Hey All,
Thanks for visiting my Microsoft Financial Report page. On this page, you will be able to find preliminary information about Microsoft's current financial performance as well as some historical track records and trends.
For a more detailed examination of Microsoft's financial performance, I offer two reports, which are "A Beginner's Guide to Microsoft Financial Analysis" and "Microsoft Financial Report by Paul Borosky, MBA." Both reports are written by myself, Paul Borosky, MBA., Doctoral Candidate and published author, and include:
- Summarized income statements for the last 5 years.
- Summarized balance sheets for the last 5 years.
- Five years’ worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
- Line-by-line description, explanation, and analysis tip for most financial statement line items and financial ratios.
- Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
- Each section includes an “in other words” segment. This is where I use plain English to explain concepts.
For a MORE in-depth review of the company's financial statements and ratios, make sure to buy my "Microsoft Financial Report". The financial report includes all aspects of my "Beginner's Guide" plus a whole lot more...
- Professional financial analysis of important income statements, balance sheets, and financial ratio trends.
- "Letter Grade" is assigned to most financial statement line items and financial ratios to help you better understand their overall trends for the last 5 years (Starting in 2021).
- Overall financial analysis summary for the company.
Enjoy the preliminary information and for a more detailed analysis, buy the financial report!
Sincerely,
Paul, MBA.
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Sample Financial Report


Microsoft: Brief Summary
Microsoft's headquarters is located in Redmond, Washington. The company competes in the software infrastructure sector—specifically, the technology industry. At present, the organization employs approximately 160,000 individuals. Microsoft sells its products globally, with a heavy presence in the United States, Europe, Asia, and the Middle East. Their main revenue generators are software license sales, game sales, hardware, and cloud computing services.
From a financial perspective, Microsoft's market capitalization is about $1.6 trillion. Their beta is .82. This indicates that the company's stock is slightly less risky than the overall market. Its stock price range for the last 52 weeks has been between $132.52 to $232.86. In the last year, their dividend payout has increased moderately. At present, the dividend yield is 1.06%.
Microsoft Financial Report Sources
“Microsoft 2022 Company Analysis: Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by Paul Borosky, MBA., and owner of Quality Business Plan. In this book, the author selected Microsoft's 2018 10k, 2017 10k annual report, 2016 10k annual report, 2022 10k annual report, and Microsoft's 2019 10k annual report as the basis for information gathering.
Section 1: Microsoft Income Statement Analyzed
Revenues:
Microsoft’s revenues in 2018 were $110.3 billion. In 2022, their revenues were $198.2 billion. On average, this is an annual growth rate of 15.8%. This trend indicates the organization is doing a decent job in growing yearly revenues. From an investor’s perspective, this is a good trend.
Analyst Grade: A
Microsoft 2021 Summary Income Statement |
|||||
Column1 |
2021 |
2020 | 2019 | 2018 |
2017 |
Revenues |
168,088 |
143,015 | 125,843 | 110,360 |
89,950 |
COGS |
52,232 |
46,078 | 42,910 | 38,353 |
34,261 |
Gross Profit |
115,856 |
96,937 | 82,933 | 72,007 |
55,689 |
SG&A |
25,224 |
24,709 | 23,098 | 22,223 |
20,020 |
Depreciation |
11,686 |
12,796 | 11,682 | 10,261 |
8,778 |
R & D |
20,716 |
19,269 | 16,876 | 14,726 |
13,037 |
Other | - | - | - | ||
Total Operating Expenses |
46,585 |
56,774 | 39,974 | 36,949 |
33,057 |
EBIT |
69,271 |
52,959 | 42,959 | 35,058 |
22,632 |
Other Income | - | - | - | - | |
Interest Expense |
2,346 |
2,591 | 2,686 | 2,733 |
2,222 |
EBT |
71,102 |
53,036 | 43,688 | 36,474 |
23,149 |
Taxes |
9,831 |
8,755 | 4,448 | 19,903 |
1,945 |
Net Income |
61,271 |
44,291 | 39,240 | 16,571 |
21,204 |
Section 2: Microsoft Balance Sheet Analyzed
For the Microsoft Inc. balance sheet, I again go through each important line item from the balance sheet. In reviewing each line item, I will define Microsoft’s balance sheet line item, such as cash, property, plant and equipment, and liabilities. Next, I then offer a summary analysis of Microsoft’s essential balance sheet line items.
Cash:
Microsoft’s cash holding in 2018 was $11.9 billion or 10.8% as compared to sales. In 2022, their cash was $13.9 billion, or 7% of sales. This trend indicates that the organization was able to decrease its cash position as compared to sales from the previously stated year. This decrease elevates Microsoft’s ability to utilize its cash for growth and other opportunities fully. From an investor’s perspective, this is a good trend.
Analyst Grade: A
Microsoft 2021 Summary Balance Sheet |
|||||
Column1 |
2021 |
2020 | 2019 | 2018 |
2017 |
Cash |
14,224 |
13,576 | 11,356 | 11,946 |
7,663 |
Short Term Investment |
116,110 |
122,951 | 122,463 | 121,822 |
125,318 |
Account Receivable |
38,043 |
32,011 | 29,524 | 26,481 |
19,792 |
Inventory |
2,636 |
1,895 | 2,063 | 2,662 |
2,181 |
Other | - | - | - | - | - |
Current Assets |
184,406 |
181,915 | 175,552 | 169,662 |
159,851 |
Net PPE |
59,715 |
52,904 | 43,856 | 36,146 |
23,734 |
Goodwill |
49,711 |
43,351 | 42,026 | 35,683 |
35,122 |
Other | - | - | - | - | - |
Total Assets |
333,779 |
301,311 | 286,556 | 258,848 |
241,086 |
Accounts Payable |
15,163 |
12,530 | 9,382 | 8,617 |
7,390 |
Accrued Expense |
10,057 |
7,874 | 6,830 | 6,103 |
5,819 |
Accrued Taxes |
2,174 |
2,130 | 5,665 | 2,121 |
718 |
Notes Payable | - | - |
- |
9,072 |
|
LT Debt - Current |
8,072 |
3,749 | 5,516 | 3,998 |
6,280 |
Other | - | - | - | - | - |
Total Current Liabilities |
88,657 |
72,310 | 69,420 | 58,488 |
64,527 |
LT Debt |
50,074 |
59,578 | 66,662 | 72,242 |
76,073 |
Other | - | - | - | - | - |
Total Liabilities |
191,791 |
183,007 | 184,226 | 176,130 |
168,692 |
Common Stock |
83,111 |
80,552 | 78,520 | 71,223 |
69,315 |
Treasury | - | - | - | - | - |
Retained Earnings |
57,055 |
34,566 | 24,150 | 13,682 |
2,648 |
Other | - | - | - | - | - |
Total Equity |
141,988 |
118,304 | 102,330 | 82,718 |
72,394 |
Total Equity & Liability |
333,779 |
301,311 | 286,556 | 258,848 |
241,086 |
Section 3: Microsoft Financial Ratios Analyzed
For this section, I have chosen several different financial ratios to review for Microsoft. In reviewing each of Microsoft’s financial ratios, I first define the financial ratio. Next, I supply the financial formula for calculating the specific ratio. Finally, I offer a brief analysis of Microsoft’s Important Financial ratios.
Microsoft Current Ratio
Microsoft’s current ratio is 2018 was 2.9. In 2022, their current ratio was 1.78. This trend indicates that the organization better aligns its current assets with its current liabilities. However, obtaining a current ratio of 1.0 would serve the firm better. From this, investors should consider this a good trend.
Analyst Grade: B
Microsoft Return on Assets
Microsoft’s return on assets (ROA) in 2018 was 6.4%. In 2022, their ROA was 19.94%. This trend indicates the organization is increasing the utilization of assets under management for revenue generation purposes. From an investor’s perspective, this is a good trend. Making more money with the same or fewer assets… Sweet!
Analyst Grade: A