoft

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Is Microsoft Stock a good investment?

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What is Microsoft's Net Worth?

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Largest Systems Software Companies

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Largest Software - Infrastructure Companies

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Check out Microsoft Piotroski F Score and Microsoft Altman Z Score analysis.

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 Stocks Directory module to find actively traded stocks across global markets.

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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.

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

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Microsoft Stock Return On Equity

Microsoft Company Return On Equity Analysis

Return On Equity

Net Income

Total Equity

Current Microsoft Return On Equity

Microsoft Return On Equity Driver Correlations

Microsoft Return On Equity Historical Pattern

Microsoft Total Stockholder Equity

Total Stockholder Equity

249.01 Billion

Microsoft Return On Equity Peer Comparison

Microsoft ESG Sustainability

Microsoft Fundamentals

About Microsoft Fundamental Analysis

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

Complementary Tools for Microsoft Stock analysis

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