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

Running CAGR since the earliest displayed year.

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	+20.8%	+8.8%	+56.2%	-2.1%	—
Short Term Investments	-13.7%	-21.0%	-18.8%	-21.8%	—
Accounts Receivable	+16.4%	+14.4%	+13.1%	+16.3%	—
Inventory	—	—	—	—	—
Prepaid Expenses	+17.7%	+24.8%	+27.6%	+26.4%	—
Other Current Assets	—	—	—	—	—
Total Current Assets	+0.9%	-4.7%	-0.0%	-8.0%	—
Property,Plant and Equipment	+36.1%	+31.4%	+26.6%	+24.6%	—
Operating Lease Assets	+22.3%	+19.6%	+13.7%	+18.6%	—
Goodwill	+24.5%	+33.9%	+16.9%	+35.8%	—
Intangible Assets	+30.5%	+52.4%	+9.6%	+44.8%	—
Long Term Investments	+26.7%	+34.6%	+28.5%	+15.2%	—
Other Noncurrent Assets	+28.1%	+34.2%	+42.5%	+45.3%	—
Total Assets	+16.7%	+15.3%	+11.1%	+9.3%	—
Liabilities
Accounts Payable	+16.3%	+13.2%	+9.2%	+25.3%	—
Accrued Liabilities	+21.0%	+18.0%	+12.4%	+12.0%	—
Deferred Revenue	—	—	—	—	—
Current Portion of Long Term Debt	-21.9%	-34.7%	-19.4%	-65.9%	—
Operating Lease Liabilities	—	—	—	—	—
Other Current Liabilities	—	—	—	—	—
Total Current Liabilities	+12.3%	+12.2%	+8.4%	+7.2%	—
Long Term Debt	-5.4%	-5.2%	-8.4%	-6.1%	—
Deferred Revenue Noncurrent	—	—	—	—	—
Operating Lease Liabilities Noncurrent	+16.0%	+17.2%	+15.0%	+19.3%	—
Deferred Tax Liabilities	-27.4%	+6.9%	-0.0%	-8.9%	—
Other Noncurrent Liabilities	+35.4%	+26.3%	+15.7%	+15.6%	—
Total Liabilities	+9.5%	+8.3%	+3.6%	+3.4%	—
Equity
Common Stock	+7.0%	+6.7%	+6.2%	+4.6%	—
Retained Earnings	+42.9%	+44.8%	+44.3%	+47.7%	—
Treasury Stock	—	—	—	—	—
Accumulated Other Comprehensive Income	—	—	—	—	—
Total Stockholders Equity	+24.7%	+23.7%	+20.5%	+17.3%	—
Total Liabilitiesand Equity	+16.7%	+15.3%	+11.1%	+9.3%	—

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	+13.8%	+13.4%	+12.3%	+18.0%	—
Expenses Cost of Revenue	+13.9%	+12.4%	+12.3%	+19.9%	—
Expenses Research and Development	+11.9%	+12.5%	+14.6%	+18.3%	—
Expenses Selling,General and Administrative	—	—	—	—	—
Expenses Depreciation and Amortization	+24.0%	+17.8%	+8.8%	+35.5%	—
Expenses Share Based Compensation	+18.3%	+20.6%	+25.3%	+22.6%	—
Expenses Operating Expenses	—	—	—	—	—
Other Income Expense Gross Profit	+13.7%	+13.9%	+12.3%	+17.1%	—
Other Income Expense Operating Income	+16.4%	+16.1%	+12.5%	+19.3%	—
Other Income Expense Interest Income	+5.6%	+14.0%	+18.5%	-1.7%	—
Other Income Expense Interest Expense	-11.8%	+7.8%	-8.4%	-12.1%	—
Other Income Expense Other Income/expense	—	—	—	—	—
Other Income Expense Income Before Tax	+14.8%	+14.9%	+12.1%	+17.7%	—
Income Tax Income Tax Expense	+22.0%	+26.0%	+31.3%	+11.7%	—
net Income net Income	+13.5%	+12.9%	+8.7%	+18.7%	—
net Income Comprehensive Income	+14.8%	+14.1%	+8.6%	+10.6%	—
Earnings Per Share Basic Eps	+14.0%	+13.5%	+9.4%	+19.5%	—
Earnings Per Share Diluted Eps	+14.1%	+13.6%	+9.7%	+19.9%	—
Earnings Per Share Weighted Average Shares Basic	-0.4%	-0.5%	-0.7%	-0.7%	—
Earnings Per Share Weighted Average Shares Diluted	-0.5%	-0.6%	-0.9%	-0.9%	—

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	+13.5%	+12.9%	+8.7%	+18.7%	—
Operating Activities Depreciation and Amortization	+24.0%	+17.8%	+8.8%	+35.5%	—
Operating Activities Stock Based Compensation	—	—	—	—	—
Operating Activities Deferred Income Taxes	—	—	—	—	—
Operating Activities Changes In Operating Assets and Liabilities	+8.8%	+8.5%	-24.9%	+34.3%	—
Operating Activities net Cash From Operating Activities	+15.4%	+15.6%	+6.8%	+16.0%	—
Investing Activities Capital Expenditures	+33.0%	+29.2%	+16.7%	+15.8%	—
Investing Activities Purchases of Investments	-17.1%	-34.4%	-22.6%	-58.0%	—
Investing Activities Proceeds From Sale of Investments	-25.4%	-21.8%	-19.6%	-68.2%	—
Investing Activities Other Investing Activities	—	—	—	—	—
Investing Activities net Cash From Investing Activities	—	—	—	—	—
Financing Activities Repayment of Debt	-3.8%	+97.9%	-14.4%	+140.6%	—
Financing Activities Repurchase of Common Stock	-9.4%	-14.3%	-9.9%	+19.4%	—
Financing Activities Dividends Paid	+10.0%	+9.7%	+9.5%	+10.0%	—
Financing Activities Proceeds From Stock Issuance	+5.0%	+5.7%	+5.0%	+8.7%	—
Financing Activities Tax Withholding On Stock Based Compensation	+5.3%	+6.4%	-7.1%	+6.8%	—
Financing Activities Other Financing Activities	—	—	—	—	—
Financing Activities net Cash From Financing Activities	—	—	—	—	—
Cash Reconciliation Effect of Exchange Rate On Cash	—	—	—	—	—
Cash Reconciliation net Change In Cash	+107.1%	—	+466.2%	—	—
Cash Reconciliation Cash At Beginning of Period	+20.8%	+8.8%	+56.2%	-2.1%	—
Cash Reconciliation Cash At End of Period	+20.8%	+8.8%	+56.2%	-2.1%	—

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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