Microsoft Historical Financial Ratios

MSFT Stock  USD 421.43  0.22  0.05%   
Microsoft is lately reporting on over 109 different financial statement accounts. To analyze all of these accounts together requires a lot of time and effort. However, using these accounts to derive some meaningful and actionable indicators such as Dividend Yield of 0.0067 will help investors to properly organize and evaluate Microsoft financial condition quickly.
  
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.

About Microsoft Financial Ratios Analysis

MicrosoftFinancial ratios are relationships based on a company's financial information. They can serve as useful tools to evaluate Microsoft investment potential. Financial ratio analysis can also be defined as the process of presenting financial ratios, which are mathematical indicators calculated by comparing key financial information appearing on Microsoft financial statements. Financial ratios are useful tools that help investors analyze and compare relationships between different pieces of financial information across Microsoft history.

Microsoft Financial Ratios Chart

Microsoft financial ratios usually calculated using numerical values taken directly from Microsoft financial statements such as income statements or balance sheets. They help investors to obtain meaningful information about Microsoft. Most financial ratios help to conduct quantitative analysis to assess vital information about the company's valuation as well as profitability and liquidity indicators such as leverage, growth, profit margins, and different types of rates of return.
At this time, Microsoft's Effective Tax Rate is comparatively stable compared to the past year. Cash Per Share is likely to gain to 14.12 in 2024, whereas Price To Sales Ratio is likely to drop 8.75 in 2024.

Price To Sales Ratio

Price to Sales Ratio is figured by comparing Microsoft stock price to its revenues. An advantage to using Price to Sales ratio is that it is based on Microsoft sales, a figure that is much harder to manipulate than other Microsoft multiples. Because sales tend to be more stable P/S ratio can be a good tool for screening cyclical companies fluctuating earnings patterns. A valuation ratio that compares a company’s stock price to its revenues, calculated by dividing the company’s market cap by its total sales or revenue over a 12-month period.

Dividend Yield

Dividend Yield is Microsoft dividend as a percentage of Microsoft stock price. Microsoft dividend yield is a measure of Microsoft stock productivity, which can be interpreted as interest rate earned on an Microsoft investment. A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, calculated as annual dividends per share divided by price per share.
Most ratios from Microsoft's fundamentals are interrelated and interconnected. However, analyzing fundamentals ratios one by one will only give a small insight into Microsoft current financial condition. On the other hand, looking into the entire matrix of fundamentals ratios, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. 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.At this time, Microsoft's Effective Tax Rate is comparatively stable compared to the past year. Cash Per Share is likely to gain to 14.12 in 2024, whereas Price To Sales Ratio is likely to drop 8.75 in 2024.
 2021 2022 2023 2024 (projected)
Price Earnings Ratio26.4735.0440.331.86
Short Term Coverage Ratios32.3916.6919.219.02

Microsoft fundamentals Correlations

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Click cells to compare fundamentals

Microsoft Account Relationship Matchups

Microsoft fundamentals Accounts

201920202021202220232024 (projected)
Short Term Coverage Ratios16.189.5132.3916.6919.219.02
Price Earnings Ratio34.9733.3726.4735.0440.331.86
Price To Sales Ratio10.8312.169.7111.9713.768.75
Dividend Yield0.0097740.0080810.009420.0078090.0070280.006676
Operating Cycle96.71101.03103.2897.71112.37120.87
Price Book Value Ratio13.0914.411.5612.314.149.01
Price Earnings To Growth Ratio2.520.841.36169.95152.96160.61
Days Of Payables Outstanding99.25105.96110.69100.28115.32144.6
Operating Cash Flow Per Share7.9710.1711.8811.7610.5911.12
Price To Operating Cash Flows Ratio25.5226.6421.6228.9533.2922.18
Free Cash Flow Per Share5.947.448.697.997.197.55
Price To Free Cash Flows Ratio34.2436.4329.5542.6349.0328.52
Inventory Turnover24.3219.8116.7426.3523.7124.9
Payables Turnover4.573.683.443.33.282.62
Effective Tax Rate0.10.170.140.130.220.32
Company Equity Multiplier2.82.552.352.192.01.39
Cash Per Share17.9417.2713.9814.9413.4514.12
Interest Coverage20.4429.840.4244.9851.7395.26
Return On Capital Employed0.20.230.290.310.330.36
Debt Equity Ratio0.60.480.370.290.260.22
Quick Ratio2.331.91.571.541.772.63
Dividend Paid And Capex Coverage Ratio(199.59)(18.71)(15.48)(10.54)(12.12)(12.73)
Net Income Per E B T0.90.830.860.870.730.57
Cash Conversion Cycle(2.55)(4.93)(7.41)(2.56)(2.31)(2.42)
Days Of Inventory Outstanding15.0118.4221.813.8515.9315.14
Days Of Sales Outstanding81.782.6181.4883.8675.4751.86
Cash Flow Coverage Ratios0.851.131.451.461.681.6
Price To Book Ratio13.0914.411.5612.314.149.01
Current Ratio2.522.081.781.772.033.32

Microsoft Investors Sentiment

The influence of Microsoft's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Microsoft. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Microsoft's public news can be used to forecast risks associated with an investment in Microsoft. The trend in average sentiment can be used to explain how an investor holding Microsoft can time the market purely based on public headlines and social activities around Microsoft. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Microsoft's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Microsoft's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Microsoft's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Microsoft.

Microsoft Implied Volatility

    
  21.32  
Microsoft's implied volatility exposes the market's sentiment of Microsoft stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Microsoft's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Microsoft stock will not fluctuate a lot when Microsoft's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Microsoft in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Microsoft's short interest history, or implied volatility extrapolated from Microsoft options trading.

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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:
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

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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.