Microsoft Piotroski F Score
| MSFT Stock | USD 317.01 2.52 0.79% |
Microsoft | Piotroski F Score |
At this time, it appears that Microsoft's Piotroski F Score is Healthy. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
5.0
Piotroski F Score - Healthy
1 | Current Return On Assets | Positive | Focus |
2 | Change in Return on Assets | Decreased | Focus |
3 | Cash Flow Return on Assets | Positive | Focus |
4 | Current Quality of Earnings (accrual) | Improving | Focus |
5 | Asset Turnover Growth | Decrease | Focus |
6 | Current Ratio Change | Increase | Focus |
7 | Long Term Debt Over Assets Change | Higher Leverage | Focus |
8 | Change In Outstending Shares | Decrease | Focus |
9 | Change in Gross Margin | No Change | Focus |
Microsoft Piotroski F Score Drivers
The critical factor to consider when applying the Piotroski F Score to Microsoft is to make sure Microsoft is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Microsoft's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Microsoft's financial numbers are properly reported.
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Weighted Average Shares Diluted | 7.3 B | 7.5 B |
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| Weighted Average Shares | 7.2 B | 7.4 B |
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| Return on Average Assets | 0.18 | 0.191 |
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| Net Cash Flow from Operations | 76.3 B | 87.6 B |
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| Current Liabilities | 93.5 B | 104.1 B |
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| Total Liabilities | 195.9 B | 205.8 B |
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| Gross Margin | 0.65 | 0.689 |
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| Total Debt | 65.2 B | 60 B |
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| Asset Turnover | 0.52 | 0.559 |
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| Current Assets | 186.8 B | 184.3 B |
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| Total Assets | 369 B | 412 B |
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Microsoft F Score Driver Matrix
One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Microsoft's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Microsoft in a much-optimized way.
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About Microsoft Piotroski F Score
F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.Book Value per Share |
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Microsoft Current Valuation Drivers
We derive many important indicators used in calculating different scores of Microsoft from analyzing Microsoft's financial statements. These drivers represent accounts that assess Microsoft's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Microsoft's important valuation drivers and their relationship over time.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 (projected) | ||
| Net Income Per Employee | 272.5 K | 270.92 K | 338.51 K | 329.13 K | 327.43 K | 267.7 K | |
| Revenue Per Employee | 873.91 K | 875 K | 928.66 K | 897.15 K | 958.89 K | 855.24 K | |
| Average Assets | 266.58 B | 287.13 B | 311.95 B | 346.31 B | 379.1 B | 342.44 B | |
| Earnings Before Interest Taxes and Depreciation Amortization EBITDA | 58.06 B | 68.42 B | 85.13 B | 100.24 B | 105.14 B | 88.55 B | |
| Earnings Before Interest Taxes and Depreciation Amortization USD | 58.06 B | 68.42 B | 85.13 B | 100.24 B | 105.14 B | 88.55 B | |
| Earnings before Tax | 43.69 B | 53.04 B | 71.1 B | 83.72 B | 89.31 B | 73.65 B | |
| Average Equity | 93.82 B | 112.24 B | 132.53 B | 160.36 B | 189.4 B | 161.19 B | |
| Enterprise Value | 973.97 B | 1,479.54 B | 1,982.23 B | 1,877.43 B | 2,488.18 B | 2,684.61 B | |
| Free Cash Flow | 38.26 B | 45.23 B | 56.12 B | 65.15 B | 59.48 B | 53.84 B | |
| Invested Capital | 111.91 B | 113.08 B | 125.05 B | 147.45 B | 179.28 B | 149.43 B | |
| Invested Capital Average | 108.1 B | 113.54 B | 120.65 B | 141.25 B | 166.07 B | 139.37 B | |
| Market Capitalization | 1,026.51 B | 1,543.31 B | 2,040.3 B | 1,920.84 B | 2,532.08 B | 2,731.98 B | |
| Tangible Asset Value | 236.78 B | 250.92 B | 276.27 B | 286.02 B | 334.72 B | 302.46 B | |
| Working Capital | 106.13 B | 109.61 B | 95.75 B | 74.6 B | 80.11 B | 93.24 B |
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 |
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.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.
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Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Microsoft using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.Build Optimal Portfolios
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Check out Microsoft Altman Z Score, Microsoft Correlation, Microsoft Valuation, as well as analyze Microsoft Alpha and Beta and Microsoft Hype 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 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'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 0.202 | Dividend Share 2.72 | Earnings Share 9.68 | Revenue Per Share 28.46 | Quarterly Revenue Growth 0.083 |
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.