Microsoft Interest Expense vs Operating Income Analysis

MSFT Stock  USD 420.72  0.71  0.17%   
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 Interest Expense and its Operating Income 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.

Interest Expense vs Operating Income

Interest Expense vs Operating Income Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Microsoft Interest Expense account and Operating Income. At this time, the significance of the direction appears to have strong relationship.
The correlation between Microsoft's Interest Expense and Operating Income is 0.63. Overlapping area represents the amount of variation of Interest Expense that can explain the historical movement of Operating Income in the same time period over historical financial statements of Microsoft, assuming nothing else is changed. The correlation between historical values of Microsoft's Interest Expense and Operating Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Interest Expense of Microsoft are associated (or correlated) with its Operating Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Operating Income has no effect on the direction of Interest Expense i.e., Microsoft's Interest Expense and Operating Income go up and down completely randomly.

Correlation Coefficient

0.63
Relationship DirectionPositive 
Relationship StrengthSignificant

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.

Operating Income

Operating Income is the amount of profit realized from Microsoft operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Microsoft is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.
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.Selling General Administrative is likely to drop to about 5.2 B in 2024. Tax Provision is likely to drop to about 10.3 B in 2024
 2021 2022 2023 2024 (projected)
Gross Profit135.6B146.1B168.0B176.4B
Total Revenue198.3B211.9B243.7B255.9B

Microsoft fundamental ratios Correlations

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0.210.520.130.280.070.050.57-0.050.030.070.020.550.09-0.030.350.320.070.150.330.090.40.030.050.20.11
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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

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

    
  17.1  
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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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
11.04
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.