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 · 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	10.7%	7.5%	16.4%	7.0%	8.5%
Short Term Investments	22.8%	23.3%	36.1%	45.8%	69.1%
Accounts Receivable	24.8%	23.2%	23.0%	22.3%	22.6%
Inventory	0.3%	0.5%	—	—	—
Prepaid Expenses	9.1%	10.6%	10.3%	8.5%	8.0%
Other Current Assets	9.1%	10.6%	—	—	—
Total Current Assets	67.8%	65.2%	86.9%	85.6%	109.7%
Property,Plant and Equipment	72.8%	55.3%	45.1%	37.5%	35.5%
Operating Lease Assets	8.8%	7.7%	6.8%	6.6%	6.6%
Goodwill	42.4%	48.6%	32.0%	34.1%	29.6%
Intangible Assets	8.0%	11.3%	4.4%	5.7%	4.6%
Long Term Investments	5.5%	6.0%	4.7%	3.5%	3.6%
Other Noncurrent Assets	14.4%	14.9%	14.4%	11.0%	9.0%
Total Assets	219.7%	208.9%	194.4%	184.0%	198.6%
Liabilities
Accounts Payable	9.8%	9.0%	8.5%	9.6%	9.0%
Accrued Liabilities	8.9%	7.8%	7.0%	6.6%	6.9%
Deferred Revenue	22.9%	23.5%	—	—	—
Current Portion of Long Term Debt	1.1%	0.9%	2.5%	1.4%	4.8%
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%
Long Term Debt	14.3%	17.4%	19.8%	23.7%	29.8%
Deferred Revenue Noncurrent	1.0%	1.1%	—	—	—
Operating Lease Liabilities Noncurrent	6.2%	6.3%	6.0%	5.8%	5.7%
Deferred Tax Liabilities	1.0%	5.1%	4.8%	4.7%	6.1%
Other Noncurrent Liabilities	16.0%	11.0%	8.5%	7.8%	8.0%
Total Liabilities	97.8%	99.4%	97.1%	100.0%	114.1%
Equity
Common Stock	38.7%	41.2%	44.2%	43.8%	49.4%
Retained Earnings	84.4%	70.6%	56.1%	42.5%	33.9%
Treasury Stock	0.0%	0.0%	—	—	—
Accumulated Other Comprehensive Income	-1.2%	-2.3%	-3.0%	-2.4%	1.1%
Total Stockholders Equity	121.9%	109.5%	97.3%	84.0%	84.5%
Total Liabilitiesand Equity	219.7%	208.9%	194.4%	184.0%	198.6%

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	100.0%	100.0%	100.0%	100.0%	100.0%
Expenses Cost of Revenue	31.2%	30.2%	31.1%	31.6%	31.1%
Expenses Research and Development	11.5%	12.0%	12.8%	12.4%	12.3%
Expenses Selling,General and Administrative	2.6%	3.1%	—	—	—
Expenses Depreciation and Amortization	7.8%	6.2%	5.2%	6.4%	5.5%
Expenses Share Based Compensation	4.3%	4.4%	4.5%	3.8%	3.6%
Expenses Operating Expenses	23.2%	25.1%	—	—	—
Other Income Expense Gross Profit	68.8%	69.8%	68.9%	68.4%	68.9%
Other Income Expense Operating Income	45.6%	44.6%	41.8%	42.1%	41.6%
Other Income Expense Interest Income	0.9%	1.3%	1.4%	1.1%	1.3%
Other Income Expense Interest Expense	0.5%	1.2%	0.9%	1.0%	1.4%
Other Income Expense Other Income/expense	-1.7%	-0.5%	-0.1%	-0.0%	0.1%
Other Income Expense Income Before Tax	43.9%	44.0%	42.1%	42.2%	42.3%
Income Tax Income Tax Expense	7.7%	8.0%	8.0%	5.5%	5.8%
net Income net Income	36.1%	36.0%	34.1%	36.7%	36.5%
net Income Comprehensive Income	36.9%	36.3%	33.4%	33.4%	35.6%
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	2.6%	3.0%	3.5%	3.8%	4.5%
Earnings Per Share Weighted Average Shares Diluted	2.6%	3.0%	3.5%	3.8%	4.5%

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	36.1%	36.0%	34.1%	36.7%	36.5%
Operating Activities Depreciation and Amortization	7.8%	6.2%	5.2%	6.4%	5.5%
Operating Activities Stock Based Compensation	4.3%	4.4%	—	—	—
Operating Activities Deferred Income Taxes	-2.5%	-1.9%	-2.9%	-2.9%	-0.1%
Operating Activities Changes In Operating Assets and Liabilities	5.8%	6.0%	3.1%	7.9%	6.9%
Operating Activities net Cash From Operating Activities	48.3%	48.4%	41.3%	44.9%	45.7%
Investing Activities Capital Expenditures	22.9%	18.1%	13.3%	12.0%	12.3%
Investing Activities Purchases of Investments	10.6%	7.2%	17.8%	13.3%	37.4%
Investing Activities Proceeds From Sale of Investments	5.7%	10.1%	15.8%	8.3%	30.8%
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%
Financing Activities Repayment of Debt	1.1%	11.9%	1.3%	4.6%	2.2%
Financing Activities Repurchase of Common Stock	6.5%	7.0%	10.5%	16.5%	16.3%
Financing Activities Dividends Paid	8.8%	9.1%	9.5%	9.4%	10.0%
Financing Activities Proceeds From Stock Issuance	0.7%	0.8%	0.9%	0.9%	1.0%
Financing Activities Tax Withholding On Stock Based Compensation	1.9%	2.2%	1.8%	2.4%	2.6%
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%
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%
Cash Reconciliation Cash At Beginning of Period	10.7%	7.5%	16.4%	7.0%	8.5%
Cash Reconciliation Cash At End of Period	10.7%	7.5%	16.4%	7.0%	8.5%

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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