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 revenue.

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	10.7%	7.5%	16.4%	7.0%	8.5%	9.5%	9.0%	10.8%	7.9%	7.1%
Short Term Investments	22.8%	23.3%	36.1%	45.8%	69.1%	86.0%	97.3%	110.4%	132.4%	119.3%
Accounts Receivable	24.8%	23.2%	23.0%	22.3%	22.6%	22.4%	23.5%	24.0%	23.2%	20.1%
Inventory	0.3%	0.5%	—	—	—	—	—	—	—	—
Prepaid Expenses	9.1%	10.6%	10.3%	8.5%	8.0%	8.0%	8.1%	6.1%	5.3%	6.5%
Other Current Assets	9.1%	10.6%	—	—	—	—	—	—	—	—
Total Current Assets	67.8%	65.2%	86.9%	85.6%	109.7%	127.2%	139.5%	153.7%	168.5%	153.2%
Property,Plant and Equipment	72.8%	55.3%	45.1%	37.5%	35.5%	30.9%	29.0%	26.7%	24.6%	20.1%
Operating Lease Assets	8.8%	7.7%	6.8%	6.6%	6.6%	6.1%	5.9%	6.1%	6.8%	0.0%
Goodwill	42.4%	48.6%	32.0%	34.1%	29.6%	30.3%	33.4%	32.3%	36.4%	19.6%
Intangible Assets	8.0%	11.3%	4.4%	5.7%	4.6%	4.9%	6.2%	7.3%	10.5%	4.1%
Long Term Investments	5.5%	6.0%	4.7%	3.5%	3.6%	2.1%	2.1%	1.7%	6.2%	11.4%
Other Noncurrent Assets	14.4%	14.9%	14.4%	11.0%	9.0%	9.2%	11.7%	6.7%	6.3%	3.7%
Total Assets	219.7%	208.9%	194.4%	184.0%	198.6%	210.7%	227.7%	234.5%	259.2%	212.2%
Liabilities
Accounts Payable	9.8%	9.0%	8.5%	9.6%	9.0%	8.8%	7.5%	7.8%	7.7%	7.6%
Accrued Liabilities	8.9%	7.8%	7.0%	6.6%	6.9%	7.0%	7.4%	7.9%	8.0%	6.5%
Deferred Revenue	22.9%	23.5%	—	—	—	—	—	—	—	—
Current Portion of Long Term Debt	1.1%	0.9%	2.5%	1.4%	4.8%	2.6%	4.4%	3.6%	1.1%	0.0%
Operating Lease Liabilities	6.2%	6.3%	—	—	—	—	—	—	—	—
Other Current Liabilities	8.9%	7.8%	—	—	—	—	—	—	—	—
Total Current Liabilities	50.1%	51.1%	49.1%	48.0%	52.7%	50.6%	55.2%	53.0%	57.7%	65.1%
Long Term Debt	14.3%	17.4%	19.8%	23.7%	29.8%	41.7%	53.0%	65.5%	78.8%	44.5%
Deferred Revenue Noncurrent	1.0%	1.1%	—	—	—	—	—	—	—	—
Operating Lease Liabilities Noncurrent	6.2%	6.3%	6.0%	5.8%	5.7%	5.4%	4.9%	5.0%	5.6%	—
Deferred Tax Liabilities	1.0%	5.1%	4.8%	4.7%	6.1%	6.1%	4.1%	3.2%	10.3%	4.8%
Other Noncurrent Liabilities	16.0%	11.0%	8.5%	7.8%	8.0%	7.4%	6.0%	4.7%	3.7%	15.0%
Total Liabilities	97.8%	99.4%	97.1%	100.0%	114.1%	128.0%	146.4%	159.6%	168.4%	133.3%
Equity
Common Stock	38.7%	41.2%	44.2%	43.8%	49.4%	56.3%	62.4%	64.5%	71.8%	74.8%
Retained Earnings	84.4%	70.6%	56.1%	42.5%	33.9%	24.2%	19.2%	12.4%	18.4%	2.5%
Treasury Stock	0.0%	0.0%	—	—	—	—	—	7.8%	10.6%	16.2%
Accumulated Other Comprehensive Income	-1.2%	-2.3%	-3.0%	-2.4%	1.1%	2.2%	-0.3%	-2.0%	0.6%	1.7%
Total Stockholders Equity	121.9%	109.5%	97.3%	84.0%	84.5%	82.7%	81.3%	75.0%	90.8%	91.2%
Total Liabilitiesand Equity	219.7%	208.9%	194.4%	184.0%	198.6%	210.7%	227.7%	234.5%	259.2%	224.4%

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	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%
Expenses Cost of Revenue	31.2%	30.2%	31.1%	31.6%	31.1%	32.2%	34.1%	34.8%	35.5%	36.0%
Expenses Research and Development	11.5%	12.0%	12.8%	12.4%	12.3%	13.5%	13.4%	13.3%	13.5%	13.2%
Expenses Selling,General and Administrative	2.6%	3.1%	—	—	—	—	—	—	—	—
Expenses Depreciation and Amortization	7.8%	6.2%	5.2%	6.4%	5.5%	7.5%	7.7%	7.0%	6.3%	5.4%
Expenses Share Based Compensation	4.3%	4.4%	4.5%	3.8%	3.6%	3.7%	3.7%	3.6%	3.4%	2.9%
Expenses Operating Expenses	23.2%	25.1%	—	—	—	—	—	—	—	—
Other Income Expense Gross Profit	68.8%	69.8%	68.9%	68.4%	68.9%	67.8%	65.9%	65.2%	64.5%	64.0%
Other Income Expense Operating Income	45.6%	44.6%	41.8%	42.1%	41.6%	37.0%	34.1%	31.8%	30.1%	28.6%
Other Income Expense Interest Income	0.9%	1.3%	1.4%	1.1%	1.3%	1.9%	2.2%	2.0%	1.4%	1.0%
Other Income Expense Interest Expense	0.5%	1.2%	0.9%	1.0%	1.4%	1.8%	2.1%	2.5%	2.3%	1.4%
Other Income Expense Other Income/expense	-1.7%	-0.5%	-0.1%	-0.0%	0.1%	-0.0%	-0.0%	-0.1%	-0.3%	-0.2%
Other Income Expense Income Before Tax	43.9%	44.0%	42.1%	42.2%	42.3%	37.1%	34.7%	33.1%	31.0%	28.1%
Income Tax Income Tax Expense	7.7%	8.0%	8.0%	5.5%	5.8%	6.1%	3.5%	18.0%	4.6%	5.6%
net Income net Income	36.1%	36.0%	34.1%	36.7%	36.5%	31.0%	31.2%	15.0%	26.4%	22.5%
net Income Comprehensive Income	36.9%	36.3%	33.4%	33.4%	35.6%	33.4%	32.7%	12.4%	25.2%	21.7%
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	2.6%	3.0%	3.5%	3.8%	4.5%	5.3%	6.1%	7.0%	8.0%	8.7%
Earnings Per Share Weighted Average Shares Diluted	2.6%	3.0%	3.5%	3.8%	4.5%	5.4%	6.2%	7.1%	8.1%	8.8%

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	36.1%	36.0%	34.1%	36.7%	36.5%	31.0%	31.2%	15.0%	26.4%	22.5%
Operating Activities Depreciation and Amortization	7.8%	6.2%	5.2%	6.4%	5.5%	7.5%	7.7%	7.0%	6.3%	5.4%
Operating Activities Stock Based Compensation	4.3%	4.4%	—	—	—	—	—	—	—	—
Operating Activities Deferred Income Taxes	-2.5%	-1.9%	-2.9%	-2.9%	-0.1%	0.0%	-5.1%	-4.7%	-0.9%	2.7%
Operating Activities Changes In Operating Assets and Liabilities	5.8%	6.0%	3.1%	7.9%	6.9%	2.9%	8.3%	26.4%	7.2%	2.0%
Operating Activities net Cash From Operating Activities	48.3%	48.4%	41.3%	44.9%	45.7%	42.4%	41.5%	39.8%	40.9%	36.6%
Investing Activities Capital Expenditures	22.9%	18.1%	13.3%	12.0%	12.3%	10.8%	11.1%	10.5%	8.4%	9.2%
Investing Activities Purchases of Investments	10.6%	7.2%	17.8%	13.3%	37.4%	54.0%	45.8%	124.5%	183.2%	142.4%
Investing Activities Proceeds From Sale of Investments	5.7%	10.1%	15.8%	8.3%	30.8%	46.5%	15.9%	23.9%	29.0%	24.2%
Investing Activities Other Investing Activities	-0.8%	0.5%	—	—	—	—	—	—	—	—
Investing Activities net Cash From Investing Activities	-25.8%	-39.6%	-10.7%	-15.3%	-16.4%	-8.5%	-12.5%	-5.5%	-48.4%	-26.3%
Financing Activities Repayment of Debt	1.1%	11.9%	1.3%	4.6%	2.2%	3.9%	3.2%	9.1%	8.2%	3.1%
Financing Activities Repurchase of Common Stock	6.5%	7.0%	10.5%	16.5%	16.3%	16.1%	15.5%	9.7%	12.2%	17.5%
Financing Activities Dividends Paid	8.8%	9.1%	9.5%	9.4%	10.0%	10.8%	11.2%	11.7%	3.1%	3.1%
Financing Activities Proceeds From Stock Issuance	0.7%	0.8%	0.9%	0.9%	1.0%	0.9%	0.9%	0.9%	0.8%	0.7%
Financing Activities Tax Withholding On Stock Based Compensation	1.9%	2.2%	1.8%	2.4%	2.6%	2.3%	2.1%	1.9%	1.6%	—
Financing Activities Other Financing Activities	-0.8%	-0.5%	—	—	—	—	—	—	—	—
Financing Activities net Cash From Financing Activities	-18.4%	-15.4%	-20.7%	-29.7%	-28.8%	-32.2%	-29.3%	-30.4%	8.7%	-9.2%
Cash Reconciliation Effect of Exchange Rate On Cash	10.7%	7.5%	—	—	—	—	—	—	—	—
Cash Reconciliation net Change In Cash	4.2%	-6.7%	9.8%	-0.1%	0.4%	1.6%	-0.5%	3.9%	1.2%	1.0%
Cash Reconciliation Cash At Beginning of Period	10.7%	7.5%	16.4%	7.0%	8.5%	9.5%	9.0%	10.8%	7.9%	7.1%
Cash Reconciliation Cash At End of Period	10.7%	7.5%	16.4%	7.0%	8.5%	9.5%	9.0%	10.8%	7.9%	7.1%

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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