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Microsoft Corporation (MSFT) 10-Year Financial Performance & Capital Metrics

MSFT • • Industrial / General
TechnologyInfrastructure SoftwareCloud Infrastructure & Data ManagementCloud Computing & Development Platforms
AboutMicrosoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company operates in three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Skype for Business; Skype, Outlook.com, OneDrive, and LinkedIn; and Dynamics 365, a set of cloud-based and on-premises business solutions for organizations and enterprise divisions. The Intelligent Cloud segment licenses SQL, Windows Servers, Visual Studio, System Center, and related Client Access Licenses; GitHub that provides a collaboration platform and code hosting service for developers; Nuance provides healthcare and enterprise AI solutions; and Azure, a cloud platform. It also offers enterprise support, Microsoft consulting, and nuance professional services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions; and training and certification on Microsoft products. The More Personal Computing segment provides Windows original equipment manufacturer (OEM) licensing and other non-volume licensing of the Windows operating system; Windows Commercial, such as volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; and Windows Internet of Things. It also offers Surface, PC accessories, PCs, tablets, gaming and entertainment consoles, and other devices; Gaming, including Xbox hardware, and Xbox content and services; video games and third-party video game royalties; and Search, including Bing and Microsoft advertising. The company sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online stores, and retail stores. Microsoft Corporation was founded in 1975 and is headquartered in Redmond, Washington.Show more
  • Revenue $281.72B +14.9%
  • EBITDA $162.68B +23.5%
  • Net Income $101.83B +15.5%
  • EPS (Diluted) 13.64 +15.6%
  • Gross Margin 68.82% -1.3%
  • EBITDA Margin 57.74% +7.5%
  • Operating Margin 45.62% +2.2%
  • Net Margin 36.15% +0.5%
  • ROE 33.28% -10.4%
  • ROIC 27.9% -6.7%
  • Debt/Equity 0.18 -29.5%
  • Interest Coverage 53.89 +44.5%
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓Excellent 3Y average ROE of 36.4%
  • ✓Strong 5Y profit CAGR of 18.1%
  • ✓FCF machine: 25.4% free cash flow margin
  • ✓19 consecutive years of dividend growth
  • ✓High quality earnings: Operating CF exceeds net income
  • ✓Strong 5Y sales CAGR of 14.5%

✗Weaknesses

  • ✗Expensive at 10.2x book value

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y11.65%
5Y14.52%
3Y12.42%
TTM15.59%

Profit (Net Income) CAGR

10Y23.65%
5Y18.12%
3Y11.87%
TTM15.91%

EPS CAGR

10Y24.87%
5Y18.82%
3Y12.23%
TTM16.01%

ROCE

10Y Avg25.36%
5Y Avg30.75%
3Y Avg30.63%
Latest29.73%

Peer Comparison

Cloud Computing & Development Platforms
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Sector-Specific
NameMarket CapCurrent PriceP/E RatioRevenue Growth 1YNet MarginROEFCF YieldDebt/Equity
TUYATuya Inc.1.22B2.27267.0629.84%9.12%2.88%5.5%0.00
NTNXNutanix, Inc.14.23B52.6180.9418.11%8.43%5.27%
DOCNDigitalOcean Holdings, Inc.4.98B54.3961.1112.66%29.15%1.93%
ORCLOracle Corporation581.21B202.2946.618.38%25.28%50.65%4.96
WIXWix.com Ltd.4.96B90.3338.2812.74%7.2%9.68%
MSFTMicrosoft Corporation3.5T470.6734.5114.93%35.71%28.9%2.05%0.18
GDDYGoDaddy Inc.14.77B109.2816.947.5%17.01%9.03%8.54%5.63
DOXAmdocs Limited8.94B82.8116.40-9.43%12.48%16.29%7.22%0.24

Profit & Loss

Jun 2016Jun 2017Jun 2018Jun 2019Jun 2020Jun 2021Jun 2022Jun 2023Jun 2024Jun 2025
Sales/Revenue+91.15B96.57B110.36B125.84B143.01B168.09B198.27B211.91B245.12B281.72B
Revenue Growth %-0.03%0.06%0.14%0.14%0.14%0.18%0.18%0.07%0.16%0.15%
Cost of Goods Sold+32.78B34.26B38.35B42.91B46.08B52.23B62.65B65.86B74.11B87.83B
COGS % of Revenue0.36%0.35%0.35%0.34%0.32%0.31%0.32%0.31%0.3%0.31%
Gross Profit+58.37B62.31B72.01B82.93B96.94B115.86B135.62B146.05B171.01B193.89B
Gross Margin %0.64%0.65%0.65%0.66%0.68%0.69%0.68%0.69%0.7%0.69%
Gross Profit Growth %-0.04%0.07%0.16%0.15%0.17%0.2%0.17%0.08%0.17%0.13%
Operating Expenses+32.3B32.98B36.95B39.97B43.98B45.94B52.24B57.53B61.58B65.36B
OpEx % of Revenue0.35%0.34%0.33%0.32%0.31%0.27%0.26%0.27%0.25%0.23%
Selling, General & Admin19.2B19.94B22.22B23.1B24.71B25.22B27.73B30.33B32.06B32.88B
SG&A % of Revenue0.21%0.21%0.2%0.18%0.17%0.15%0.14%0.14%0.13%0.12%
Research & Development11.99B13.04B14.73B16.88B19.27B20.72B24.51B27.2B29.51B32.49B
R&D % of Revenue0.13%0.13%0.13%0.13%0.13%0.12%0.12%0.13%0.12%0.12%
Other Operating Expenses1.11B306M00000000
Operating Income+26.08B29.02B35.06B42.96B52.96B69.92B83.38B88.52B109.43B128.53B
Operating Margin %0.29%0.3%0.32%0.34%0.37%0.42%0.42%0.42%0.45%0.46%
Operating Income Growth %0.44%0.11%0.21%0.23%0.23%0.32%0.19%0.06%0.24%0.17%
EBITDA+32.7B37.8B45.32B54.64B65.75B81.6B97.84B102.38B131.72B162.68B
EBITDA Margin %0.36%0.39%0.41%0.43%0.46%0.49%0.49%0.48%0.54%0.58%
EBITDA Growth %0.36%0.16%0.2%0.21%0.2%0.24%0.2%0.05%0.29%0.24%
D&A (Non-Cash Add-back)6.62B8.78B10.26B11.68B12.8B11.69B14.46B13.86B22.29B34.15B
EBIT26.88B32.12B39.21B46.37B55.63B73.45B85.78B91.28B110.72B126.01B
Net Interest Income+-1.24B-835M-519M76M89M-215M31M1.03B222M262M
Interest Income01.39B2.21B2.76B2.68B2.13B2.09B2.99B3.16B2.65B
Interest Expense1.24B2.22B2.73B2.69B2.59B2.35B2.06B1.97B2.94B2.38B
Other Income/Expense-439M876M1.42B729M77M1.19B333M788M-1.65B-4.9B
Pretax Income+25.64B29.9B36.47B43.69B53.04B71.1B83.72B89.31B107.79B123.63B
Pretax Margin %0.28%0.31%0.33%0.35%0.37%0.42%0.42%0.42%0.44%0.44%
Income Tax+5.1B4.41B19.9B4.45B8.76B9.83B10.98B16.95B19.65B21.8B
Effective Tax Rate %0.8%0.85%0.45%0.9%0.83%0.86%0.87%0.81%0.82%0.82%
Net Income+20.54B25.49B16.57B39.24B44.28B61.27B72.74B72.36B88.14B101.83B
Net Margin %0.23%0.26%0.15%0.31%0.31%0.36%0.37%0.34%0.36%0.36%
Net Income Growth %0.68%0.24%-0.35%1.37%0.13%0.38%0.19%-0.01%0.22%0.16%
Net Income (Continuing)20.54B25.49B16.57B39.24B44.28B61.27B72.74B72.36B88.14B101.83B
Discontinued Operations0000000000
Minority Interest0000000000
EPS (Diluted)+2.103.252.135.065.768.059.659.6811.8013.64
EPS Growth %0.42%0.55%-0.34%1.38%0.14%0.4%0.2%0%0.22%0.16%
EPS (Basic)2.123.292.155.115.828.129.709.7211.8613.70
Diluted Shares Outstanding8.01B7.83B7.79B7.75B7.68B7.61B7.54B7.47B7.47B7.46B
Basic Shares Outstanding7.92B7.75B7.7B7.67B7.61B7.55B7.5B7.45B7.43B7.43B
Dividend Payout Ratio0.54%0.46%0.77%0.35%0.34%0.27%0.25%0.27%0.25%0.24%

Balance Sheet

Jun 2016Jun 2017Jun 2018Jun 2019Jun 2020Jun 2021Jun 2022Jun 2023Jun 2024Jun 2025
Total Current Assets+139.66B162.7B169.66B175.55B181.91B184.41B169.68B184.26B159.73B191.13B
Cash & Short-Term Investments113.24B132.98B133.77B133.82B136.53B130.26B104.75B111.26B75.53B94.56B
Cash Only6.51B7.66B11.95B11.36B13.58B14.22B13.93B34.7B18.32B30.24B
Short-Term Investments106.73B125.32B121.82B122.46B122.95B116.03B90.82B76.55B57.22B64.32B
Accounts Receivable18.28B22.43B26.48B29.52B32.01B38.04B44.26B48.69B56.92B69.91B
Days Sales Outstanding73.1984.7887.5885.6381.782.6181.4883.8684.7690.57
Inventory2.25B2.18B2.66B2.06B1.9B2.64B3.74B2.5B1.25B938M
Days Inventory Outstanding25.0623.2425.3317.5515.0118.4221.813.856.143.9
Other Current Assets5.89B5.1B6.75B10.15B11.48B13.47B16.93B21.81B26.03B25.72B
Total Non-Current Assets+53.81B87.62B89.19B111B119.4B149.37B195.16B227.72B352.43B427.87B
Property, Plant & Equipment18.36B30.29B36.15B43.86B52.9B70.8B87.55B109.99B154.55B229.79B
Fixed Asset Turnover4.97x3.19x3.05x2.87x2.70x2.37x2.26x1.93x1.59x1.23x
Goodwill17.87B35.12B35.68B42.03B43.35B49.71B67.52B67.89B119.22B119.51B
Intangible Assets3.73B10.11B8.05B7.75B7.04B7.8B11.3B9.37B27.6B22.6B
Long-Term Investments10.43B6.02B1.86B2.65B2.96B5.98B6.89B9.88B14.6B15.4B
Other Non-Current Assets3.42B6.08B7.44B14.72B13.14B15.07B21.9B30.6B36.46B40.56B
Total Assets+193.47B250.31B258.85B286.56B301.31B333.78B364.84B411.98B512.16B619B
Asset Turnover0.47x0.39x0.43x0.44x0.47x0.50x0.54x0.51x0.48x0.46x
Asset Growth %0.11%0.29%0.03%0.11%0.05%0.11%0.09%0.13%0.24%0.21%
Total Current Liabilities+59.36B55.74B58.49B69.42B72.31B88.66B95.08B104.15B125.29B141.22B
Accounts Payable6.9B7.39B8.62B9.38B12.53B15.16B19B18.09B22B27.72B
Days Payables Outstanding76.8178.7382.0179.899.25105.96110.69100.28108.33115.21
Short-Term Debt12.9B10.12B4B5.52B3.75B8.07B2.75B5.25B8.94B3B
Deferred Revenue (Current)1000K1000K1000K1000K1000K1000K1000K1000K1000K1000K
Other Current Liabilities11.21B13.5B14.85B16.18B17.9B21.72B23.73B25.75B31.75B38.73B
Current Ratio2.35x2.92x2.90x2.53x2.52x2.08x1.78x1.77x1.27x1.35x
Quick Ratio2.31x2.88x2.86x2.50x2.49x2.05x1.75x1.75x1.27x1.35x
Cash Conversion Cycle21.4429.2930.9123.38-2.55-4.93-7.41-2.56-17.43-20.75
Total Non-Current Liabilities+62.11B106.86B117.64B114.81B110.7B103.13B103.22B101.6B118.4B134.31B
Long-Term Debt40.56B76.07B72.24B66.66B59.58B50.07B47.03B41.99B42.69B40.15B
Capital Lease Obligations05.37B5.57B6.19B7.67B9.63B11.49B12.73B15.5B17.44B
Deferred Tax Liabilities1.48B5.73B541M233M204M198M230M433M2.62B2.83B
Other Non-Current Liabilities13.64B17.03B35.48B37.19B40.06B40.62B41.59B43.54B54.99B71.17B
Total Liabilities121.47B162.6B176.13B184.23B183.01B191.79B198.3B205.75B243.69B275.52B
Total Debt+53.46B91.57B81.81B78.37B71B67.78B61.27B59.97B67.13B60.59B
Net Debt46.95B83.9B69.86B67.01B57.42B53.55B47.34B25.26B48.81B30.35B
Debt / Equity0.74x1.04x0.99x0.77x0.60x0.48x0.37x0.29x0.25x0.18x
Debt / EBITDA1.63x2.42x1.81x1.43x1.08x0.83x0.63x0.59x0.51x0.37x
Net Debt / EBITDA1.44x2.22x1.54x1.23x0.87x0.66x0.48x0.25x0.37x0.19x
Interest Coverage20.98x13.06x12.83x15.99x20.44x29.80x40.42x44.98x37.29x53.89x
Total Equity+72B87.71B82.72B102.33B118.3B141.99B166.54B206.22B268.48B343.48B
Equity Growth %-0.1%0.22%-0.06%0.24%0.16%0.2%0.17%0.24%0.3%0.28%
Book Value per Share8.9911.2010.6113.2015.4018.6622.0927.6035.9546.01
Total Shareholders' Equity72B87.71B82.72B102.33B118.3B141.99B166.54B206.22B268.48B343.48B
Common Stock68.18B69.31B71.22B78.52B80.55B83.11B86.94B93.72B100.92B109.09B
Retained Earnings2.28B17.77B13.68B24.15B34.57B57.05B84.28B118.85B173.14B237.73B
Treasury Stock0000000000
Accumulated OCI1.54B627M-2.19B-340M3.19B1.82B-4.68B-6.34B-5.59B-3.35B
Minority Interest0000000000

Cash Flow

Jun 2016Jun 2017Jun 2018Jun 2019Jun 2020Jun 2021Jun 2022Jun 2023Jun 2024Jun 2025
Cash from Operations+33.33B39.51B43.88B52.19B60.67B76.74B89.03B87.58B118.55B136.16B
Operating CF Margin %0.37%0.41%0.4%0.41%0.42%0.46%0.45%0.41%0.48%0.48%
Operating CF Growth %0.12%0.19%0.11%0.19%0.16%0.26%0.16%-0.02%0.35%0.15%
Net Income20.54B25.49B16.57B39.24B44.28B61.27B72.74B72.36B88.14B101.83B
Depreciation & Amortization6.62B8.78B10.26B11.68B12.8B11.69B14.46B13.86B22.29B34.15B
Stock-Based Compensation2.67B3.27B3.94B4.65B5.29B6.12B7.5B9.61B10.73B11.97B
Deferred Taxes2.48B-829M-5.14B-6.46B11M-150M-5.7B-6.06B-4.74B-7.06B
Other Non-Cash Items407M-2.07B-2.21B-792M-219M-1.25B-409M196M305M609M
Working Capital Changes610M4.88B20.47B3.87B-1.48B-936M446M-2.39B1.82B-5.35B
Change in Receivables562M-1.22B-3.86B-2.81B-2.58B-6.48B-6.83B-4.09B-7.19B-10.58B
Change in Inventory600M50M-465M597M168M-737M-1.12B1.24B1.28B309M
Change in Payables88M81M1.15B232M3.02B2.8B2.94B-2.72B3.54B569M
Cash from Investing+-23.95B-46.78B-6.06B-15.77B-12.22B-27.58B-30.31B-22.68B-96.97B-72.6B
Capital Expenditures-8.34B-8.13B-11.63B-13.93B-15.44B-20.62B-23.89B-28.11B-44.48B-64.55B
CapEx % of Revenue0.09%0.08%0.11%0.11%0.11%0.12%0.12%0.13%0.18%0.23%
Acquisitions----------
Investments----------
Other Investing203M-197M-98M0-1.24B-922M-2.83B-3.12B-1.3B2.32B
Cash from Financing+-8.39B8.41B-33.59B-36.89B-46.03B-48.49B-58.88B-43.94B-37.76B-51.7B
Debt Issued (Net)----------
Equity Issued (Net)----------
Dividends Paid-11.01B-11.85B-12.7B-13.81B-15.14B-16.52B-18.14B-19.8B-21.77B-24.08B
Share Repurchases----------
Other Financing-369M-190M-971M-675M-3.75B-2.52B-863M-1.01B-1.31B-2.29B
Net Change in Cash----------
Free Cash Flow+24.98B31.38B32.25B38.26B45.23B56.12B65.15B59.48B74.07B71.61B
FCF Margin %0.27%0.32%0.29%0.3%0.32%0.33%0.33%0.28%0.3%0.25%
FCF Growth %0.05%0.26%0.03%0.19%0.18%0.24%0.16%-0.09%0.25%-0.03%
FCF per Share3.124.014.144.935.897.388.647.969.929.59
FCF Conversion (FCF/Net Income)1.62x1.55x2.65x1.33x1.37x1.25x1.22x1.21x1.35x1.34x
Interest Paid0000000000
Taxes Paid0000000000

Key Ratios

Metric2016201720182019202020212022202320242025
Return on Equity (ROE)27.01%31.92%19.45%42.41%40.14%47.08%47.15%38.82%37.13%33.28%
Return on Invested Capital (ROIC)17.1%14.98%16.22%20.02%23.02%28.25%30.55%29.81%29.91%27.9%
Gross Margin64.04%64.52%65.25%65.9%67.78%68.93%68.4%68.92%69.76%68.82%
Net Margin22.53%26.39%15.02%31.18%30.96%36.45%36.69%34.15%35.96%36.15%
Debt / Equity0.74x1.04x0.99x0.77x0.60x0.48x0.37x0.29x0.25x0.18x
Interest Coverage20.98x13.06x12.83x15.99x20.44x29.80x40.42x44.98x37.29x53.89x
FCF Conversion1.62x1.55x2.65x1.33x1.37x1.25x1.22x1.21x1.35x1.34x
Revenue Growth-2.59%5.94%14.28%14.03%13.65%17.53%17.96%6.88%15.67%14.93%

Revenue by Segment

2016201720182019202020212022202320242025
Server Products And Tools19.18B21.76B26.13B32.62B41.38B52.59B67.32B79.97B97.73B98.44B
Server Products And Tools Growth-13.46%20.09%24.85%26.84%27.09%28.01%18.79%22.20%0.73%
Microsoft Three Six Five Commercial Products And Cloud Services---------87.77B
Microsoft Three Six Five Commercial Products And Cloud Services Growth----------
Gaming--10.35B11.39B11.57B15.37B16.23B15.47B21.5B23.45B
Gaming Growth---9.98%1.66%32.79%5.60%-4.71%39.03%9.08%
Linked In Corporation-2.27B5.26B6.75B8.08B10.29B13.82B15.14B16.37B17.81B
Linked In Corporation Growth--131.88%28.43%19.59%27.39%34.28%9.62%8.10%8.80%
Devices7.47B4.56B5.13B6.09B6.46B6.79B6.99B5.52B4.71B17.31B
Devices Growth--38.96%12.66%18.72%5.94%5.17%2.95%-21.03%-14.76%267.91%
Search And News Advertising6.1B6.97B7.01B7.63B7.74B8.53B11.59B12.21B12.58B13.88B
Search And News Advertising Growth-14.32%0.59%8.78%1.47%10.18%35.92%5.32%3.01%10.35%
Dynamics Products And Cloud Services-------5.44B6.48B7.83B
Dynamics Products And Cloud Services Growth--------19.20%20.77%
Enterprise Services--5.85B6.12B6.41B6.94B7.41B7.72B7.59B7.76B
Enterprise Services Growth---4.76%4.65%8.33%6.68%4.25%-1.66%2.19%
Microsoft Three Six Five Consumer Products and Cloud Services---------7.4B
Microsoft Three Six Five Consumer Products and Cloud Services Growth----------
Other Products And Services5.85B5.54B2.79B3.07B3.77B4.48B5.29B211M45M72M
Other Products And Services Growth--5.35%-49.57%9.92%22.74%18.87%18.13%-96.01%-78.67%60.00%
Microsoft Office System23.59B25.39B28.32B31.77B35.32B39.87B44.86B48.73B54.88B-
Microsoft Office System Growth-7.64%11.53%12.19%11.16%12.90%12.52%8.62%12.61%-
Windows8.1B8.63B19.52B20.39B22.29B23.23B24.76B21.51B23.24B-
Windows Growth-6.43%126.30%4.49%9.31%4.18%6.60%-13.14%8.08%-
Xbox9.39B9.26B--------
Xbox Growth--1.48%--------
Consulting And Product Support Services5.64B5.59B--------
Consulting And Product Support Services Growth--0.94%--------

Revenue by Geography

2016201720182019202020212022202320242025
UNITED STATES40.58B45.25B55.93B64.2B73.16B83.95B100.22B106.74B124.7B144.55B
UNITED STATES Growth-11.51%23.60%14.79%13.96%14.75%19.37%6.51%16.83%15.91%
Non Us44.74B44.7B54.43B61.64B69.86B84.14B98.05B105.17B120.42B137.18B
Non Us Growth--0.09%21.77%13.25%13.32%20.44%16.54%7.26%14.50%13.92%

Frequently Asked Questions

Valuation & Price

Microsoft Corporation (MSFT) has a price-to-earnings (P/E) ratio of 34.5x. This suggests investors expect higher future growth.

Growth & Financials

Microsoft Corporation (MSFT) reported $293.81B in revenue for fiscal year 2025. This represents a 299% increase from $73.72B in 2012.

Microsoft Corporation (MSFT) grew revenue by 14.9% over the past year. This is steady growth.

Yes, Microsoft Corporation (MSFT) is profitable, generating $104.91B in net income for fiscal year 2025 (36.1% net margin).

Dividend & Returns

Yes, Microsoft Corporation (MSFT) pays a dividend with a yield of 0.69%. This makes it attractive for income-focused investors.

Microsoft Corporation (MSFT) has a return on equity (ROE) of 33.3%. This is excellent, indicating efficient use of shareholder capital.

Microsoft Corporation (MSFT) generated $78.02B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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