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

Year-over-year change per cell; first column has no prior.

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	+65.1%	-47.2%	+149.1%	-2.1%	—
Short Term Investments	+12.4%	-25.2%	-15.7%	-21.8%	—
Accounts Receivable	+22.8%	+16.9%	+10.0%	+16.3%	—
Inventory	-24.7%	—	—	—	—
Prepaid Expenses	-1.1%	+19.3%	+28.9%	+26.4%	—
Other Current Assets	-1.1%	—	—	—	—
Total Current Assets	+19.7%	-13.3%	+8.6%	-8.0%	—
Property,Plant and Equipment	+51.2%	+41.8%	+28.6%	+24.6%	—
Operating Lease Assets	+30.9%	+32.2%	+9.1%	+18.6%	—
Goodwill	+0.2%	+75.6%	+0.5%	+35.8%	—
Intangible Assets	-18.1%	+194.7%	-17.1%	+44.8%	—
Long Term Investments	+5.5%	+47.8%	+43.4%	+15.2%	—
Other Noncurrent Assets	+11.3%	+19.1%	+39.7%	+45.3%	—
Total Assets	+20.9%	+24.3%	+12.9%	+9.3%	—
Liabilities
Accounts Payable	+26.0%	+21.6%	-4.8%	+25.3%	—
Accrued Liabilities	+30.4%	+30.1%	+12.8%	+12.0%	—
Deferred Revenue	+12.1%	—	—	—	—
Current Portion of Long Term Debt	+33.3%	-57.1%	+90.9%	-65.9%	—
Operating Lease Liabilities	+12.5%	—	—	—	—
Other Current Liabilities	+30.4%	—	—	—	—
Total Current Liabilities	+12.7%	+20.3%	+9.5%	+7.2%	—
Long Term Debt	-5.9%	+1.7%	-10.7%	-6.1%	—
Deferred Revenue Noncurrent	+4.2%	—	—	—	—
Operating Lease Liabilities Noncurrent	+12.5%	+21.8%	+10.8%	+19.3%	—
Deferred Tax Liabilities	-77.2%	+22.3%	+9.8%	-8.9%	—
Other Noncurrent Liabilities	+67.0%	+50.5%	+15.8%	+15.6%	—
Total Liabilities	+13.1%	+18.4%	+3.8%	+3.4%	—
Equity
Common Stock	+8.1%	+7.7%	+7.8%	+4.6%	—
Retained Earnings	+37.3%	+45.7%	+41.0%	+47.7%	—
Treasury Stock	—	—	—	—	—
Accumulated Other Comprehensive Income	+40.1%	+11.9%	-35.6%	-356.8%	—
Total Stockholders Equity	+27.9%	+30.2%	+23.8%	+17.3%	—
Total Liabilitiesand Equity	+20.9%	+24.3%	+12.9%	+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	+14.9%	+15.7%	+6.9%	+18.0%	—
Expenses Cost of Revenue	+18.5%	+12.5%	+5.1%	+19.9%	—
Expenses Research and Development	+10.1%	+8.5%	+10.9%	+18.3%	—
Expenses Selling,General and Administrative	-5.1%	—	—	—	—
Expenses Depreciation and Amortization	+44.7%	+38.2%	-12.7%	+35.5%	—
Expenses Share Based Compensation	+11.6%	+11.7%	+28.1%	+22.6%	—
Expenses Operating Expenses	+6.2%	—	—	—	—
Other Income Expense Gross Profit	+13.4%	+17.1%	+7.7%	+17.1%	—
Other Income Expense Operating Income	+17.4%	+23.6%	+6.2%	+19.3%	—
Other Income Expense Interest Income	-16.2%	+5.4%	+43.0%	-1.7%	—
Other Income Expense Interest Expense	-51.7%	+49.1%	-4.6%	-12.1%	—
Other Income Expense Other Income/expense	-258.2%	-491.5%	-596.9%	-132.7%	—
Other Income Expense Income Before Tax	+14.7%	+20.7%	+6.7%	+17.7%	—
Income Tax Income Tax Expense	+10.9%	+15.9%	+54.4%	+11.7%	—
net Income net Income	+15.5%	+21.8%	-0.5%	+18.7%	—
net Income Comprehensive Income	+17.1%	+25.7%	+6.7%	+10.6%	—
Earnings Per Share Basic Eps	+15.5%	+22.0%	+0.2%	+19.5%	—
Earnings Per Share Diluted Eps	+15.6%	+21.9%	+0.3%	+19.9%	—
Earnings Per Share Weighted Average Shares Basic	+0.0%	-0.2%	-0.7%	-0.7%	—
Earnings Per Share Weighted Average Shares Diluted	-0.1%	-0.0%	-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	+15.5%	+21.8%	-0.5%	+18.7%	—
Operating Activities Depreciation and Amortization	+44.7%	+38.2%	-12.7%	+35.5%	—
Operating Activities Stock Based Compensation	+11.6%	—	—	—	—
Operating Activities Deferred Income Taxes	-48.9%	+21.8%	-6.3%	-3701.3%	—
Operating Activities Changes In Operating Assets and Liabilities	+10.0%	+126.2%	-58.0%	+34.3%	—
Operating Activities net Cash From Operating Activities	+14.9%	+35.4%	-1.6%	+16.0%	—
Investing Activities Capital Expenditures	+45.1%	+58.2%	+17.7%	+15.8%	—
Investing Activities Purchases of Investments	+67.9%	-52.9%	+42.3%	-58.0%	—
Investing Activities Proceeds From Sale of Investments	-35.1%	-26.1%	+103.7%	-68.2%	—
Investing Activities Other Investing Activities	-278.5%	—	—	—	—
Investing Activities net Cash From Investing Activities	+25.1%	-327.6%	+25.2%	-9.9%	—
Financing Activities Repayment of Debt	-88.9%	+957.1%	-69.5%	+140.6%	—
Financing Activities Repurchase of Common Stock	+6.8%	-22.4%	-32.0%	+19.4%	—
Financing Activities Dividends Paid	+10.7%	+10.2%	+9.1%	+10.0%	—
Financing Activities Proceeds From Stock Issuance	+2.7%	+7.3%	+1.4%	+8.7%	—
Financing Activities Tax Withholding On Stock Based Compensation	+1.9%	+39.5%	-19.1%	+6.8%	—
Financing Activities Other Financing Activities	-75.0%	—	—	—	—
Financing Activities net Cash From Financing Activities	-36.9%	+14.1%	+25.4%	-21.4%	—
Cash Reconciliation Effect of Exchange Rate On Cash	+65.1%	—	—	—	—
Cash Reconciliation net Change In Cash	+172.8%	-178.9%	+7189.8%	-145.2%	—
Cash Reconciliation Cash At Beginning of Period	+65.1%	-47.2%	+149.1%	-2.1%	—
Cash Reconciliation Cash At End of Period	+65.1%	-47.2%	+149.1%	-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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