Microsoft

Information Technology Systems Software Redmond, Washington Last filing Jul 30, 2025 · FY2025

                    Revenue
                    FY2025
                
$281.7B
                    3y CAGR +12.4%
                    
                    P71
                    
                    +14.9%
                    
                    Net income
                    FY2025
                
$101.8B
                    Net margin +36.1%
                    
                    P91
                    
                    +15.5%
                    
                    Total assets
                    FY2025
                
$619.0B
                    ROA +16.5%
                    
                    P82
                    
                    +20.9%
                    
                    Operating cash flow
                    FY2025
                
$136.2B
                    FCF margin +25.4%
                    
                    P66
                    
                    +14.9%

18 yrs · FY2008–FY2025 9 filed · 0 derived · 0 blank

1Y 3Y 5Y 10Y

Dollars % of revenue % of assets YoY % CAGR

Balance Sheet

Assets, liabilities, and equity

33 accounts · 5 years

Total assets $619.0B

Total liabilities $275.5B

Shareholders equity $343.5B

Account	2025	2024	2023	2022	2021
Assets
Cash and Cash Equivalents	$30.2B 65.1%	$18.3B -47.2%	$34.7B 149.1%	$13.9B -2.1%	$14.2B
Short Term Investments	$64.3B 12.4%	$57.2B -25.2%	$76.6B -15.7%	$90.8B -21.8%	$116.1B
Accounts Receivable	$69.9B 22.8%	$56.9B 16.9%	$48.7B 10.0%	$44.3B 16.3%	$38.0B
Inventory	$938.0M -24.7%	$1.2B	—	—	—
Prepaid Expenses	$25.7B -1.1%	$26.0B 19.3%	$21.8B 28.9%	$16.9B 26.4%	$13.4B
Other Current Assets	$25.7B -1.1%	$26.0B	—	—	—
Total Current Assets	$191.1B 19.7%	$159.7B -13.3%	$184.3B 8.6%	$169.7B -8.0%	$184.4B
Property,Plant and Equipment	$205.0B 51.2%	$135.6B 41.8%	$95.6B 28.6%	$74.4B 24.6%	$59.7B
Operating Lease Assets	$24.8B 30.9%	$19.0B 32.2%	$14.3B 9.1%	$13.1B 18.6%	$11.1B
Goodwill	$119.5B 0.2%	$119.2B 75.6%	$67.9B 0.5%	$67.5B 35.8%	$49.7B
Intangible Assets	$22.6B -18.1%	$27.6B 194.7%	$9.4B -17.1%	$11.3B 44.8%	$7.8B
Long Term Investments	$15.4B 5.5%	$14.6B 47.8%	$9.9B 43.4%	$6.9B 15.2%	$6.0B
Other Noncurrent Assets	$40.6B 11.3%	$36.5B 19.1%	$30.6B 39.7%	$21.9B 45.3%	$15.1B
Total Assets	$619.0B 20.9%	$512.2B 24.3%	$412.0B 12.9%	$364.8B 9.3%	$333.8B
Liabilities
Accounts Payable	$27.7B 26.0%	$22.0B 21.6%	$18.1B -4.8%	$19.0B 25.3%	$15.2B
Accrued Liabilities	$25.0B 30.4%	$19.2B 30.1%	$14.7B 12.8%	$13.1B 12.0%	$11.7B
Deferred Revenue	$64.6B 12.1%	$57.6B	—	—	—
Current Portion of Long Term Debt	$3.0B 33.3%	$2.2B -57.1%	$5.2B 90.9%	$2.7B -65.9%	$8.1B
Operating Lease Liabilities	$17.4B 12.5%	$15.5B	—	—	—
Other Current Liabilities	$25.0B 30.4%	$19.2B	—	—	—
Total Current Liabilities	$141.2B 12.7%	$125.3B 20.3%	$104.1B 9.5%	$95.1B 7.2%	$88.7B
Long Term Debt	$40.2B -5.9%	$42.7B 1.7%	$42.0B -10.7%	$47.0B -6.1%	$50.1B
Deferred Revenue Noncurrent	$2.7B 4.2%	$2.6B	—	—	—
Operating Lease Liabilities Noncurrent	$17.4B 12.5%	$15.5B 21.8%	$12.7B 10.8%	$11.5B 19.3%	$9.6B
Deferred Tax Liabilities	$2.8B -77.2%	$12.4B 22.3%	$10.2B 9.8%	$9.3B -8.9%	$10.2B
Other Noncurrent Liabilities	$45.2B 67.0%	$27.1B 50.5%	$18.0B 15.8%	$15.5B 15.6%	$13.4B
Total Liabilities	$275.5B 13.1%	$243.7B 18.4%	$205.8B 3.8%	$198.3B 3.4%	$191.8B
Equity
Common Stock	$109.1B 8.1%	$100.9B 7.7%	$93.7B 7.8%	$86.9B 4.6%	$83.1B
Retained Earnings	$237.7B 37.3%	$173.1B 45.7%	$118.8B 41.0%	$84.3B 47.7%	$57.1B
Treasury Stock	$0	$0	—	—	—
Accumulated Other Comprehensive Income	$-3.3B 40.1%	$-5.6B 11.9%	$-6.3B -35.6%	$-4.7B -356.8%	$1.8B
Total Stockholders Equity	$343.5B 27.9%	$268.5B 30.2%	$206.2B 23.8%	$166.5B 17.3%	$142.0B
Total Liabilitiesand Equity	$619.0B 20.9%	$512.2B 24.3%	$412.0B 12.9%	$364.8B 9.3%	$333.8B

Income Statement

Revenue, expense, and profitability

20 accounts · 5 years

Revenue $281.7B

Operating income $128.5B

Net income $101.8B

Account	2025	2024	2023	2022	2021
IncomeStatement
Revenues Total Revenue	$281.7B 14.9%	$245.1B 15.7%	$211.9B 6.9%	$198.3B 18.0%	$168.1B
Expenses Cost of Revenue	$87.8B 18.5%	$74.1B 12.5%	$65.9B 5.1%	$62.6B 19.9%	$52.2B
Expenses Research and Development	$32.5B 10.1%	$29.5B 8.5%	$27.2B 10.9%	$24.5B 18.3%	$20.7B
Expenses Selling,General and Administrative	$7.2B -5.1%	$7.6B	—	—	—
Expenses Depreciation and Amortization	$22.0B 44.7%	$15.2B 38.2%	$11.0B -12.7%	$12.6B 35.5%	$9.3B
Expenses Share Based Compensation	$12.0B 11.6%	$10.7B 11.7%	$9.6B 28.1%	$7.5B 22.6%	$6.1B
Expenses Operating Expenses	$65.4B 6.2%	$61.6B	—	—	—
Other Income Expense Gross Profit	$193.9B 13.4%	$171.0B 17.1%	$146.1B 7.7%	$135.6B 17.1%	$115.9B
Other Income Expense Operating Income	$128.5B 17.4%	$109.4B 23.6%	$88.5B 6.2%	$83.4B 19.3%	$69.9B
Other Income Expense Interest Income	$2.6B -16.2%	$3.2B 5.4%	$3.0B 43.0%	$2.1B -1.7%	$2.1B
Other Income Expense Interest Expense	$1.4B -51.7%	$2.9B 49.1%	$2.0B -4.6%	$2.1B -12.1%	$2.3B
Other Income Expense Other Income/expense	$-4.7B -258.2%	$-1.3B -491.5%	$-223.0M -596.9%	$-32.0M -132.7%	$98.0M
Other Income Expense Income Before Tax	$123.6B 14.7%	$107.8B 20.7%	$89.3B 6.7%	$83.7B 17.7%	$71.1B
Income Tax Income Tax Expense	$21.8B 10.9%	$19.7B 15.9%	$16.9B 54.4%	$11.0B 11.7%	$9.8B
net Income net Income	$101.8B 15.5%	$88.1B 21.8%	$72.4B -0.5%	$72.7B 18.7%	$61.3B
net Income Comprehensive Income	$104.1B 17.1%	$88.9B 25.7%	$70.7B 6.7%	$66.2B 10.6%	$59.9B
Earnings Per Share Basic Eps	$14 15.5%	$12 22.0%	$10 0.2%	$10 19.5%	$8
Earnings Per Share Diluted Eps	$14 15.6%	$12 21.9%	$10 0.3%	$10 19.9%	$8
Earnings Per Share Weighted Average Shares Basic	$7.4B 0.0%	$7.4B -0.2%	$7.4B -0.7%	$7.5B -0.7%	$7.5B
Earnings Per Share Weighted Average Shares Diluted	$7.5B -0.1%	$7.5B 0.0%	$7.5B -0.9%	$7.5B -0.9%	$7.6B

Cash Flow Statement

Operating, investing, and financing flows

22 accounts · 5 years

Operating cash flow $136.2B

Investing cash flow $-72.6B

Financing cash flow $-51.7B

Account	2025	2024	2023	2022	2021
CashFlow
Operating Activities net Income	$101.8B 15.5%	$88.1B 21.8%	$72.4B -0.5%	$72.7B 18.7%	$61.3B
Operating Activities Depreciation and Amortization	$22.0B 44.7%	$15.2B 38.2%	$11.0B -12.7%	$12.6B 35.5%	$9.3B
Operating Activities Stock Based Compensation	$12.0B 11.6%	$10.7B	—	—	—
Operating Activities Deferred Income Taxes	$-7.1B -48.9%	$-4.7B 21.8%	$-6.1B -6.3%	$-5.7B -3701.3%	$-150.0M
Operating Activities Changes In Operating Assets and Liabilities	$16.3B 10.0%	$14.8B 126.2%	$6.5B -58.0%	$15.6B 34.3%	$11.6B
Operating Activities net Cash From Operating Activities	$136.2B 14.9%	$118.5B 35.4%	$87.6B -1.6%	$89.0B 16.0%	$76.7B
Investing Activities Capital Expenditures	$64.6B 45.1%	$44.5B 58.2%	$28.1B 17.7%	$23.9B 15.8%	$20.6B
Investing Activities Purchases of Investments	$29.8B 67.9%	$17.7B -52.9%	$37.7B 42.3%	$26.5B -58.0%	$62.9B
Investing Activities Proceeds From Sale of Investments	$16.1B -35.1%	$24.8B -26.1%	$33.5B 103.7%	$16.5B -68.2%	$51.8B
Investing Activities Other Investing Activities	$-2.3B -278.5%	$1.3B	—	—	—
Investing Activities net Cash From Investing Activities	$-72.6B 25.1%	$-97.0B -327.6%	$-22.7B 25.2%	$-30.3B -9.9%	$-27.6B
Financing Activities Repayment of Debt	$3.2B -88.9%	$29.1B 957.1%	$2.8B -69.5%	$9.0B 140.6%	$3.8B
Financing Activities Repurchase of Common Stock	$18.4B 6.8%	$17.3B -22.4%	$22.2B -32.0%	$32.7B 19.4%	$27.4B
Financing Activities Dividends Paid	$24.7B 10.7%	$22.3B 10.2%	$20.2B 9.1%	$18.6B 10.0%	$16.9B
Financing Activities Proceeds From Stock Issuance	$2.1B 2.7%	$2.0B 7.3%	$1.9B 1.4%	$1.8B 8.7%	$1.7B
Financing Activities Tax Withholding On Stock Based Compensation	$5.4B 1.9%	$5.3B 39.5%	$3.8B -19.1%	$4.7B 6.8%	$4.4B
Financing Activities Other Financing Activities	$-2.3B -75.0%	$-1.3B	—	—	—
Financing Activities net Cash From Financing Activities	$-51.7B -36.9%	$-37.8B 14.1%	$-43.9B 25.4%	$-58.9B -21.4%	$-48.5B
Cash Reconciliation Effect of Exchange Rate On Cash	$30.2B 65.1%	$18.3B	—	—	—
Cash Reconciliation net Change In Cash	$11.9B 172.8%	$-16.4B -178.9%	$20.8B 7189.8%	$-293.0M -145.2%	$648.0M
Cash Reconciliation Cash At Beginning of Period	$30.2B 65.1%	$18.3B -47.2%	$34.7B 149.1%	$13.9B -2.1%	$14.2B
Cash Reconciliation Cash At End of Period	$30.2B 65.1%	$18.3B -47.2%	$34.7B 149.1%	$13.9B -2.1%	$14.2B

Key Ratios

Margins, returns, liquidity, leverage, efficiency

Computed at import · 5 years

Ratio	2025	2024	2023	2022	2021
Profitability
Gross margin	+68.8%	+69.8%	+68.9%	+68.4%	+68.9%
Operating margin	+45.6%	+44.6%	+41.8%	+42.1%	+41.6%
Net margin	+36.1%	+36.0%	+34.1%	+36.7%	+36.5%
FCF margin	+25.4%	+30.2%	+28.1%	+32.9%	+33.4%
Growth
Revenue CAGR (3y)	+12.4%	+13.4%	+14.0%	+16.4%	+15.1%
Returns
ROE	+29.6%	+32.8%	+35.1%	+43.7%	+43.2%
ROA	+16.5%	+17.2%	+17.6%	+19.9%	+18.4%
ROIC	+29.7%	+30.3%	+32.8%	+35.8%	+32.4%
Liquidity
Current ratio	1.35x	1.27x	1.77x	1.78x	2.08x
Quick ratio	0.71x	0.60x	0.80x	0.61x	0.59x
Leverage
D/E	0.80x	0.91x	1.00x	1.19x	1.35x
Interest coverage	90.70x	37.29x	44.98x	40.42x	29.80x
Efficiency
Asset turnover	0.46x	0.48x	0.51x	0.54x	0.50x
Cash conversion cycle	-21d	-17d	—	—	—

Valuation

Price against fundamentals

MSFT $510 · 2025-09-12 · 368d old · FY2025

Market cap $3.8T

P/E 37.38x

P/S 13.51x

P/B 11.08x

EV $3.8T

EV/EBITDA 25.37x

FCF yield +1.9%

Dividend yield +0.6%

Notes

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