Microsoft Historical Income Statement

MSFT Stock  USD 447.67  2.11  0.47%   
Historical analysis of Microsoft income statement accounts such as Total Revenue of 255.9 B can show how well Microsoft performed in making a profits. Evaluating Microsoft income statement over time to spot trends is a great complementary tool to traditional technical analysis and can indicate the direction of Microsoft's future profits or losses.
 
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Financial Statement Analysis is much more than just reviewing and examining Microsoft latest accounting reports to predict its past. Macroaxis encourages investors to analyze financial statements over time for various trends across multiple indicators and accounts to determine whether Microsoft is a good buy for the upcoming year.
  
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 closely tied 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 Income Statement Analysis

Microsoft Income Statement consists of revenues and expenses along with the resulting net income or loss. It represents the profit for the accounting period attributable to Microsoft shareholders. The income statement also shows Microsoft investors and management if the firm made money during the period reported. The result of an income statement is the net income that is calculated after subtracting the expenses from revenue. It is essential to investors both as an absolute measure as well as earnings per share (i.e., EPS).

Microsoft Income Statement Chart

At this time, Microsoft's Cost Of Revenue is comparatively stable compared to the past year. Total Operating Expenses is likely to gain to about 69.5 B in 2024, whereas Selling And Marketing Expenses is likely to drop slightly above 17.4 B in 2024.

Total Revenue

Total revenue comprises all receipts Microsoft generated from the sale of its products or services. The total amount of income generated by the sale of goods or services related to the company's primary operations.

Gross Profit

Gross profit is a required income statement account that reflects total revenue of Microsoft minus its cost of goods sold. It is profit before Microsoft operating expenses, interest payments and taxes. Gross profit is also known as gross margin. The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Other Operating Expenses

Other Operating Expenses is the expense which generally does not depend on sales or production quantities of Microsoft. It is also known as Microsoft overhead expenses. Typically these expenses include marketing, rent and utilities, office, leases, and other overhead cost. Expenses incurred from non-core business activities, including administrative and general expenses, but excluding costs directly related to production.
Most accounts from Microsoft's income statement are interrelated and interconnected. However, analyzing income statement accounts one by one will only give a small insight into Microsoft current financial condition. On the other hand, looking into the entire matrix of income statement accounts, 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 closely tied 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 Cost Of Revenue is comparatively stable compared to the past year. Total Operating Expenses is likely to gain to about 69.5 B in 2024, whereas Selling And Marketing Expenses is likely to drop slightly above 17.4 B in 2024.
 2021 2022 2023 2024 (projected)
Gross Profit135.6B146.1B168.0B176.4B
Total Revenue198.3B211.9B243.7B255.9B

Microsoft income statement Correlations

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Click cells to compare fundamentals

Microsoft Account Relationship Matchups

Microsoft income statement Accounts

201920202021202220232024 (projected)
Depreciation And Amortization12.8B11.7B14.5B13.9B15.9B16.7B
Interest Expense2.6B2.3B2.1B2.0B2.3B2.4B
Selling General Administrative5.1B5.1B5.9B7.6B8.7B4.7B
Total Revenue143.0B168.1B198.3B211.9B243.7B255.9B
Gross Profit96.9B115.9B135.6B146.1B168.0B176.4B
Other Operating Expenses90.1B98.2B114.9B123.4B141.9B149.0B
Operating Income53.0B69.9B83.4B88.5B101.8B106.9B
Ebit55.6B72.1B85.4B91.3B105.0B110.2B
Ebitda68.4B83.8B99.9B105.2B120.9B127.0B
Cost Of Revenue46.1B52.2B62.7B65.9B75.7B79.5B
Total Operating Expenses44.0B45.9B52.2B57.5B66.2B69.5B
Income Before Tax53.0B71.1B83.7B89.3B102.7B107.8B
Total Other Income Expense Net(12M)1.4B302M(238M)(214.2M)(203.5M)
Net Income44.3B61.3B72.7B72.4B83.2B87.4B
Income Tax Expense8.8B9.8B11.0B17.0B19.5B20.5B
Research Development19.3B20.7B24.5B27.2B31.3B32.8B
Net Income Applicable To Common Shares44.3B61.3B72.7B72.4B83.2B87.4B
Selling And Marketing Expenses19.6B20.1B21.8B22.8B26.2B17.4B
Net Income From Continuing Ops44.3B61.3B72.7B72.4B83.2B87.4B
Non Operating Income Net Other729M77M1.2B333M383.0M605.6M
Tax Provision8.8B9.8B11.0B17.0B19.5B10.3B
Net Interest Income(2.6B)(215M)31M1.0B1.2B1.2B
Interest Income2.7B2.1B2.1B1.0B1.2B1.6B
Reconciled Depreciation12.8B11.7B14.5B13.9B15.9B13.1B

Pair Trading with Microsoft

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Microsoft position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Microsoft will appreciate offsetting losses from the drop in the long position's value.

Moving against Microsoft Stock

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The ability to find closely correlated positions to Microsoft could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microsoft when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Microsoft - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Microsoft to buy it.
The correlation of Microsoft is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Microsoft moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microsoft moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Microsoft can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Additional 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.