Microsoft Cost of Revenue vs Income Tax Expense Analysis

MSFT Stock  USD 413.64  8.26  1.96%   
Microsoft financial indicator trend analysis is infinitely more than just investigating Microsoft recent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Microsoft is a good investment. Please check the relationship between Microsoft Cost Of Revenue and its Income Tax Expense accounts. 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.

Cost Of Revenue vs Income Tax Expense

Cost of Revenue vs Income Tax Expense Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Microsoft Cost of Revenue account and Income Tax Expense. At this time, the significance of the direction appears to have very strong relationship.
The correlation between Microsoft's Cost of Revenue and Income Tax Expense is 0.81. Overlapping area represents the amount of variation of Cost of Revenue that can explain the historical movement of Income Tax Expense in the same time period over historical financial statements of Microsoft, assuming nothing else is changed. The correlation between historical values of Microsoft's Cost of Revenue and Income Tax Expense is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Cost of Revenue of Microsoft are associated (or correlated) with its Income Tax Expense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Income Tax Expense has no effect on the direction of Cost of Revenue i.e., Microsoft's Cost of Revenue and Income Tax Expense go up and down completely randomly.

Correlation Coefficient

0.81
Relationship DirectionPositive 
Relationship StrengthStrong

Cost Of Revenue

Cost of Revenue is found on Microsoft income statement and represents the costs associated with goods and services Microsoft provides. Indirect cost, such as salaries, is not included. In other words, cost of revenue is the total cost incurred to obtain a sale. It is more than the traditional cost of goods sold, since it includes specific selling and marketing activities.

Income Tax Expense

Most indicators from Microsoft's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Microsoft current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, 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 Sales General And Administrative To Revenue is comparatively stable compared to the past year. Enterprise Value is likely to gain to about 2 T in 2024, whereas Selling General Administrative is likely to drop slightly above 4.7 B in 2024.
 2021 2022 2023 2024 (projected)
Gross Profit135.6B146.1B168.0B176.4B
Total Revenue198.3B211.9B243.7B255.9B

Microsoft fundamental ratios Correlations

0.740.980.990.960.940.360.90.90.970.940.760.99-0.660.870.710.96-0.660.960.960.930.90.940.210.890.97
0.740.740.720.520.530.880.410.480.60.570.920.62-0.480.970.570.56-0.320.890.630.870.480.530.520.80.62
0.980.740.970.930.950.370.90.880.970.960.70.97-0.750.870.640.96-0.70.960.980.890.880.950.180.860.97
0.990.720.970.960.940.350.890.890.970.930.750.98-0.630.840.740.95-0.640.950.950.930.890.940.280.880.97
0.960.520.930.960.970.080.970.950.980.960.580.99-0.630.690.670.98-0.710.850.950.820.950.970.070.80.97
0.940.530.950.940.970.10.990.950.990.990.510.97-0.770.70.580.99-0.780.840.990.770.951.00.050.780.97
0.360.880.370.350.080.1-0.050.010.180.140.790.22-0.170.760.390.120.050.60.220.60.010.10.570.530.23
0.90.410.90.890.970.99-0.050.960.970.970.40.94-0.740.60.540.98-0.780.760.960.690.960.99-0.050.720.94
0.90.480.880.890.950.950.010.960.940.950.490.92-0.710.640.480.95-0.770.780.930.741.00.950.030.720.88
0.970.60.970.970.980.990.180.970.940.990.580.99-0.740.760.630.99-0.760.890.990.830.940.990.070.840.98
0.940.570.960.930.960.990.140.970.950.990.520.96-0.80.740.520.99-0.790.860.990.770.950.990.020.780.95
0.760.920.70.750.580.510.790.40.490.580.520.66-0.260.90.70.55-0.180.870.580.940.490.510.550.770.63
0.990.620.970.980.990.970.220.940.920.990.960.66-0.650.790.690.98-0.710.910.970.880.920.970.090.850.99
-0.66-0.48-0.75-0.63-0.63-0.77-0.17-0.74-0.71-0.74-0.8-0.26-0.65-0.59-0.17-0.740.65-0.63-0.79-0.46-0.71-0.77-0.03-0.52-0.67
0.870.970.870.840.690.70.760.60.640.760.740.90.79-0.590.630.72-0.460.970.790.930.640.70.350.870.78
0.710.570.640.740.670.580.390.540.480.630.520.70.69-0.170.630.6-0.310.710.570.770.480.580.320.790.72
0.960.560.960.950.980.990.120.980.950.990.990.550.98-0.740.720.6-0.750.860.990.80.950.990.070.780.97
-0.66-0.32-0.7-0.64-0.71-0.780.05-0.78-0.77-0.76-0.79-0.18-0.710.65-0.46-0.31-0.75-0.57-0.76-0.43-0.77-0.780.15-0.56-0.68
0.960.890.960.950.850.840.60.760.780.890.860.870.91-0.630.970.710.86-0.570.90.970.780.840.330.920.9
0.960.630.980.950.950.990.220.960.930.990.990.580.97-0.790.790.570.99-0.760.90.820.930.990.090.810.97
0.930.870.890.930.820.770.60.690.740.830.770.940.88-0.460.930.770.8-0.430.970.820.740.770.40.880.85
0.90.480.880.890.950.950.010.961.00.940.950.490.92-0.710.640.480.95-0.770.780.930.740.950.030.720.88
0.940.530.950.940.971.00.10.990.950.990.990.510.97-0.770.70.580.99-0.780.840.990.770.950.050.780.97
0.210.520.180.280.070.050.57-0.050.030.070.020.550.09-0.030.350.320.070.150.330.090.40.030.050.20.11
0.890.80.860.880.80.780.530.720.720.840.780.770.85-0.520.870.790.78-0.560.920.810.880.720.780.20.86
0.970.620.970.970.970.970.230.940.880.980.950.630.99-0.670.780.720.97-0.680.90.970.850.880.970.110.86
Click cells to compare fundamentals

Microsoft Account Relationship Matchups

Microsoft fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets301.3B333.8B364.8B412.0B473.8B497.5B
Short Long Term Debt Total71.0B67.8B61.3B60.0B69.0B72.4B
Other Current Liab20.0B23.9B27.8B29.9B34.4B36.1B
Total Current Liabilities72.3B88.7B95.1B104.1B119.8B125.8B
Total Stockholder Equity118.3B142.0B166.5B206.2B237.2B249.0B
Property Plant And Equipment Net44.2B70.8B87.5B110.0B126.5B132.8B
Net Debt57.4B53.6B47.3B25.3B29.1B30.5B
Retained Earnings34.6B57.1B84.3B118.8B136.7B143.5B
Cash13.6B14.2B13.9B34.7B39.9B41.9B
Non Current Assets Total119.4B149.4B195.2B227.7B261.9B275.0B
Non Currrent Assets Other13.1B15.1B21.9B30.6B35.2B37.0B
Cash And Short Term Investments136.5B130.3B104.8B111.3B128.0B134.3B
Net Receivables32.0B38.0B44.3B48.7B56.0B58.8B
Common Stock Shares Outstanding7.7B7.6B7.5B7.5B6.7B7.2B
Liabilities And Stockholders Equity301.3B333.8B364.8B412.0B473.8B497.5B
Non Current Liabilities Total110.7B103.1B103.2B101.6B116.8B122.7B
Inventory1.9B2.6B3.7B2.5B2.9B3.0B
Other Current Assets11.5B13.4B16.9B21.8B25.1B26.3B
Other Stockholder Equity3.2B1.8B(4.7B)(6.3B)(5.7B)(5.4B)
Total Liab183.0B191.8B198.3B205.8B236.6B248.4B
Property Plant And Equipment Gross96.1B122.2B147.2B178.2B205.0B215.2B
Total Current Assets181.9B184.4B169.7B184.3B211.9B222.5B
Accumulated Other Comprehensive Income3.2B1.8B(4.7B)(6.3B)(7.3B)(6.9B)
Cash And Equivalents13.6B14.2B13.9B34.7B39.9B41.9B
Property Plant Equipment44.2B70.8B87.5B110.0B126.5B132.8B
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
Common Stock Total Equity78.5B80.6B83.1B86.9B100.0B65.5B
Short Term Investments123.0B116.1B90.8B76.6B88.0B68.3B
Other Assets13.1B15.1B21.9B30.6B35.2B37.0B
Current Deferred Revenue36B41.5B45.5B50.9B58.5B61.5B
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
Retained Earnings Total Equity24.2B34.6B57.1B84.3B96.9B101.8B
Deferred Long Term Liab233M204M198M230M207M196.7M

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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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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
11.04
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.