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 · 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	4.9%	3.6%	8.4%	3.8%	4.3%
Short Term Investments	10.4%	11.2%	18.6%	24.9%	34.8%
Accounts Receivable	11.3%	11.1%	11.8%	12.1%	11.4%
Inventory	0.2%	0.2%	—	—	—
Prepaid Expenses	4.2%	5.1%	5.3%	4.6%	4.0%
Other Current Assets	4.2%	5.1%	—	—	—
Total Current Assets	30.9%	31.2%	44.7%	46.5%	55.2%
Property,Plant and Equipment	33.1%	26.5%	23.2%	20.4%	17.9%
Operating Lease Assets	4.0%	3.7%	3.5%	3.6%	3.3%
Goodwill	19.3%	23.3%	16.5%	18.5%	14.9%
Intangible Assets	3.7%	5.4%	2.3%	3.1%	2.3%
Long Term Investments	2.5%	2.9%	2.4%	1.9%	1.8%
Other Noncurrent Assets	6.6%	7.1%	7.4%	6.0%	4.5%
Total Assets	100.0%	100.0%	100.0%	100.0%	100.0%
Liabilities
Accounts Payable	4.5%	4.3%	4.4%	5.2%	4.5%
Accrued Liabilities	4.0%	3.7%	3.6%	3.6%	3.5%
Deferred Revenue	10.4%	11.2%	—	—	—
Current Portion of Long Term Debt	0.5%	0.4%	1.3%	0.8%	2.4%
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%
Long Term Debt	6.5%	8.3%	10.2%	12.9%	15.0%
Deferred Revenue Noncurrent	0.4%	0.5%	—	—	—
Operating Lease Liabilities Noncurrent	2.8%	3.0%	3.1%	3.1%	2.9%
Deferred Tax Liabilities	0.5%	2.4%	2.5%	2.5%	3.1%
Other Noncurrent Liabilities	7.3%	5.3%	4.4%	4.3%	4.0%
Total Liabilities	44.5%	47.6%	49.9%	54.4%	57.5%
Equity
Common Stock	17.6%	19.7%	22.7%	23.8%	24.9%
Retained Earnings	38.4%	33.8%	28.8%	23.1%	17.1%
Treasury Stock	0.0%	0.0%	—	—	—
Accumulated Other Comprehensive Income	-0.5%	-1.1%	-1.5%	-1.3%	0.5%
Total Stockholders Equity	55.5%	52.4%	50.1%	45.6%	42.5%
Total Liabilitiesand Equity	100.0%	100.0%	100.0%	100.0%	100.0%

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	45.5%	47.9%	51.4%	54.3%	50.4%
Expenses Cost of Revenue	14.2%	14.5%	16.0%	17.2%	15.6%
Expenses Research and Development	5.2%	5.8%	6.6%	6.7%	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%
Expenses Share Based Compensation	1.9%	2.1%	2.3%	2.1%	1.8%
Expenses Operating Expenses	10.6%	12.0%	—	—	—
Other Income Expense Gross Profit	31.3%	33.4%	35.5%	37.2%	34.7%
Other Income Expense Operating Income	20.8%	21.4%	21.5%	22.9%	20.9%
Other Income Expense Interest Income	0.4%	0.6%	0.7%	0.6%	0.6%
Other Income Expense Interest Expense	0.2%	0.6%	0.5%	0.6%	0.7%
Other Income Expense Other Income/expense	-0.8%	-0.3%	-0.1%	-0.0%	0.0%
Other Income Expense Income Before Tax	20.0%	21.0%	21.7%	22.9%	21.3%
Income Tax Income Tax Expense	3.5%	3.8%	4.1%	3.0%	2.9%
net Income net Income	16.5%	17.2%	17.6%	19.9%	18.4%
net Income Comprehensive Income	16.8%	17.4%	17.2%	18.2%	17.9%
Earnings Per Share Basic Eps	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%
Earnings Per Share Weighted Average Shares Basic	1.2%	1.5%	1.8%	2.1%	2.3%
Earnings Per Share Weighted Average Shares Diluted	1.2%	1.5%	1.8%	2.1%	2.3%

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	16.5%	17.2%	17.6%	19.9%	18.4%
Operating Activities Depreciation and Amortization	3.6%	3.0%	2.7%	3.5%	2.8%
Operating Activities Stock Based Compensation	1.9%	2.1%	—	—	—
Operating Activities Deferred Income Taxes	-1.1%	-0.9%	-1.5%	-1.6%	-0.0%
Operating Activities Changes In Operating Assets and Liabilities	2.6%	2.9%	1.6%	4.3%	3.5%
Operating Activities net Cash From Operating Activities	22.0%	23.1%	21.3%	24.4%	23.0%
Investing Activities Capital Expenditures	10.4%	8.7%	6.8%	6.5%	6.2%
Investing Activities Purchases of Investments	4.8%	3.5%	9.1%	7.3%	18.9%
Investing Activities Proceeds From Sale of Investments	2.6%	4.8%	8.1%	4.5%	15.5%
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%
Financing Activities Repayment of Debt	0.5%	5.7%	0.7%	2.5%	1.1%
Financing Activities Repurchase of Common Stock	3.0%	3.4%	5.4%	9.0%	8.2%
Financing Activities Dividends Paid	4.0%	4.4%	4.9%	5.1%	5.1%
Financing Activities Proceeds From Stock Issuance	0.3%	0.4%	0.5%	0.5%	0.5%
Financing Activities Tax Withholding On Stock Based Compensation	0.9%	1.0%	0.9%	1.3%	1.3%
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%
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%
Cash Reconciliation Cash At Beginning of Period	4.9%	3.6%	8.4%	3.8%	4.3%
Cash Reconciliation Cash At End of Period	4.9%	3.6%	8.4%	3.8%	4.3%

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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