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

Each cell as a share of that year’s total assets.

Balance Sheet

Assets, liabilities, and equity

33 accounts · 10 years

Total assets $619.0B

Total liabilities $275.5B

Shareholders equity $343.5B

Account	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
Assets
Cash and Cash Equivalents	4.9%	3.6%	8.4%	3.8%	4.3%	4.5%	4.0%	4.6%	3.1%	3.4%
Short Term Investments	10.4%	11.2%	18.6%	24.9%	34.8%	40.8%	42.7%	47.1%	51.1%	56.2%
Accounts Receivable	11.3%	11.1%	11.8%	12.1%	11.4%	10.6%	10.3%	10.2%	9.0%	9.4%
Inventory	0.2%	0.2%	—	—	—	—	—	—	—	—
Prepaid Expenses	4.2%	5.1%	5.3%	4.6%	4.0%	3.8%	3.5%	2.6%	2.0%	3.0%
Other Current Assets	4.2%	5.1%	—	—	—	—	—	—	—	—
Total Current Assets	30.9%	31.2%	44.7%	46.5%	55.2%	60.4%	61.3%	65.5%	65.0%	72.2%
Property,Plant and Equipment	33.1%	26.5%	23.2%	20.4%	17.9%	14.7%	12.7%	11.4%	9.5%	9.5%
Operating Lease Assets	4.0%	3.7%	3.5%	3.6%	3.3%	2.9%	2.6%	2.6%	2.6%	0.0%
Goodwill	19.3%	23.3%	16.5%	18.5%	14.9%	14.4%	14.7%	13.8%	14.0%	9.2%
Intangible Assets	3.7%	5.4%	2.3%	3.1%	2.3%	2.3%	2.7%	3.1%	4.0%	1.9%
Long Term Investments	2.5%	2.9%	2.4%	1.9%	1.8%	1.0%	0.9%	0.7%	2.4%	5.4%
Other Noncurrent Assets	6.6%	7.1%	7.4%	6.0%	4.5%	4.4%	5.1%	2.9%	2.4%	1.8%
Total Assets	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%
Liabilities
Accounts Payable	4.5%	4.3%	4.4%	5.2%	4.5%	4.2%	3.3%	3.3%	3.0%	3.6%
Accrued Liabilities	4.0%	3.7%	3.6%	3.6%	3.5%	3.3%	3.3%	3.4%	3.1%	3.1%
Deferred Revenue	10.4%	11.2%	—	—	—	—	—	—	—	—
Current Portion of Long Term Debt	0.5%	0.4%	1.3%	0.8%	2.4%	1.2%	1.9%	1.5%	0.4%	0.0%
Operating Lease Liabilities	2.8%	3.0%	—	—	—	—	—	—	—	—
Other Current Liabilities	4.0%	3.7%	—	—	—	—	—	—	—	—
Total Current Liabilities	22.8%	24.5%	25.3%	26.1%	26.6%	24.0%	24.2%	22.6%	22.3%	30.7%
Long Term Debt	6.5%	8.3%	10.2%	12.9%	15.0%	19.8%	23.3%	27.9%	30.4%	21.0%
Deferred Revenue Noncurrent	0.4%	0.5%	—	—	—	—	—	—	—	—
Operating Lease Liabilities Noncurrent	2.8%	3.0%	3.1%	3.1%	2.9%	2.5%	2.2%	2.2%	2.1%	—
Deferred Tax Liabilities	0.5%	2.4%	2.5%	2.5%	3.1%	2.9%	1.8%	1.3%	4.0%	2.3%
Other Noncurrent Liabilities	7.3%	5.3%	4.4%	4.3%	4.0%	3.5%	2.6%	2.0%	1.4%	7.1%
Total Liabilities	44.5%	47.6%	49.9%	54.4%	57.5%	60.7%	64.3%	68.0%	65.0%	62.8%
Equity
Common Stock	17.6%	19.7%	22.7%	23.8%	24.9%	26.7%	27.4%	27.5%	27.7%	35.2%
Retained Earnings	38.4%	33.8%	28.8%	23.1%	17.1%	11.5%	8.4%	5.3%	7.1%	1.2%
Treasury Stock	0.0%	0.0%	—	—	—	—	—	3.3%	4.1%	7.6%
Accumulated Other Comprehensive Income	-0.5%	-1.1%	-1.5%	-1.3%	0.5%	1.1%	-0.1%	-0.8%	0.3%	0.8%
Total Stockholders Equity	55.5%	52.4%	50.1%	45.6%	42.5%	39.3%	35.7%	32.0%	35.0%	42.9%
Total Liabilitiesand Equity	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	105.7%

Income Statement

Revenue, expense, and profitability

20 accounts · 10 years

Revenue $281.7B

Operating income $128.5B

Net income $101.8B

Account	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
IncomeStatement
Revenues Total Revenue	45.5%	47.9%	51.4%	54.3%	50.4%	47.5%	43.9%	42.6%	38.6%	47.1%
Expenses Cost of Revenue	14.2%	14.5%	16.0%	17.2%	15.6%	15.3%	15.0%	14.8%	13.7%	16.9%
Expenses Research and Development	5.2%	5.8%	6.6%	6.7%	6.2%	6.4%	5.9%	5.7%	5.2%	6.2%
Expenses Selling,General and Administrative	1.2%	1.5%	—	—	—	—	—	—	—	—
Expenses Depreciation and Amortization	3.6%	3.0%	2.7%	3.5%	2.8%	3.6%	3.4%	3.0%	2.4%	2.5%
Expenses Share Based Compensation	1.9%	2.1%	2.3%	2.1%	1.8%	1.8%	1.6%	1.5%	1.3%	1.4%
Expenses Operating Expenses	10.6%	12.0%	—	—	—	—	—	—	—	—
Other Income Expense Gross Profit	31.3%	33.4%	35.5%	37.2%	34.7%	32.2%	28.9%	27.8%	24.9%	30.2%
Other Income Expense Operating Income	20.8%	21.4%	21.5%	22.9%	20.9%	17.6%	15.0%	13.5%	11.6%	13.5%
Other Income Expense Interest Income	0.4%	0.6%	0.7%	0.6%	0.6%	0.9%	1.0%	0.9%	0.6%	0.5%
Other Income Expense Interest Expense	0.2%	0.6%	0.5%	0.6%	0.7%	0.9%	0.9%	1.1%	0.9%	0.6%
Other Income Expense Other Income/expense	-0.8%	-0.3%	-0.1%	-0.0%	0.0%	-0.0%	-0.0%	-0.0%	-0.1%	-0.1%
Other Income Expense Income Before Tax	20.0%	21.0%	21.7%	22.9%	21.3%	17.6%	15.2%	14.1%	11.9%	13.3%
Income Tax Income Tax Expense	3.5%	3.8%	4.1%	3.0%	2.9%	2.9%	1.6%	7.7%	1.8%	2.6%
net Income net Income	16.5%	17.2%	17.6%	19.9%	18.4%	14.7%	13.7%	6.4%	10.2%	10.6%
net Income Comprehensive Income	16.8%	17.4%	17.2%	18.2%	17.9%	15.9%	14.4%	5.3%	9.7%	10.2%
Earnings Per Share Basic Eps	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Earnings Per Share Diluted Eps	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Earnings Per Share Weighted Average Shares Basic	1.2%	1.5%	1.8%	2.1%	2.3%	2.5%	2.7%	3.0%	3.1%	4.1%
Earnings Per Share Weighted Average Shares Diluted	1.2%	1.5%	1.8%	2.1%	2.3%	2.5%	2.7%	3.0%	3.1%	4.1%

Cash Flow Statement

Operating, investing, and financing flows

22 accounts · 10 years

Operating cash flow $136.2B

Investing cash flow $-72.6B

Financing cash flow $-51.7B

Account	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
CashFlow
Operating Activities net Income	16.5%	17.2%	17.6%	19.9%	18.4%	14.7%	13.7%	6.4%	10.2%	10.6%
Operating Activities Depreciation and Amortization	3.6%	3.0%	2.7%	3.5%	2.8%	3.6%	3.4%	3.0%	2.4%	2.5%
Operating Activities Stock Based Compensation	1.9%	2.1%	—	—	—	—	—	—	—	—
Operating Activities Deferred Income Taxes	-1.1%	-0.9%	-1.5%	-1.6%	-0.0%	0.0%	-2.3%	-2.0%	-0.3%	1.3%
Operating Activities Changes In Operating Assets and Liabilities	2.6%	2.9%	1.6%	4.3%	3.5%	1.4%	3.6%	11.2%	2.8%	0.9%
Operating Activities net Cash From Operating Activities	22.0%	23.1%	21.3%	24.4%	23.0%	20.1%	18.2%	17.0%	15.8%	17.2%
Investing Activities Capital Expenditures	10.4%	8.7%	6.8%	6.5%	6.2%	5.1%	4.9%	4.5%	3.2%	4.3%
Investing Activities Purchases of Investments	4.8%	3.5%	9.1%	7.3%	18.9%	25.6%	20.1%	53.1%	70.7%	67.1%
Investing Activities Proceeds From Sale of Investments	2.6%	4.8%	8.1%	4.5%	15.5%	22.1%	7.0%	10.2%	11.2%	11.4%
Investing Activities Other Investing Activities	-0.4%	0.3%	—	—	—	—	—	—	—	—
Investing Activities net Cash From Investing Activities	-11.7%	-18.9%	-5.5%	-8.3%	-8.3%	-4.1%	-5.5%	-2.3%	-18.7%	-12.4%
Financing Activities Repayment of Debt	0.5%	5.7%	0.7%	2.5%	1.1%	1.8%	1.4%	3.9%	3.2%	1.4%
Financing Activities Repurchase of Common Stock	3.0%	3.4%	5.4%	9.0%	8.2%	7.6%	6.8%	4.1%	4.7%	8.3%
Financing Activities Dividends Paid	4.0%	4.4%	4.9%	5.1%	5.1%	5.1%	4.9%	5.0%	1.2%	1.4%
Financing Activities Proceeds From Stock Issuance	0.3%	0.4%	0.5%	0.5%	0.5%	0.4%	0.4%	0.4%	0.3%	0.3%
Financing Activities Tax Withholding On Stock Based Compensation	0.9%	1.0%	0.9%	1.3%	1.3%	1.1%	0.9%	0.8%	0.6%	—
Financing Activities Other Financing Activities	-0.4%	-0.3%	—	—	—	—	—	—	—	—
Financing Activities net Cash From Financing Activities	-8.4%	-7.4%	-10.7%	-16.1%	-14.5%	-15.3%	-12.9%	-13.0%	3.4%	-4.3%
Cash Reconciliation Effect of Exchange Rate On Cash	4.9%	3.6%	—	—	—	—	—	—	—	—
Cash Reconciliation net Change In Cash	1.9%	-3.2%	5.0%	-0.1%	0.2%	0.7%	-0.2%	1.7%	0.5%	0.5%
Cash Reconciliation Cash At Beginning of Period	4.9%	3.6%	8.4%	3.8%	4.3%	4.5%	4.0%	4.6%	3.1%	3.4%
Cash Reconciliation Cash At End of Period	4.9%	3.6%	8.4%	3.8%	4.3%	4.5%	4.0%	4.6%	3.1%	3.4%

Key Ratios

Margins, returns, liquidity, leverage, efficiency

Computed at import · 10 years

Ratio	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
Profitability
Gross margin	+68.8%	+69.8%	+68.9%	+68.4%	+68.9%	+67.8%	+65.9%	+65.2%	+64.5%	+64.0%
Operating margin	+45.6%	+44.6%	+41.8%	+42.1%	+41.6%	+37.0%	+34.1%	+31.8%	+30.1%	+28.6%
Net margin	+36.1%	+36.0%	+34.1%	+36.7%	+36.5%	+31.0%	+31.2%	+15.0%	+26.4%	+22.5%
FCF margin	+25.4%	+30.2%	+28.1%	+32.9%	+33.4%	+31.6%	+30.4%	+29.2%	+32.5%	+27.4%
Growth
Revenue CAGR (3y)	+12.4%	+13.4%	+14.0%	+16.4%	+15.1%	+14.0%	+11.3%	+5.7%	—	—
Returns
ROE	+29.6%	+32.8%	+35.1%	+43.7%	+43.2%	+37.4%	+38.3%	+20.0%	+29.1%	+24.7%
ROA	+16.5%	+17.2%	+17.6%	+19.9%	+18.4%	+14.7%	+13.7%	+6.4%	+10.2%	+10.6%
ROIC	+29.7%	+30.3%	+32.8%	+35.8%	+32.4%	+26.3%	+23.6%	+10.8%	+15.7%	+17.8%
Liquidity
Current ratio	1.35x	1.27x	1.77x	1.78x	2.08x	2.52x	2.53x	2.90x	2.92x	2.35x
Quick ratio	0.71x	0.60x	0.80x	0.61x	0.59x	0.63x	0.59x	0.66x	0.54x	0.42x
Leverage
D/E	0.80x	0.91x	1.00x	1.19x	1.35x	1.55x	1.80x	2.13x	1.85x	1.46x
Interest coverage	90.70x	37.29x	44.98x	40.42x	29.80x	20.44x	15.99x	12.83x	13.06x	20.98x
Efficiency
Asset turnover	0.46x	0.48x	0.51x	0.54x	0.50x	0.47x	0.44x	0.43x	0.39x	0.47x
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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