Microsoft Financial Ratios Analysis

MSFT Stock

USD 407.57 6.61 1.65%

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 Microsoft Valuation and Microsoft Correlation analysis.

For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.

At this time, Microsoft's Interest Coverage is comparatively stable compared to the past year. Payout Ratio is likely to gain to 0.32 in 2024, whereas PTB Ratio is likely to drop 9.01 in 2024.

For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.At this time, Microsoft's Interest Coverage is comparatively stable compared to the past year. Payout Ratio is likely to gain to 0.32 in 2024, whereas PTB Ratio is likely to drop 9.01 in 2024.

	2021	2022	2023	2024 (projected)
Dividend Yield	0.00942	0.007809	0.007028	0.006676
Price To Sales Ratio	9.71	11.97	13.76	8.75

Dividend Yield Price To Sales Ratio

Microsoft fundamentals Correlations

	Price To Sales Ratio	Dividend Yield	Ptb Ratio	Days Sales Outstanding	Book Value Per Share	Free Cash Flow Yield	Invested Capital	Operating Cash Flow Per Share	Capex To Depreciation	Pb Ratio	Ev To Sales	Free Cash Flow Per Share	Roic	Inventory Turnover	Net Income Per Share	Days Of Inventory On Hand	Payables Turnover	Capex To Revenue	Cash Per Share	Pocfratio	Interest Coverage	Payout Ratio	Capex To Operating Cash Flow	Pfcf Ratio	Days Payables Outstanding	Income Quality
Price To Sales Ratio		-0.68	0.97	0.19	0.84	-0.86	0.01	0.88	-0.2	0.97	1.0	0.86	0.63	0.83	0.88	-0.57	-0.64	-0.83	0.56	0.99	-0.22	-0.33	-0.48	0.98	0.59	-0.53
Dividend Yield	-0.68		-0.71	0.21	-0.45	0.74	0.28	-0.5	0.78	-0.71	-0.64	-0.44	-0.7	-0.4	-0.56	-0.1	0.6	0.84	0.02	-0.68	-0.49	0.68	0.82	-0.73	-0.56	0.61
Ptb Ratio	0.97	-0.71		0.23	0.73	-0.89	0.15	0.83	-0.21	1.0	0.98	0.81	0.55	0.77	0.81	-0.52	-0.54	-0.83	0.61	0.95	-0.24	-0.29	-0.52	0.94	0.48	-0.44
Days Sales Outstanding	0.19	0.21	0.23		0.0	-0.05	0.31	0.09	0.44	0.23	0.23	0.15	-0.13	0.07	0.03	-0.3	0.22	0.17	0.39	0.12	-0.59	0.17	0.29	0.11	-0.4	0.11
Book Value Per Share	0.84	-0.45	0.73	0.0		-0.65	-0.12	0.97	-0.03	0.73	0.83	0.95	0.6	0.86	0.96	-0.71	-0.76	-0.69	0.53	0.84	-0.27	-0.18	-0.27	0.8	0.76	-0.5
Free Cash Flow Yield	-0.86	0.74	-0.89	-0.05	-0.65		-0.19	-0.71	0.39	-0.89	-0.86	-0.65	-0.42	-0.62	-0.7	0.31	0.43	0.93	-0.54	-0.88	0.1	0.22	0.78	-0.89	-0.42	0.37
Invested Capital	0.01	0.28	0.15	0.31	-0.12	-0.19		0.01	0.49	0.15	0.09	0.03	-0.58	0.14	-0.12	-0.38	0.45	-0.02	0.72	0.0	-0.67	0.57	0.06	-0.04	-0.41	0.54
Operating Cash Flow Per Share	0.88	-0.5	0.83	0.09	0.97	-0.71	0.01		-0.01	0.83	0.89	0.99	0.61	0.86	0.98	-0.73	-0.73	-0.72	0.62	0.87	-0.33	-0.2	-0.29	0.82	0.72	-0.48
Capex To Depreciation	-0.2	0.78	-0.21	0.44	-0.03	0.39	0.49	-0.01		-0.21	-0.13	0.07	-0.52	0.13	-0.12	-0.62	0.29	0.55	0.52	-0.23	-0.85	0.69	0.82	-0.33	-0.28	0.47
Pb Ratio	0.97	-0.71	1.0	0.23	0.73	-0.89	0.15	0.83	-0.21		0.98	0.81	0.55	0.77	0.81	-0.52	-0.54	-0.83	0.61	0.95	-0.24	-0.29	-0.52	0.94	0.48	-0.44
Ev To Sales	1.0	-0.64	0.98	0.23	0.83	-0.86	0.09	0.89	-0.13	0.98		0.87	0.58	0.84	0.87	-0.61	-0.6	-0.81	0.62	0.98	-0.29	-0.27	-0.44	0.96	0.55	-0.48
Free Cash Flow Per Share	0.86	-0.44	0.81	0.15	0.95	-0.65	0.03	0.99	0.07	0.81	0.87		0.59	0.85	0.97	-0.77	-0.72	-0.65	0.64	0.83	-0.38	-0.18	-0.2	0.77	0.69	-0.46
Roic	0.63	-0.7	0.55	-0.13	0.6	-0.42	-0.58	0.61	-0.52	0.55	0.58	0.59		0.43	0.73	-0.1	-0.8	-0.57	-0.11	0.59	0.37	-0.86	-0.37	0.6	0.72	-0.92
Inventory Turnover	0.83	-0.4	0.77	0.07	0.86	-0.62	0.14	0.86	0.13	0.77	0.84	0.85	0.43		0.83	-0.83	-0.56	-0.61	0.69	0.83	-0.41	-0.11	-0.19	0.77	0.57	-0.39
Net Income Per Share	0.88	-0.56	0.81	0.03	0.96	-0.7	-0.12	0.98	-0.12	0.81	0.87	0.97	0.73	0.83		-0.65	-0.78	-0.74	0.51	0.86	-0.2	-0.36	-0.33	0.82	0.76	-0.63
Days Of Inventory On Hand	-0.57	-0.1	-0.52	-0.3	-0.71	0.31	-0.38	-0.73	-0.62	-0.52	-0.61	-0.77	-0.1	-0.83	-0.65		0.31	0.23	-0.84	-0.55	0.8	-0.3	-0.27	-0.45	-0.33	0.05
Payables Turnover	-0.64	0.6	-0.54	0.22	-0.76	0.43	0.45	-0.73	0.29	-0.54	-0.6	-0.72	-0.8	-0.56	-0.78	0.31		0.58	-0.11	-0.62	-0.2	0.54	0.26	-0.58	-0.97	0.71
Capex To Revenue	-0.83	0.84	-0.83	0.17	-0.69	0.93	-0.02	-0.72	0.55	-0.83	-0.81	-0.65	-0.57	-0.61	-0.74	0.23	0.58		-0.36	-0.85	-0.12	0.39	0.84	-0.88	-0.6	0.49
Cash Per Share	0.56	0.02	0.61	0.39	0.53	-0.54	0.72	0.62	0.52	0.61	0.62	0.64	-0.11	0.69	0.51	-0.84	-0.11	-0.36		0.54	-0.84	0.4	0.01	0.46	0.12	0.11
Pocfratio	0.99	-0.68	0.95	0.12	0.84	-0.88	0.0	0.87	-0.23	0.95	0.98	0.83	0.59	0.83	0.86	-0.55	-0.62	-0.85	0.54		-0.19	-0.29	-0.52	0.99	0.58	-0.5
Interest Coverage	-0.22	-0.49	-0.24	-0.59	-0.27	0.1	-0.67	-0.33	-0.85	-0.24	-0.29	-0.38	0.37	-0.41	-0.2	0.8	-0.2	-0.12	-0.84	-0.19		-0.65	-0.46	-0.11	0.21	-0.36
Payout Ratio	-0.33	0.68	-0.29	0.17	-0.18	0.22	0.57	-0.2	0.69	-0.29	-0.27	-0.18	-0.86	-0.11	-0.36	-0.3	0.54	0.39	0.4	-0.29	-0.65		0.42	-0.34	-0.44	0.88
Capex To Operating Cash Flow	-0.48	0.82	-0.52	0.29	-0.27	0.78	0.06	-0.29	0.82	-0.52	-0.44	-0.2	-0.37	-0.19	-0.33	-0.27	0.26	0.84	0.01	-0.52	-0.46	0.42		-0.6	-0.28	0.33
Pfcf Ratio	0.98	-0.73	0.94	0.11	0.8	-0.89	-0.04	0.82	-0.33	0.94	0.96	0.77	0.6	0.77	0.82	-0.45	-0.58	-0.88	0.46	0.99	-0.11	-0.34	-0.6		0.54	-0.51
Days Payables Outstanding	0.59	-0.56	0.48	-0.4	0.76	-0.42	-0.41	0.72	-0.28	0.48	0.55	0.69	0.72	0.57	0.76	-0.33	-0.97	-0.6	0.12	0.58	0.21	-0.44	-0.28	0.54		-0.63
Income Quality	-0.53	0.61	-0.44	0.11	-0.5	0.37	0.54	-0.48	0.47	-0.44	-0.48	-0.46	-0.92	-0.39	-0.63	0.05	0.71	0.49	0.11	-0.5	-0.36	0.88	0.33	-0.51	-0.63

Click cells to compare fundamentals

Microsoft Account Relationship Matchups

Microsoft fundamentals Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Price To Sales Ratio	10.83	12.16	9.71	11.97	13.76	8.75
Dividend Yield	0.009774	0.008081	0.00942	0.007809	0.007028	0.006676
Ptb Ratio	13.09	14.4	11.56	12.3	14.14	9.01
Book Value Per Share	15.55	18.81	22.22	27.7	24.93	26.17
Free Cash Flow Yield	0.0292	0.0274	0.0338	0.0235	0.0211	0.0397
Invested Capital	0.77	0.6	0.48	0.37	0.29	0.26
Pb Ratio	13.09	14.4	11.56	12.3	14.14	9.01
Ev To Sales	11.23	12.48	9.95	12.08	13.9	8.7
Inventory Turnover	24.32	19.81	16.74	26.35	23.71	24.9
Net Income Per Share	5.82	8.12	9.7	9.72	8.75	9.18
Payables Turnover	4.57	3.68	3.44	3.3	3.28	2.62
Cash Per Share	17.94	17.27	13.98	14.94	13.45	14.12
Pocfratio	25.52	26.64	21.62	28.95	33.29	22.18
Interest Coverage	20.44	29.8	40.42	44.98	51.73	95.26
Pfcf Ratio	34.24	36.43	29.55	42.63	49.03	28.52
Income Quality	1.37	1.25	1.22	1.21	1.09	1.18
Roe	0.38	0.37	0.43	0.44	0.32	0.24
Pe Ratio	34.97	33.37	26.47	35.04	40.3	31.86
Ev To Free Cash Flow	35.51	37.39	30.28	43.06	49.52	28.45
Earnings Yield	0.0377	0.0286	0.03	0.0378	0.0285	0.0257
Current Ratio	2.52	2.08	1.78	1.77	2.03	3.32
Receivables Turnover	4.47	4.42	4.48	4.35	5.01	6.94
Graham Number	45.11	58.62	69.65	77.82	70.04	73.54

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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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Check out Microsoft Valuation and Microsoft Correlation 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 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

11.06

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.

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Microsoft Financial Ratios Analysis

Microsoft fundamentals Correlations

Microsoft Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Microsoft fundamentals Accounts

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COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Ev To Sales	+ 1.0	Price To Sales Ratio
Pb Ratio	+ 1.0	Ptb Ratio
Pocfratio	+ 0.99	Price To Sales Ratio
Free Cash Flow Per Share	+ 0.99	Operating Cash Flow Per Share
Pfcf Ratio	+ 0.99	Pocfratio
Pfcf Ratio	+ 0.98	Price To Sales Ratio

Days Payables Outstanding	- 0.97	Payables Turnover
Income Quality	- 0.92	Roic
Pfcf Ratio	- 0.89	Free Cash Flow Yield
Pb Ratio	- 0.89	Free Cash Flow Yield
Free Cash Flow Yield	- 0.89	Ptb Ratio
Pfcf Ratio	- 0.88	Capex To Revenue