Microsoft (MSFT) Financials

$522.04 +1.20 (+0.23%)

Closing price 08/8/2025 04:00 PM Eastern

Extended Trading

$522.80 +0.76 (+0.15%)

As of 08/8/2025 08:00 PM Eastern

Annual Income Statements for Microsoft

This table shows Microsoft's income and expenses over time, based on annual financial data. All values are USD millions unless otherwise specified.

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Period end date	6/30/2015	6/30/2016	6/30/2017	6/30/2018	6/30/2019	6/30/2020	6/30/2021	6/30/2022	6/30/2023	6/30/2024	6/30/2025
Net Income / (Loss) Attributable to Common Shareholders	12,193	20,539	25,489	16,571	39,240	44,281	61,271	72,738	72,361	88,136	101,832
Consolidated Net Income / (Loss)	12,193	20,539	25,489	16,571	39,240	44,281	61,271	72,738	72,361	88,136	101,832
Net Income / (Loss) Continuing Operations	12,193	20,539	25,489	16,571	39,240	44,281	61,271	72,738	72,361	88,136	101,832
Total Pre-Tax Income	18,507	25,639	29,901	36,474	43,688	53,036	71,102	83,716	89,311	107,787	123,627
Total Operating Income	18,161	26,078	29,025	35,058	42,959	52,959	69,916	83,383	88,523	109,433	128,528
Total Gross Profit	60,542	58,374	62,310	72,007	82,933	96,937	115,856	135,620	146,052	171,008	193,893
Total Revenue	93,580	91,154	96,571	110,360	125,843	143,015	168,088	198,270	211,915	245,122	281,724
Operating Revenue	93,580	91,154	96,571	110,360	125,843	143,015	168,088	198,270	211,915	245,122	281,724
Total Cost of Revenue	33,038	32,780	34,261	38,353	42,910	46,078	52,232	62,650	65,863	74,114	87,831
Operating Cost of Revenue	33,038	32,780	34,261	38,353	42,910	46,078	52,232	62,650	65,863	74,114	87,831
Total Operating Expenses	42,381	32,296	33,285	36,949	39,974	43,978	45,940	52,237	57,529	61,575	65,365
Selling, General & Admin Expense	4,611	4,563	4,481	4,754	4,885	5,111	5,107	5,900	7,575	7,609	7,223
Marketing Expense	15,713	14,635	15,461	17,469	18,213	19,598	20,117	21,825	22,759	24,456	25,654
Research & Development Expense	12,046	11,988	13,037	14,726	16,876	19,269	20,716	24,512	27,195	29,510	32,488
Total Other Income / (Expense), net	346	-439	876	1,416	729	77	1,186	333	788	-1,646	-4,901
Other Income / (Expense), net	346	-439	876	1,416	729	77	1,186	333	788	-1,646	-4,901
Income Tax Expense	6,314	5,100	4,412	19,903	4,448	8,755	9,831	10,978	16,950	19,651	21,795
Basic Earnings per Share	$1.49	$2.59	$3.29	$2.15	$5.11	$5.82	$8.12	$9.70	$9.72	$11.86	$13.70
Weighted Average Basic Shares Outstanding	8.18B	7.93B	7.75B	7.70B	7.67B	7.61B	7.55B	7.50B	7.45B	7.43B	7.43B
Diluted Earnings per Share	$1.48	$2.56	$3.25	$2.13	$5.06	$5.76	$8.05	$9.65	$9.68	$11.80	$13.64
Weighted Average Diluted Shares Outstanding	8.25B	8.01B	7.83B	7.79B	7.75B	7.68B	7.61B	7.54B	7.47B	7.47B	7.47B
Weighted Average Basic & Diluted Shares Outstanding	8.18B	7.92B	7.75B	7.71B	7.68B	7.57B	7.51B	7.46B	7.43B	7.43B	7.43B
Cash Dividends to Common per Share	$1.24	$1.44	$1.56	$1.68	$1.84	$2.04	$2.24	$2.48	$2.72	$3.00	$3.32

This table shows Microsoft's income and expenses over time, based on quarterly financial data. All values are USD millions unless otherwise specified.

Metric	Q2 2023	Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025
Period end date	12/31/2022	3/31/2023	6/30/2023	9/30/2023	12/31/2023	3/31/2024	6/30/2024	9/30/2024	12/31/2024	3/31/2025	6/30/2025
Net Income / (Loss) Attributable to Common Shareholders	16,425	18,299	20,081	22,291	21,870	21,939	22,036	24,667	24,108	25,824	27,233
Consolidated Net Income / (Loss)	16,425	18,299	20,081	22,291	21,870	21,939	22,036	24,667	24,108	25,824	27,233
Net Income / (Loss) Continuing Operations	16,425	18,299	20,081	22,291	21,870	21,939	22,036	24,667	24,108	25,824	27,233
Total Pre-Tax Income	20,339	22,673	24,727	27,284	26,526	26,727	27,250	30,269	29,365	31,377	32,616
Total Operating Income	20,399	22,352	24,254	26,895	27,032	27,581	27,925	30,552	31,653	32,000	34,323
Total Gross Profit	35,259	36,729	39,394	40,215	42,397	43,353	45,043	45,486	47,833	48,147	52,427
Total Revenue	52,747	52,857	56,189	56,517	62,020	61,858	64,727	65,585	69,632	70,066	76,441
Operating Revenue	52,747	52,857	56,189	56,517	62,020	61,858	64,727	65,585	69,632	70,066	76,441
Total Cost of Revenue	17,488	16,128	16,795	16,302	19,623	18,505	19,684	20,099	21,799	21,919	24,014
Operating Cost of Revenue	17,488	16,128	16,795	16,302	19,623	18,505	19,684	20,099	21,799	21,919	24,014
Total Operating Expenses	14,860	14,377	15,140	13,320	15,365	15,772	17,118	14,934	16,180	16,147	18,104
Selling, General & Admin Expense	2,337	1,643	2,197	1,474	1,977	1,912	2,246	1,673	1,823	1,737	1,990
Marketing Expense	5,679	5,750	6,204	5,187	6,246	6,207	6,816	5,717	6,440	6,212	7,285
Research & Development Expense	6,844	6,984	6,739	6,659	7,142	7,653	8,056	7,544	7,917	8,198	8,829
Total Other Income / (Expense), net	-60	321	473	389	-506	-854	-675	-283	-2,288	-623	-1,707
Other Income / (Expense), net	-60	321	473	389	-506	-854	-675	-283	-2,288	-623	-1,707
Income Tax Expense	3,914	4,374	4,646	4,993	4,656	4,788	5,214	5,602	5,257	5,553	5,383
Basic Earnings per Share	$2.20	$2.46	$2.71	$3.00	$2.94	$2.95	$2.97	$3.32	$3.24	$3.47	$3.67
Weighted Average Basic Shares Outstanding	7.45B	7.44B	7.45B	7.43B	7.43B	7.43B	7.43B	7.43B	7.44B	7.43B	7.43B
Diluted Earnings per Share	$2.20	$2.45	$2.68	$2.99	$2.93	$2.94	$2.94	$3.30	$3.23	$3.46	$3.65
Weighted Average Diluted Shares Outstanding	7.47B	7.46B	7.47B	7.46B	7.47B	7.47B	7.47B	7.47B	7.47B	7.46B	7.47B
Weighted Average Basic & Diluted Shares Outstanding	7.44B	7.44B	7.43B	7.43B	7.43B	7.43B	7.43B	7.43B	7.43B	7.43B	7.43B

This table details how cash moves in and out of Microsoft's business through operations, investing, and financing, using annual figures. All values are USD millions unless otherwise specified.

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Period end date	6/30/2015	6/30/2016	6/30/2017	6/30/2018	6/30/2019	6/30/2020	6/30/2021	6/30/2022	6/30/2023	6/30/2024	6/30/2025
Net Change in Cash & Equivalents	-3,074	915	1,153	4,283	-590	2,220	648	-293	20,773	-16,389	11,927
Net Cash From Operating Activities	29,668	33,325	39,507	43,884	52,185	60,675	76,740	89,035	87,582	118,548	136,162
Net Cash From Continuing Operating Activities	29,668	33,325	39,507	43,884	52,185	60,675	76,740	89,035	87,582	118,548	136,162
Net Income / (Loss) Continuing Operations	12,193	20,539	25,489	16,571	39,240	44,281	61,271	72,738	72,361	88,136	101,832
Consolidated Net Income / (Loss)	12,193	20,539	25,489	16,571	39,240	44,281	61,271	72,738	72,361	88,136	101,832
Depreciation Expense	5,957	6,622	8,778	10,261	11,682	12,796	11,686	14,460	13,861	22,287	34,153
Non-Cash Adjustments To Reconcile Net Income	10,005	5,554	364	-3,415	-2,603	5,081	4,719	1,391	9,807	6,301	12,583
Changes in Operating Assets and Liabilities, net	1,513	610	4,876	20,467	3,866	-1,483	-936	446	-8,447	1,824	-12,406
Net Cash From Investing Activities	-23,001	-23,950	-46,781	-6,061	-15,773	-12,223	-27,577	-30,311	-22,680	-96,970	-72,599
Net Cash From Continuing Investing Activities	-23,001	-23,950	-46,781	-6,061	-15,773	-12,223	-27,577	-30,311	-22,680	-96,970	-72,599
Purchase of Property, Plant & Equipment	-5,944	-8,343	-8,129	-11,632	-13,925	-15,441	-20,622	-23,886	-28,107	-44,477	-64,551
Acquisitions	-3,723	-1,393	-25,944	-888	-2,388	-2,521	-8,909	-22,038	-1,670	-69,132	-5,978
Purchase of Investments	-99,195	-129,555	-177,102	-137,380	-57,697	-77,190	-62,924	-26,456	-37,651	-17,732	-29,775
Sale and/or Maturity of Investments	85,861	115,341	164,394	143,937	58,237	84,170	65,800	44,894	47,864	35,669	25,388
Other Investing Activities, net	-	-	-	-98	0.00	-1,241	-922	-2,825	-3,116	-1,298	2,317
Net Cash From Financing Activities	-9,668	-8,393	8,408	-33,590	-36,887	-46,031	-48,486	-58,876	-43,935	-37,757	-51,699
Net Cash From Continuing Financing Activities	-9,668	-8,393	8,408	-33,590	-36,887	-46,031	-48,486	-58,876	-43,935	-37,757	-51,699
Repayment of Debt	-1,138	4,030	-13,075	-18,355	-4,675	-9,269	-6,273	-9,886	-3,756	-25,129	-5,507
Repurchase of Common Equity	-14,443	-15,969	-11,788	-10,721	-19,543	-22,968	-27,385	-32,696	-22,245	-17,254	-18,420
Payment of Dividends	-9,882	-11,006	-11,845	-12,699	-13,811	-15,137	-16,521	-18,135	-19,800	-21,771	-24,082
Issuance of Debt	15,161	13,884	44,344	7,183	-	-	-	0.00	0.00	24,395	-5,746
Issuance of Common Equity	634	668	772	1,002	1,142	1,343	1,693	1,841	1,866	2,002	2,056
Other Net Changes in Cash	-	-	-	-	-	-	-	-	-194	-	63

This table details how cash moves in and out of Microsoft's business through operations, investing, and financing, using quarterly figures. All values are USD millions unless otherwise specified.

Metric	Q2 2023	Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025
Period end date	12/31/2022	3/31/2023	6/30/2023	9/30/2023	12/31/2023	3/31/2024	6/30/2024	9/30/2024	12/31/2024	3/31/2025	6/30/2025
Net Change in Cash & Equivalents	-7,238	10,916	8,142	45,748	-63,147	2,329	-1,319	2,525	-3,358	11,346	1,414
Net Cash From Operating Activities	11,173	24,441	28,770	30,583	18,853	31,917	37,195	34,180	22,291	37,044	42,647
Net Cash From Continuing Operating Activities	11,173	24,441	28,770	30,583	18,853	31,917	37,195	34,180	22,291	37,044	42,647
Net Income / (Loss) Continuing Operations	16,425	18,299	20,081	22,291	21,870	21,939	22,036	24,667	24,108	25,824	27,233
Consolidated Net Income / (Loss)	16,425	18,299	20,081	22,291	21,870	21,939	22,036	24,667	24,108	25,824	27,233
Depreciation Expense	3,648	3,549	3,874	3,921	5,959	6,027	6,380	7,383	6,827	8,740	11,203
Non-Cash Adjustments To Reconcile Net Income	1,447	750	572	1,953	1,324	1,429	1,595	1,274	2,907	438	7,964
Changes in Operating Assets and Liabilities, net	-10,347	1,843	4,243	2,418	-10,300	2,522	7,184	856	-11,551	2,042	-3,753
Net Cash From Investing Activities	-7,150	-3,264	-9,134	503	-71,925	-10,700	-14,848	-15,201	-14,112	-12,714	-30,572
Net Cash From Continuing Investing Activities	-7,150	-3,264	-9,134	503	-71,925	-10,700	-14,848	-15,201	-14,112	-12,714	-30,572
Purchase of Property, Plant & Equipment	-6,274	-6,607	-8,943	-9,917	-9,735	-10,952	-13,873	-14,923	-15,804	-16,745	-17,079
Acquisitions	-679	-301	-341	-1,186	-65,029	-1,575	-1,342	-1,849	-1,405	-981	-1,743
Purchase of Investments	-11,599	-9,063	-11,976	-8,460	-4,258	-2,183	-2,831	-1,620	-2,050	-4,474	-21,631
Sale and/or Maturity of Investments	11,703	14,393	12,395	21,048	5,750	5,291	3,580	4,104	5,163	8,882	7,239
Other Investing Activities, net	-301	-1,686	-269	-982	1,347	-1,281	-382	-913	-16	604	2,642
Net Cash From Financing Activities	-11,349	-10,290	-11,413	14,761	-10,147	-18,808	-23,563	-16,576	-11,243	-13,036	-10,844
Net Cash From Continuing Financing Activities	-11,349	-10,290	-11,413	14,761	-10,147	-18,808	-23,563	-16,576	-11,243	-13,036	-10,844
Repayment of Debt	-1,067	-258	-1,167	16,885	-11,607	-15,897	-14,510	-7,601	-343	-2,632	5,069
Repurchase of Common Equity	-5,459	-5,509	-5,704	-4,831	-4,000	-4,213	-4,210	-4,107	-4,986	-4,781	-4,546
Payment of Dividends	-5,066	-5,059	-5,054	-5,051	-5,574	-5,572	-5,574	-5,574	-6,170	-6,169	-6,169
Issuance of Debt	-	-	-	7,073	10,773	6,352	197	0.00	-	-	-5,746
Issuance of Common Equity	243	536	512	685	261	522	534	706	256	546	548

This table presents Microsoft's assets and liabilities at the end of each period, using annual balance sheet data. All values are USD millions unless otherwise specified.

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Period end date	6/30/2015	6/30/2016	6/30/2017	6/30/2018	6/30/2019	6/30/2020	6/30/2021	6/30/2022	6/30/2023	6/30/2024	6/30/2025
Total Assets	174,472	193,468	250,312	258,848	286,556	301,311	333,779	364,840	411,976	512,163	619,003
Total Current Assets	122,797	139,660	162,696	169,662	175,552	181,915	184,406	169,684	184,257	159,734	191,131
Cash & Equivalents	5,595	6,510	7,663	11,946	11,356	13,576	14,224	13,931	34,704	18,315	30,242
Short-Term Investments	90,931	106,730	125,318	121,822	122,463	122,951	116,110	90,826	76,558	57,228	64,323
Accounts Receivable	17,908	18,277	22,431	26,481	29,524	32,011	38,043	44,261	48,688	56,924	69,905
Inventories, net	2,902	2,251	2,181	2,662	2,063	1,895	2,636	3,742	2,500	1,246	938
Other Current Assets	5,461	5,892	5,103	6,751	10,146	11,482	13,393	16,924	21,807	26,021	25,723
Plant, Property, & Equipment, net	14,731	18,356	23,734	29,460	36,477	44,151	59,715	74,398	95,641	135,591	204,966
Total Noncurrent Assets	36,944	35,452	63,882	59,726	74,527	75,245	89,658	120,758	132,078	216,838	222,906
Long-Term Investments	12,053	10,431	6,023	1,862	2,649	2,965	5,984	6,891	9,879	14,600	15,405
Goodwill	16,939	17,872	35,122	35,683	42,026	43,351	49,711	67,524	67,886	119,220	119,509
Intangible Assets	4,835	3,733	10,106	8,053	7,750	7,038	7,800	11,298	9,366	27,597	22,604
Other Noncurrent Operating Assets	3,117	3,416	12,631	14,128	22,102	21,891	26,163	35,045	44,947	55,421	65,388
Total Liabilities & Shareholders' Equity	174,472	193,468	250,312	258,848	286,556	301,311	333,779	364,840	411,976	512,163	619,003
Total Liabilities	94,389	121,471	162,601	176,130	184,226	183,007	191,791	198,298	205,753	243,686	275,524
Total Current Liabilities	49,647	59,357	55,745	58,488	69,420	72,310	88,657	95,082	104,149	125,286	141,218
Short-Term Debt	7,484	12,904	10,121	3,998	5,516	3,749	8,072	2,749	5,247	8,942	2,999
Accounts Payable	6,591	6,898	7,390	8,617	9,382	12,530	15,163	19,000	18,095	21,996	27,724
Current Deferred Revenue	23,223	27,468	24,013	28,905	32,676	36,000	41,525	45,538	50,901	57,582	64,555
Current Deferred & Payable Income Tax Liabilities	606	580	718	2,121	5,665	2,130	2,174	4,067	4,152	5,017	7,211
Current Employee Benefit Liabilities	5,096	5,264	5,819	6,103	6,830	7,874	10,057	10,661	11,009	12,564	13,709
Other Current Liabilities	6,555	5,949	7,684	8,744	9,351	10,027	11,666	13,067	14,745	19,185	25,020
Total Noncurrent Liabilities	44,742	62,114	106,856	117,642	114,806	110,697	103,134	103,216	101,604	118,400	134,306
Long-Term Debt	27,808	40,557	76,073	72,242	66,662	59,578	50,074	47,032	41,990	42,688	40,152
Noncurrent Deferred Revenue	2,095	6,441	16,128	34,080	34,142	32,612	29,806	28,939	28,472	30,533	28,696
Noncurrent Deferred & Payable Income Tax Liabilities	1,295	1,476	5,734	541	233	204	198	230	433	2,618	2,835
Other Noncurrent Operating Liabilities	13,544	13,640	8,921	10,779	13,769	18,303	23,056	27,015	30,709	42,561	62,623
Commitments & Contingencies	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total Equity & Noncontrolling Interests	80,083	71,997	87,711	82,718	102,330	118,304	141,988	166,542	206,223	268,477	343,479
Total Preferred & Common Equity	80,083	71,997	87,711	82,718	102,330	118,304	141,988	166,542	206,223	268,477	343,479
Total Common Equity	80,083	71,997	87,711	82,718	102,330	118,304	141,988	166,542	206,223	268,477	343,479
Common Stock	68,465	68,178	69,315	71,223	78,520	80,552	83,111	86,939	93,718	100,923	109,095
Retained Earnings	9,096	2,282	17,769	13,682	24,150	34,566	57,055	84,281	118,848	173,144	237,731
Accumulated Other Comprehensive Income / (Loss)	2,522	1,537	627	-2,187	-340	3,186	1,822	-4,678	-6,343	-5,590	-3,347

This table presents Microsoft's assets and liabilities at the end of each period, using quarterly balance sheet data. All values are USD millions unless otherwise specified.

Metric	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025
Period end date	9/30/2022	12/31/2022	3/31/2023	6/30/2023	9/30/2023	12/31/2023	3/31/2024	6/30/2024	9/30/2024	12/31/2024	3/31/2025
Total Assets	359,784	364,552	380,088	411,976	445,785	470,558	484,275	512,163	523,013	533,898	562,624
Total Current Assets	160,812	157,823	163,889	184,257	207,586	147,393	147,180	159,734	149,926	147,080	156,644
Cash & Equivalents	22,884	15,646	26,562	34,704	80,452	17,305	19,634	18,315	20,840	17,482	28,828
Short-Term Investments	84,378	83,862	77,865	76,558	63,499	63,712	60,387	57,228	57,588	54,073	50,790
Accounts Receivable	31,279	35,833	37,420	48,688	36,953	42,831	44,029	56,924	44,148	48,188	51,700
Inventories, net	4,268	2,980	2,877	2,500	3,000	1,615	1,304	1,246	1,626	909	848
Other Current Assets	18,003	19,502	19,165	21,807	23,682	21,930	21,826	26,021	25,724	26,428	24,478
Plant, Property, & Equipment, net	77,037	82,755	88,132	95,641	102,502	112,308	121,375	135,591	152,863	166,902	183,939
Total Noncurrent Assets	121,935	123,974	128,067	132,078	135,697	210,857	215,720	216,838	220,224	219,916	222,041
Long-Term Investments	6,839	7,097	9,415	9,879	11,423	13,367	14,807	14,600	15,778	15,581	16,035
Goodwill	67,459	67,905	67,940	67,886	67,790	118,931	119,163	119,220	119,374	119,191	119,329
Intangible Assets	10,808	10,354	9,879	9,366	8,895	29,896	28,828	27,597	26,751	25,385	23,968
Other Noncurrent Operating Assets	36,829	38,618	40,833	44,947	47,589	48,663	52,922	55,421	58,321	59,759	62,709
Total Liabilities & Shareholders' Equity	359,784	364,552	380,088	411,976	445,785	470,558	484,275	512,163	523,013	533,898	562,624
Total Liabilities	186,218	181,416	185,405	205,753	225,071	232,290	231,123	243,686	235,290	231,203	240,733
Total Current Liabilities	87,389	81,718	85,691	104,149	124,792	121,016	118,525	125,286	115,200	108,882	114,206
Short-Term Debt	3,248	3,997	6,245	5,247	29,556	29,291	22,784	8,942	2,249	5,248	2,999
Accounts Payable	16,609	15,354	15,305	18,095	19,307	17,695	18,087	21,996	22,768	22,608	26,250
Current Deferred Revenue	41,340	36,982	36,903	50,901	46,429	43,068	41,888	57,582	53,026	45,508	44,636
Current Deferred & Payable Income Tax Liabilities	6,729	3,553	4,163	4,152	8,035	5,787	7,311	5,017	9,717	6,056	6,805
Current Employee Benefit Liabilities	7,405	9,030	10,411	11,009	6,990	8,813	10,432	12,564	8,326	9,176	10,579
Other Current Liabilities	12,058	12,802	12,664	14,745	14,475	16,362	18,023	19,185	19,114	20,286	22,937
Total Noncurrent Liabilities	98,829	99,698	99,714	101,604	100,279	111,274	112,598	118,400	120,090	122,321	126,527
Long-Term Debt	45,374	44,119	41,965	41,990	41,946	44,928	42,658	42,688	42,868	39,722	39,882
Noncurrent Deferred Revenue	26,261	26,813	27,698	28,472	25,742	28,856	29,731	30,533	27,115	26,926	27,901
Noncurrent Deferred & Payable Income Tax Liabilities	223	289	302	433	470	2,548	2,469	2,618	2,581	2,513	2,522
Other Noncurrent Operating Liabilities	26,971	28,477	29,749	30,709	32,121	34,942	37,740	42,561	47,526	53,160	56,222
Commitments & Contingencies	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total Equity & Noncontrolling Interests	173,566	183,136	194,683	206,223	220,714	238,268	253,152	268,477	287,723	302,695	321,891
Total Preferred & Common Equity	173,566	183,136	194,683	206,223	220,714	238,268	253,152	268,477	287,723	302,695	321,891
Total Common Equity	173,566	183,136	194,683	206,223	220,714	238,268	253,152	268,477	287,723	302,695	321,891
Common Stock	88,535	90,225	92,093	93,718	95,508	97,480	99,193	100,923	102,976	104,829	106,965
Retained Earnings	92,374	99,368	108,234	118,848	132,143	145,737	159,394	173,144	188,929	203,482	219,759
Accumulated Other Comprehensive Income / (Loss)	-7,343	-6,457	-5,644	-6,343	-6,937	-4,949	-5,435	-5,590	-4,182	-5,616	-4,833

This table displays calculated financial ratios and metrics derived from Microsoft's official financial filings.

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Period end date	6/30/2015	6/30/2016	6/30/2017	6/30/2018	6/30/2019	6/30/2020	6/30/2021	6/30/2022	6/30/2023	6/30/2024	6/30/2025
Growth Metrics	-	-	-	-	-	-	-	-	-	-	-
Revenue Growth	7.77%	-2.59%	5.94%	14.28%	14.03%	13.65%	17.53%	17.96%	6.88%	15.67%	14.93%
EBITDA Growth	-25.94%	31.87%	19.89%	20.83%	18.48%	18.89%	25.76%	18.59%	5.09%	26.07%	21.30%
EBIT Growth	-33.48%	38.54%	16.62%	21.98%	19.78%	21.40%	34.06%	17.74%	6.68%	20.69%	14.70%
NOPAT Growth	-45.68%	74.60%	18.44%	-35.63%	142.25%	14.59%	36.26%	20.25%	-1.00%	24.76%	18.31%
Net Income Growth	-44.76%	68.45%	24.10%	-34.99%	136.80%	12.85%	38.37%	18.72%	-0.52%	21.80%	15.54%
EPS Growth	-43.73%	72.97%	26.95%	-34.46%	137.56%	13.83%	39.76%	19.88%	0.31%	21.90%	15.59%
Operating Cash Flow Growth	-8.72%	12.33%	18.55%	11.08%	18.92%	16.27%	26.48%	16.02%	-1.63%	35.36%	14.86%
Free Cash Flow Firm Growth	4.29%	49.78%	-132.32%	428.49%	-13.19%	68.04%	-3.85%	-18.10%	39.53%	-118.52%	824.88%
Invested Capital Growth	-43.94%	-73.71%	1,853.05%	-33.16%	63.07%	10.78%	51.44%	64.03%	26.41%	73.80%	20.31%
Revenue Q/Q Growth	-1.27%	4.91%	-0.87%	4.23%	2.97%	3.11%	5.08%	2.97%	2.08%	3.61%	4.34%
EBITDA Q/Q Growth	-25.97%	54.71%	-2.14%	6.60%	4.38%	2.18%	7.57%	1.78%	4.18%	4.02%	6.90%
EBIT Q/Q Growth	-31.05%	75.03%	-4.10%	8.06%	4.59%	1.58%	9.19%	1.31%	4.98%	2.40%	4.54%
NOPAT Q/Q Growth	-39.85%	94.01%	4.78%	5.36%	12.74%	-3.96%	9.05%	0.83%	4.24%	3.34%	6.08%
Net Income Q/Q Growth	-39.04%	95.96%	4.97%	5.10%	12.35%	-4.29%	9.38%	0.39%	4.84%	2.27%	5.38%
EPS Q/Q Growth	-38.59%	93.94%	5.52%	6.50%	11.95%	-3.84%	9.52%	0.73%	4.76%	2.25%	5.49%
Operating Cash Flow Q/Q Growth	-9.01%	5.09%	6.87%	0.95%	9.87%	4.41%	5.55%	2.20%	4.96%	7.65%	4.17%
Free Cash Flow Firm Q/Q Growth	41.32%	23.46%	-210.02%	94.39%	10.58%	2.45%	12.41%	-2.39%	7.50%	-0.45%	8.69%
Invested Capital Q/Q Growth	-53.27%	-58.76%	71.60%	9.48%	12.07%	3.22%	3.33%	3.38%	2.53%	2.77%	2.80%
Profitability Metrics	-	-	-	-	-	-	-	-	-	-	-
Gross Margin	64.70%	64.04%	64.52%	65.25%	65.90%	67.78%	68.93%	68.40%	68.92%	69.76%	68.82%
EBITDA Margin	26.14%	35.39%	40.05%	42.35%	44.00%	46.03%	49.25%	49.52%	48.69%	53.07%	56.01%
Operating Margin	19.41%	28.61%	30.06%	31.77%	34.14%	37.03%	41.59%	42.06%	41.77%	44.64%	45.62%
EBIT Margin	19.78%	28.13%	30.96%	33.05%	34.72%	37.08%	42.30%	42.22%	42.14%	43.97%	43.88%
Profit (Net Income) Margin	13.03%	22.53%	26.39%	15.02%	31.18%	30.96%	36.45%	36.69%	34.15%	35.96%	36.15%
Tax Burden Percent	65.88%	80.11%	85.24%	45.43%	89.82%	83.49%	86.17%	86.89%	81.02%	81.77%	82.37%
Interest Burden Percent	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
Effective Tax Rate	34.12%	19.89%	14.76%	54.57%	10.18%	16.51%	13.83%	13.11%	18.98%	18.23%	17.63%
Return on Invested Capital (ROIC)	126.49%	486.79%	134.88%	54.71%	125.75%	110.30%	113.73%	86.00%	60.53%	49.40%	41.79%
ROIC Less NNEP Spread (ROIC-NNEP)	126.19%	487.28%	133.67%	53.56%	124.69%	110.20%	112.40%	85.58%	59.59%	51.79%	49.46%
Return on Net Nonoperating Assets (RNNOA)	-112.13%	-459.78%	-102.96%	-35.26%	-83.34%	-70.16%	-66.65%	-38.85%	-21.70%	-12.27%	-8.51%
Return on Equity (ROE)	14.36%	27.01%	31.92%	19.45%	42.41%	40.14%	47.08%	47.15%	38.82%	37.13%	33.28%
Cash Return on Invested Capital (CROIC)	182.80%	603.51%	-45.64%	94.46%	77.80%	100.07%	72.81%	37.50%	37.20%	-4.51%	23.36%
Operating Return on Assets (OROA)	10.67%	13.94%	13.48%	14.33%	16.02%	18.04%	22.39%	23.97%	22.99%	23.33%	21.86%
Return on Assets (ROA)	7.03%	11.16%	11.49%	6.51%	14.39%	15.07%	19.30%	20.82%	18.63%	19.07%	18.00%
Return on Common Equity (ROCE)	14.36%	27.01%	31.92%	19.45%	42.41%	40.14%	47.08%	47.15%	38.82%	37.13%	33.28%
Return on Equity Simple (ROE_SIMPLE)	15.23%	28.53%	29.06%	20.03%	38.35%	37.43%	43.15%	43.68%	35.09%	32.83%	0.00%
Net Operating Profit after Tax (NOPAT)	11,965	20,891	24,742	15,928	38,585	44,217	60,249	72,449	71,723	89,482	105,869
NOPAT Margin	12.79%	22.92%	25.62%	14.43%	30.66%	30.92%	35.84%	36.54%	33.85%	36.51%	37.58%
Net Nonoperating Expense Percent (NNEP)	0.30%	-0.49%	1.21%	1.15%	1.06%	0.09%	1.32%	0.41%	0.94%	-2.39%	-7.67%
Return On Investment Capital (ROIC_SIMPLE)	-	-	-	-	-	-	-	-	-	-	27.38%
Cost of Revenue to Revenue	35.30%	35.96%	35.48%	34.75%	34.10%	32.22%	31.07%	31.60%	31.08%	30.24%	31.18%
SG&A Expenses to Revenue	4.93%	5.01%	4.64%	4.31%	3.88%	3.57%	3.04%	2.98%	3.57%	3.10%	2.56%
R&D to Revenue	12.87%	13.15%	13.50%	13.34%	13.41%	13.47%	12.32%	12.36%	12.83%	12.04%	11.53%
Operating Expenses to Revenue	45.29%	35.43%	34.47%	33.48%	31.77%	30.75%	27.33%	26.35%	27.15%	25.12%	23.20%
Earnings before Interest and Taxes (EBIT)	18,507	25,639	29,901	36,474	43,688	53,036	71,102	83,716	89,311	107,787	123,627
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)	24,464	32,261	38,679	46,735	55,370	65,832	82,788	98,176	103,172	130,074	157,780
Valuation Ratios	-	-	-	-	-	-	-	-	-	-	-
Price to Book Value (P/BV)	3.89	5.01	5.57	8.58	9.55	12.57	13.98	11.31	12.16	12.35	10.76
Price to Tangible Book Value (P/TBV)	5.34	7.16	11.51	18.21	18.59	21.90	23.50	21.48	19.45	27.26	18.36
Price to Revenue (P/Rev)	3.33	3.96	5.06	6.43	7.77	10.40	11.81	9.50	11.83	13.53	13.12
Price to Earnings (P/E)	25.55	17.55	19.18	42.83	24.90	33.59	32.40	25.91	34.66	37.62	36.31
Dividend Yield	3.14%	3.03%	2.42%	1.79%	1.41%	1.01%	0.83%	0.96%	0.79%	0.66%	0.65%
Earnings Yield	3.91%	5.70%	5.21%	2.33%	4.02%	2.98%	3.09%	3.86%	2.89%	2.66%	2.75%
Enterprise Value to Invested Capital (EV/IC)	35.05	162.48	12.50	27.88	24.00	33.49	29.88	17.41	18.40	14.25	13.12
Enterprise Value to Revenue (EV/Rev)	2.55	3.19	4.52	5.89	7.25	9.87	11.35	9.19	11.49	13.37	12.89
Enterprise Value to EBITDA (EV/EBITDA)	9.74	9.00	11.28	13.92	16.49	21.44	23.04	18.56	23.59	25.20	23.01
Enterprise Value to EBIT (EV/EBIT)	12.87	11.32	14.59	17.83	20.90	26.61	26.82	21.77	27.25	30.41	29.36
Enterprise Value to NOPAT (EV/NOPAT)	19.91	13.90	17.63	40.83	23.66	31.91	31.65	25.15	33.94	36.63	34.29
Enterprise Value to Operating Cash Flow (EV/OCF)	8.03	8.71	11.04	14.82	17.49	23.26	24.85	20.47	27.79	27.65	26.66
Enterprise Value to Free Cash Flow (EV/FCFF)	13.78	11.21	0.00	23.65	38.24	35.17	49.44	57.69	55.22	0.00	61.35
Leverage & Solvency	-	-	-	-	-	-	-	-	-	-	-
Debt to Equity	0.44	0.74	0.98	0.92	0.71	0.54	0.41	0.30	0.23	0.19	0.13
Long-Term Debt to Equity	0.35	0.56	0.87	0.87	0.65	0.50	0.35	0.28	0.20	0.16	0.12
Financial Leverage	-0.89	-0.94	-0.77	-0.66	-0.67	-0.64	-0.59	-0.45	-0.36	-0.24	-0.17
Leverage Ratio	2.04	2.42	2.78	2.99	2.95	2.66	2.44	2.26	2.08	1.95	1.85
Compound Leverage Factor	2.04	2.42	2.78	2.99	2.95	2.66	2.44	2.26	2.08	1.95	1.85
Debt to Total Capital	30.59%	42.61%	49.56%	47.96%	41.36%	34.87%	29.05%	23.01%	18.64%	16.13%	11.16%
Short-Term Debt to Total Capital	6.49%	10.29%	5.82%	2.52%	3.16%	2.06%	4.03%	1.27%	2.07%	2.79%	0.78%
Long-Term Debt to Total Capital	24.10%	32.33%	43.74%	45.45%	38.20%	32.80%	25.02%	21.74%	16.57%	13.34%	10.39%
Preferred Equity to Total Capital	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Noncontrolling Interests to Total Capital	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Common Equity to Total Capital	69.41%	57.39%	50.44%	52.04%	58.64%	65.13%	70.95%	76.99%	81.36%	83.87%	88.84%
Debt to EBITDA	1.44	1.66	2.23	1.63	1.30	0.96	0.70	0.51	0.46	0.40	0.27
Net Debt to EBITDA	-3.00	-2.18	-1.37	-1.27	-1.16	-1.16	-0.94	-0.63	-0.72	-0.30	-0.42
Long-Term Debt to EBITDA	1.14	1.26	1.97	1.55	1.20	0.91	0.60	0.48	0.41	0.33	0.25
Debt to NOPAT	2.95	2.56	3.48	4.79	1.87	1.43	0.97	0.69	0.66	0.58	0.41
Net Debt to NOPAT	-6.13	-3.36	-2.13	-3.73	-1.67	-1.72	-1.30	-0.85	-1.03	-0.43	-0.63
Long-Term Debt to NOPAT	2.32	1.94	3.07	4.54	1.73	1.35	0.83	0.65	0.59	0.48	0.38
Altman Z-Score	3.44	3.20	3.20	3.90	4.69	6.53	8.00	7.57	9.18	9.89	9.80
Noncontrolling Interest Sharing Ratio	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Liquidity Ratios	-	-	-	-	-	-	-	-	-	-	-
Current Ratio	2.47	2.35	2.92	2.90	2.53	2.52	2.08	1.78	1.77	1.28	1.35
Quick Ratio	2.31	2.22	2.79	2.74	2.35	2.33	1.90	1.57	1.54	1.06	1.16
Cash Flow Metrics	-	-	-	-	-	-	-	-	-	-	-
Free Cash Flow to Firm (FCFF)	17,292	25,900	-8,372	27,501	23,873	40,118	38,572	31,590	44,079	-8,163	59,173
Operating Cash Flow to CapEx	499.13%	399.44%	486.00%	377.27%	374.76%	392.95%	372.13%	372.75%	311.60%	266.54%	210.94%
Free Cash Flow to Firm to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Operating Cash Flow to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Operating Cash Flow Less CapEx to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Efficiency Ratios	-	-	-	-	-	-	-	-	-	-	-
Asset Turnover	0.54	0.50	0.44	0.43	0.46	0.49	0.53	0.57	0.55	0.53	0.50
Accounts Receivable Turnover	5.00	5.04	4.74	4.51	4.49	4.65	4.80	4.82	4.56	4.64	4.44
Inventory Turnover	11.88	12.72	15.46	15.84	18.16	23.28	23.06	19.65	21.10	39.57	80.43
Fixed Asset Turnover	6.75	5.51	4.59	4.15	3.82	3.55	3.24	2.96	2.49	2.12	1.65
Accounts Payable Turnover	4.71	4.86	4.80	4.79	4.77	4.21	3.77	3.67	3.55	3.70	3.53
Days Sales Outstanding (DSO)	73.04	72.45	76.93	80.88	81.22	78.52	76.06	75.76	80.05	78.63	82.16
Days Inventory Outstanding (DIO)	30.72	28.69	23.61	23.05	20.10	15.68	15.83	18.58	17.30	9.22	4.54
Days Payable Outstanding (DPO)	77.46	75.10	76.11	76.17	76.55	86.79	96.76	99.52	102.79	98.72	103.31
Cash Conversion Cycle (CCC)	26.30	26.04	24.43	27.76	24.76	7.41	-4.87	-5.18	-5.44	-10.87	-16.61
Capital & Investment Metrics	-	-	-	-	-	-	-	-	-	-	-
Invested Capital	6,796	1,787	34,901	23,328	38,040	42,139	63,816	104,675	132,319	229,964	276,660
Invested Capital Turnover	9.89	21.24	5.26	7.58	4.10	3.57	3.17	2.35	1.79	1.35	1.11
Increase / (Decrease) in Invested Capital	-5,327	-5,009	33,114	-11,573	14,712	4,099	21,677	40,859	27,644	97,645	46,696
Enterprise Value (EV)	238,211	290,343	436,168	650,343	912,928	1,411,110	1,907,095	1,822,421	2,434,003	3,277,379	3,630,203
Market Capitalization	311,498	360,553	488,978	709,733	977,218	1,487,275	1,985,267	1,884,288	2,507,907	3,315,892	3,697,022
Book Value per Share	$9.90	$9.16	$11.36	$10.77	$13.35	$15.60	$18.85	$22.27	$27.74	$36.12	$46.21
Tangible Book Value per Share	$7.21	$6.41	$5.50	$5.07	$6.86	$8.96	$11.22	$11.73	$17.35	$16.37	$27.09
Total Capital	115,375	125,458	173,905	158,958	174,508	181,631	200,134	216,323	253,460	320,107	386,630
Total Debt	35,292	53,461	86,194	76,240	72,178	63,327	58,146	49,781	47,237	51,630	43,151
Total Long-Term Debt	27,808	40,557	76,073	72,242	66,662	59,578	50,074	47,032	41,990	42,688	40,152
Net Debt	-73,287	-70,210	-52,810	-59,390	-64,290	-76,165	-78,172	-61,867	-73,904	-38,513	-66,819
Capital Expenditures (CapEx)	5,944	8,343	8,129	11,632	13,925	15,441	20,622	23,886	28,107	44,477	64,551
Debt-free, Cash-free Net Working Capital (DFCFNWC)	-15,892	-20,033	-15,909	-18,596	-22,171	-23,173	-26,513	-27,406	-25,907	-32,153	-41,653
Debt-free Net Working Capital (DFNWC)	80,634	93,207	117,072	115,172	111,648	113,354	103,821	77,351	85,355	43,390	52,912
Net Working Capital (NWC)	73,150	80,303	106,951	111,174	106,132	109,605	95,749	74,602	80,108	34,448	49,913
Net Nonoperating Expense (NNE)	-228	352	-747	-643	-655	-64	-1,022	-289	-638	1,346	4,037
Net Nonoperating Obligations (NNO)	-73,287	-70,210	-52,810	-59,390	-64,290	-76,165	-78,172	-61,867	-73,904	-38,513	-66,819
Total Depreciation and Amortization (D&A)	5,957	6,622	8,778	10,261	11,682	12,796	11,686	14,460	13,861	22,287	34,153
Debt-free, Cash-free Net Working Capital to Revenue	-16.98%	-21.98%	-16.47%	-16.85%	-17.62%	-16.20%	-15.77%	-13.82%	-12.23%	-13.12%	-14.79%
Debt-free Net Working Capital to Revenue	86.17%	102.25%	121.23%	104.36%	88.72%	79.26%	61.77%	39.01%	40.28%	17.70%	18.78%
Net Working Capital to Revenue	78.17%	88.10%	110.75%	100.74%	84.34%	76.64%	56.96%	37.63%	37.80%	14.05%	17.72%
Earnings Adjustments	-	-	-	-	-	-	-	-	-	-	-
Adjusted Basic Earnings per Share	$1.49	$2.12	$2.74	$2.15	$5.11	$5.82	$8.12	$9.70	$9.72	$11.86	$13.70
Adjusted Weighted Average Basic Shares Outstanding	8.18B	7.93B	7.75B	7.70B	7.67B	7.61B	7.55B	7.50B	7.45B	7.43B	7.43B
Adjusted Diluted Earnings per Share	$1.48	$2.10	$2.71	$2.13	$5.06	$5.76	$8.05	$9.65	$9.68	$11.80	$13.64
Adjusted Weighted Average Diluted Shares Outstanding	8.25B	8.01B	7.83B	7.79B	7.75B	7.68B	7.61B	7.54B	7.47B	7.47B	7.47B
Adjusted Basic & Diluted Earnings per Share	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00
Adjusted Weighted Average Basic & Diluted Shares Outstanding	8.00B	7.79B	7.70B	7.67B	7.64B	7.57B	7.51B	7.46B	7.43B	7.43B	7.43B
Normalized Net Operating Profit after Tax (NOPAT)	18,561	21,780	25,003	24,541	38,585	44,217	60,249	72,449	71,723	89,482	105,869
Normalized NOPAT Margin	19.83%	23.89%	25.89%	22.24%	30.66%	30.92%	35.84%	36.54%	33.85%	36.51%	37.58%
Pre Tax Income Margin	19.78%	28.13%	30.96%	33.05%	34.72%	37.08%	42.30%	42.22%	42.14%	43.97%	43.88%
Debt Service Ratios	-	-	-	-	-	-	-	-	-	-	-
EBIT to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
NOPAT to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
EBIT Less CapEx to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
NOPAT Less CapEx to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Payout Ratios	-	-	-	-	-	-	-	-	-	-	-
Dividend Payout Ratio	81.05%	53.59%	46.47%	76.63%	35.20%	34.18%	26.96%	24.93%	27.36%	24.70%	23.65%
Augmented Payout Ratio	199.50%	131.34%	92.72%	141.33%	85.00%	86.05%	71.66%	69.88%	58.10%	44.28%	41.74%

This table displays calculated financial ratios and metrics derived from Microsoft's official financial filings.

Metric	Q2 2023	Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025
Period end date	12/31/2022	3/31/2023	6/30/2023	9/30/2023	12/31/2023	3/31/2024	6/30/2024	9/30/2024	12/31/2024	3/31/2025	6/30/2025
Growth Metrics	-	-	-	-	-	-	-	-	-	-	-
Revenue Growth	1.97%	7.08%	8.34%	12.76%	17.58%	17.03%	15.20%	16.04%	12.27%	13.27%	18.10%
EBITDA Growth	-7.78%	9.43%	16.90%	28.09%	35.43%	24.91%	17.58%	20.66%	11.41%	22.48%	30.30%
EBIT Growth	-9.66%	12.30%	20.70%	26.48%	30.42%	17.88%	10.20%	10.94%	10.70%	17.40%	19.69%
NOPAT Growth	-11.15%	6.92%	17.39%	25.47%	35.29%	25.50%	14.65%	13.31%	16.60%	16.33%	26.91%
Net Income Growth	-12.47%	9.39%	19.96%	26.97%	33.15%	19.89%	9.74%	10.66%	10.23%	17.71%	23.58%
EPS Growth	-11.29%	10.36%	19.64%	27.23%	33.18%	20.00%	9.70%	10.37%	10.24%	17.69%	24.15%
Operating Cash Flow Growth	-22.84%	-3.72%	16.81%	31.83%	68.74%	30.59%	29.28%	11.76%	18.24%	16.06%	14.66%
Free Cash Flow Firm Growth	-270.18%	56.84%	67.00%	69.61%	-160.99%	-638.39%	-844.53%	-1,033.83%	76.90%	73.62%	75.97%
Invested Capital Growth	54.07%	27.46%	26.41%	26.60%	74.98%	73.39%	73.80%	74.39%	19.45%	20.27%	20.31%
Revenue Q/Q Growth	5.24%	0.21%	6.30%	0.58%	9.74%	-0.26%	4.64%	1.33%	6.17%	0.62%	9.10%
EBITDA Q/Q Growth	-1.54%	9.32%	9.07%	9.10%	4.10%	0.83%	2.67%	11.96%	-3.88%	10.84%	9.23%
EBIT Q/Q Growth	-5.72%	11.48%	9.06%	10.34%	-2.78%	0.76%	1.96%	11.08%	-2.99%	6.85%	3.95%
NOPAT Q/Q Growth	-5.93%	9.51%	9.18%	11.56%	1.43%	1.58%	-0.26%	10.26%	4.37%	1.35%	8.81%
Net Income Q/Q Growth	-6.44%	11.41%	9.74%	11.01%	-1.89%	0.32%	0.44%	11.94%	-2.27%	7.12%	5.46%
EPS Q/Q Growth	-6.38%	11.36%	9.39%	11.57%	-2.01%	0.34%	0.00%	12.24%	-2.12%	7.12%	5.49%
Operating Cash Flow Q/Q Growth	-51.84%	118.75%	17.71%	6.30%	-38.35%	69.29%	16.54%	-8.11%	-34.78%	66.18%	15.13%
Free Cash Flow Firm Q/Q Growth	-22.19%	64.20%	18.58%	14.66%	-949.41%	-1.27%	-4.15%	-2.44%	78.62%	-15.67%	5.15%
Invested Capital Q/Q Growth	15.32%	3.53%	2.53%	3.42%	59.38%	2.60%	2.77%	3.77%	9.18%	3.30%	2.80%
Profitability Metrics	-	-	-	-	-	-	-	-	-	-	-
Gross Margin	66.85%	69.49%	70.11%	71.16%	68.36%	70.08%	69.59%	69.35%	68.69%	68.72%	68.58%
EBITDA Margin	45.48%	49.61%	50.90%	55.21%	52.38%	52.95%	51.96%	57.41%	51.98%	57.26%	57.32%
Operating Margin	38.67%	42.29%	43.17%	47.59%	43.59%	44.59%	43.14%	46.58%	45.46%	45.67%	44.90%
EBIT Margin	38.56%	42.90%	44.01%	48.28%	42.77%	43.21%	42.10%	46.15%	42.17%	44.78%	42.67%
Profit (Net Income) Margin	31.14%	34.62%	35.74%	39.44%	35.26%	35.47%	34.04%	37.61%	34.62%	36.86%	35.63%
Tax Burden Percent	80.76%	80.71%	81.21%	81.70%	82.45%	82.09%	80.87%	81.49%	82.10%	82.30%	83.50%
Interest Burden Percent	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
Effective Tax Rate	19.24%	19.29%	18.79%	18.30%	17.55%	17.91%	19.13%	18.51%	17.90%	17.70%	16.50%
Return on Invested Capital (ROIC)	62.02%	61.53%	62.69%	69.31%	47.72%	49.08%	47.21%	51.40%	40.83%	41.18%	41.70%
ROIC Less NNEP Spread (ROIC-NNEP)	62.09%	61.12%	62.12%	68.88%	48.78%	50.56%	48.18%	51.75%	46.85%	42.43%	44.40%
Return on Net Nonoperating Assets (RNNOA)	-24.90%	-21.76%	-22.63%	-26.09%	-9.11%	-10.73%	-11.41%	-13.53%	-5.40%	-6.06%	-7.64%
Return on Equity (ROE)	37.12%	39.77%	40.06%	43.22%	38.62%	38.36%	35.80%	37.87%	35.43%	35.12%	34.05%
Cash Return on Invested Capital (CROIC)	23.25%	35.61%	37.20%	38.73%	-6.69%	-4.61%	-4.51%	-5.00%	22.43%	22.09%	23.36%
Operating Return on Assets (OROA)	22.33%	24.57%	24.01%	26.17%	23.31%	23.65%	22.33%	24.22%	21.98%	23.10%	21.25%
Return on Assets (ROA)	18.03%	19.83%	19.50%	21.38%	19.22%	19.42%	18.06%	19.74%	18.05%	19.01%	17.75%
Return on Common Equity (ROCE)	37.12%	39.77%	40.06%	43.22%	38.62%	38.36%	35.80%	37.87%	35.43%	35.12%	34.05%
Return on Equity Simple (ROE_SIMPLE)	36.83%	35.45%	0.00%	34.93%	34.64%	34.04%	0.00%	31.46%	30.64%	30.02%	0.00%
Net Operating Profit after Tax (NOPAT)	16,473	18,040	19,697	21,973	22,287	22,640	22,582	24,898	25,986	26,337	28,658
NOPAT Margin	31.23%	34.13%	35.05%	38.88%	35.94%	36.60%	34.89%	37.96%	37.32%	37.59%	37.49%
Net Nonoperating Expense Percent (NNEP)	-0.07%	0.41%	0.57%	0.43%	-1.06%	-1.48%	-0.97%	-0.35%	-6.03%	-1.25%	-2.71%
Return On Investment Capital (ROIC_SIMPLE)	-	-	-	-	7.13%	-	-	-	7.47%	7.22%	7.41%
Cost of Revenue to Revenue	33.15%	30.51%	29.89%	28.84%	31.64%	29.92%	30.41%	30.65%	31.31%	31.28%	31.42%
SG&A Expenses to Revenue	4.43%	3.11%	3.91%	2.61%	3.19%	3.09%	3.47%	2.55%	2.62%	2.48%	2.60%
R&D to Revenue	12.98%	13.21%	11.99%	11.78%	11.52%	12.37%	12.45%	11.50%	11.37%	11.70%	11.55%
Operating Expenses to Revenue	28.17%	27.20%	26.94%	23.57%	24.77%	25.50%	26.45%	22.77%	23.24%	23.05%	23.68%
Earnings before Interest and Taxes (EBIT)	20,339	22,673	24,727	27,284	26,526	26,727	27,250	30,269	29,365	31,377	32,616
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)	23,987	26,222	28,601	31,205	32,485	32,754	33,630	37,652	36,192	40,117	43,819
Valuation Ratios	-	-	-	-	-	-	-	-	-	-	-
Price to Book Value (P/BV)	9.62	10.89	12.16	10.55	11.64	12.30	12.35	11.12	10.35	8.67	10.76
Price to Tangible Book Value (P/TBV)	16.80	18.15	19.45	16.17	31.02	29.62	27.26	22.59	19.82	15.63	18.36
Price to Revenue (P/Rev)	8.64	10.22	11.83	10.67	12.19	13.17	13.53	12.58	11.97	10.34	13.12
Price to Earnings (P/E)	26.13	30.73	34.66	30.20	33.61	36.14	37.62	35.34	33.79	28.88	36.31
Dividend Yield	1.07%	0.91%	0.79%	0.87%	0.75%	0.68%	0.66%	0.70%	0.73%	0.84%	0.65%
Earnings Yield	3.83%	3.25%	2.89%	3.31%	2.98%	2.77%	2.66%	2.83%	2.96%	3.46%	2.75%
Enterprise Value to Invested Capital (EV/IC)	13.67	15.93	18.40	16.40	12.63	13.79	14.25	13.20	11.87	10.17	13.12
Enterprise Value to Revenue (EV/Rev)	8.35	9.90	11.49	10.28	12.10	13.04	13.37	12.39	11.81	10.14	12.89
Enterprise Value to EBITDA (EV/EBITDA)	17.61	20.75	23.59	20.40	23.24	24.68	25.20	23.07	22.05	18.55	23.01
Enterprise Value to EBIT (EV/EBIT)	20.63	24.16	27.25	23.62	27.21	29.31	30.41	28.43	27.21	23.15	29.36
Enterprise Value to NOPAT (EV/NOPAT)	25.19	29.87	33.94	29.46	33.59	35.63	36.63	34.08	32.17	27.43	34.29
Enterprise Value to Operating Cash Flow (EV/OCF)	20.19	24.63	27.79	23.64	26.83	28.02	27.65	25.78	24.62	20.95	26.66
Enterprise Value to Free Cash Flow (EV/FCFF)	71.32	50.13	55.22	47.32	0.00	0.00	0.00	0.00	57.60	50.29	61.35
Leverage & Solvency	-	-	-	-	-	-	-	-	-	-	-
Debt to Equity	0.26	0.25	0.23	0.32	0.31	0.26	0.19	0.16	0.15	0.13	0.13
Long-Term Debt to Equity	0.24	0.22	0.20	0.19	0.19	0.17	0.16	0.15	0.13	0.12	0.12
Financial Leverage	-0.40	-0.36	-0.36	-0.38	-0.19	-0.21	-0.24	-0.26	-0.12	-0.14	-0.17
Leverage Ratio	2.05	2.03	2.08	2.04	1.98	1.93	1.95	1.91	1.86	1.82	1.85
Compound Leverage Factor	2.05	2.03	2.08	2.04	1.98	1.93	1.95	1.91	1.86	1.82	1.85
Debt to Total Capital	20.81%	19.85%	18.64%	24.47%	23.75%	20.54%	16.13%	13.56%	12.93%	11.76%	11.16%
Short-Term Debt to Total Capital	1.73%	2.57%	2.07%	10.11%	9.37%	7.15%	2.79%	0.68%	1.51%	0.82%	0.78%
Long-Term Debt to Total Capital	19.08%	17.28%	16.57%	14.35%	14.38%	13.39%	13.34%	12.88%	11.43%	10.93%	10.39%
Preferred Equity to Total Capital	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Noncontrolling Interests to Total Capital	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Common Equity to Total Capital	79.19%	80.15%	81.36%	75.53%	76.25%	79.46%	83.87%	86.44%	87.07%	88.24%	88.84%
Debt to EBITDA	0.50	0.49	0.46	0.65	0.63	0.52	0.40	0.33	0.32	0.29	0.27
Net Debt to EBITDA	-0.60	-0.66	-0.72	-0.76	-0.17	-0.24	-0.30	-0.36	-0.30	-0.36	-0.42
Long-Term Debt to EBITDA	0.46	0.42	0.41	0.38	0.38	0.34	0.33	0.31	0.28	0.27	0.25
Debt to NOPAT	0.71	0.70	0.66	0.94	0.91	0.76	0.58	0.49	0.47	0.43	0.41
Net Debt to NOPAT	-0.86	-0.95	-1.03	-1.10	-0.25	-0.34	-0.43	-0.53	-0.44	-0.53	-0.63
Long-Term Debt to NOPAT	0.65	0.61	0.59	0.55	0.55	0.49	0.48	0.46	0.41	0.40	0.38
Altman Z-Score	7.20	8.25	8.66	7.54	8.34	9.29	9.37	9.42	9.42	8.26	9.31
Noncontrolling Interest Sharing Ratio	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Liquidity Ratios	-	-	-	-	-	-	-	-	-	-	-
Current Ratio	1.93	1.91	1.77	1.66	1.22	1.24	1.28	1.30	1.35	1.37	1.35
Quick Ratio	1.66	1.66	1.54	1.45	1.02	1.05	1.06	1.06	1.10	1.15	1.16
Cash Flow Metrics	-	-	-	-	-	-	-	-	-	-	-
Free Cash Flow to Firm (FCFF)	-27,269	-9,761	-7,947	-6,782	-71,169	-72,075	-75,063	-76,894	-16,440	-19,016	-18,038
Operating Cash Flow to CapEx	178.08%	369.93%	321.70%	308.39%	193.66%	291.43%	268.11%	229.04%	141.05%	221.22%	249.70%
Free Cash Flow to Firm to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Operating Cash Flow to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Operating Cash Flow Less CapEx to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Efficiency Ratios	-	-	-	-	-	-	-	-	-	-	-
Asset Turnover	0.58	0.57	0.55	0.54	0.55	0.55	0.53	0.52	0.52	0.52	0.50
Accounts Receivable Turnover	5.89	5.93	4.56	6.40	5.79	5.81	4.64	6.27	5.75	5.64	4.44
Inventory Turnover	21.66	21.22	21.10	18.36	29.97	34.07	39.57	33.68	63.46	77.60	80.43
Fixed Asset Turnover	2.72	2.62	2.49	2.43	2.33	2.26	2.12	1.99	1.88	1.77	1.65
Accounts Payable Turnover	4.24	4.17	3.55	3.71	4.17	4.27	3.70	3.70	3.97	3.77	3.53
Days Sales Outstanding (DSO)	62.02	61.57	80.05	57.04	63.08	62.83	78.63	58.23	63.45	64.70	82.16
Days Inventory Outstanding (DIO)	16.85	17.20	17.30	19.88	12.18	10.71	9.22	10.84	5.75	4.70	4.54
Days Payable Outstanding (DPO)	86.13	87.46	102.79	98.25	87.61	85.56	98.72	98.56	91.84	96.90	103.31
Cash Conversion Cycle (CCC)	-7.26	-8.70	-5.44	-21.33	-12.34	-12.02	-10.87	-29.49	-22.64	-27.50	-16.61
Capital & Investment Metrics	-	-	-	-	-	-	-	-	-	-	-
Invested Capital	124,647	129,051	132,319	136,842	218,103	223,766	229,964	238,634	260,529	269,119	276,660
Invested Capital Turnover	1.99	1.80	1.79	1.78	1.33	1.34	1.35	1.35	1.09	1.10	1.11
Increase / (Decrease) in Invested Capital	43,742	27,801	27,644	28,755	93,456	94,715	97,645	101,792	42,426	45,353	46,696
Enterprise Value (EV)	1,703,898	2,055,292	2,434,003	2,244,598	2,753,919	3,085,504	3,277,379	3,149,347	3,091,636	2,737,871	3,630,203
Market Capitalization	1,762,387	2,120,924	2,507,907	2,328,470	2,774,084	3,114,890	3,315,892	3,198,436	3,133,802	2,790,643	3,697,022
Book Value per Share	$24.57	$26.15	$27.74	$29.71	$32.06	$34.07	$36.12	$38.71	$40.71	$43.30	$46.21
Tangible Book Value per Share	$14.07	$15.70	$17.35	$19.39	$12.03	$14.15	$16.37	$19.05	$21.27	$24.02	$27.09
Total Capital	231,252	242,893	253,460	292,216	312,487	318,594	320,107	332,840	347,665	364,772	386,630
Total Debt	48,116	48,210	47,237	71,502	74,219	65,442	51,630	45,117	44,970	42,881	43,151
Total Long-Term Debt	44,119	41,965	41,990	41,946	44,928	42,658	42,688	42,868	39,722	39,882	40,152
Net Debt	-58,489	-65,632	-73,904	-83,872	-20,165	-29,386	-38,513	-49,089	-42,166	-52,772	-66,819
Capital Expenditures (CapEx)	6,274	6,607	8,943	9,917	9,735	10,952	13,873	14,923	15,804	16,745	17,079
Debt-free, Cash-free Net Working Capital (DFCFNWC)	-19,406	-19,984	-25,907	-31,601	-25,349	-28,582	-32,153	-41,453	-28,109	-34,181	-41,653
Debt-free Net Working Capital (DFNWC)	80,102	84,443	85,355	112,350	55,668	51,439	43,390	36,975	43,446	45,437	52,912
Net Working Capital (NWC)	76,105	78,198	80,108	82,794	26,377	28,655	34,448	34,726	38,198	42,438	49,913
Net Nonoperating Expense (NNE)	48	-259	-384	-318	417	701	546	231	1,878	513	1,425
Net Nonoperating Obligations (NNO)	-58,489	-65,632	-73,904	-83,872	-20,165	-29,386	-38,513	-49,089	-42,166	-52,772	-66,819
Total Depreciation and Amortization (D&A)	3,648	3,549	3,874	3,921	5,959	6,027	6,380	7,383	6,827	8,740	11,203
Debt-free, Cash-free Net Working Capital to Revenue	-9.51%	-9.63%	-12.23%	-14.48%	-11.14%	-12.08%	-13.12%	-16.31%	-10.74%	-12.66%	-14.79%
Debt-free Net Working Capital to Revenue	39.25%	40.68%	40.28%	51.46%	24.46%	21.74%	17.70%	14.55%	16.60%	16.83%	18.78%
Net Working Capital to Revenue	37.29%	37.67%	37.80%	37.93%	11.59%	12.11%	14.05%	13.66%	14.59%	15.72%	17.72%
Earnings Adjustments	-	-	-	-	-	-	-	-	-	-	-
Adjusted Basic Earnings per Share	$2.20	$2.46	$2.71	$3.00	$2.94	$2.95	$2.97	$3.32	$3.24	$3.47	$3.67
Adjusted Weighted Average Basic Shares Outstanding	7.45B	7.44B	7.45B	7.43B	7.43B	7.43B	7.43B	7.43B	7.44B	7.43B	7.43B
Adjusted Diluted Earnings per Share	$2.20	$2.45	$2.68	$2.99	$2.93	$2.94	$2.94	$3.30	$3.23	$3.46	$3.65
Adjusted Weighted Average Diluted Shares Outstanding	7.47B	7.46B	7.47B	7.46B	7.47B	7.47B	7.47B	7.47B	7.47B	7.46B	7.47B
Adjusted Basic & Diluted Earnings per Share	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00
Adjusted Weighted Average Basic & Diluted Shares Outstanding	7.44B	7.44B	7.43B	7.43B	7.43B	7.43B	7.43B	7.43B	7.43B	7.43B	7.43B
Normalized Net Operating Profit after Tax (NOPAT)	16,473	18,040	19,697	21,973	22,287	22,640	22,582	24,898	25,986	26,337	28,658
Normalized NOPAT Margin	31.23%	34.13%	35.05%	38.88%	35.94%	36.60%	34.89%	37.96%	37.32%	37.59%	37.49%
Pre Tax Income Margin	38.56%	42.90%	44.01%	48.28%	42.77%	43.21%	42.10%	46.15%	42.17%	44.78%	42.67%
Debt Service Ratios	-	-	-	-	-	-	-	-	-	-	-
EBIT to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
NOPAT to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
EBIT Less CapEx to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
NOPAT Less CapEx to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Payout Ratios	-	-	-	-	-	-	-	-	-	-	-
Dividend Payout Ratio	28.12%	28.08%	27.36%	26.24%	25.12%	24.66%	24.70%	24.63%	24.68%	24.30%	23.65%
Augmented Payout Ratio	70.53%	64.73%	58.10%	54.13%	49.41%	46.41%	44.28%	42.89%	43.56%	43.02%	41.74%

Key Financial Trends

Microsoft Corporation (NASDAQ: MSFT) has demonstrated continued growth and financial strength over the last four years across its income statement, cash flow statement, and balance sheet. Here are the key trends and points retail investors should note based on the data from Q1 2021 through Q4 2025:

Consistent Revenue Growth: Total revenue increased steadily, from around $37.15 billion in Q1 2021 to $76.44 billion in Q4 2025, reflecting strong top-line momentum.
Rising Net Income: Net income rose significantly from $13.89 billion (Q1 2021) to $27.23 billion (Q4 2025), indicating improving profitability.
Strong Operating Income Growth: Operating income increased from $15.88 billion in Q1 2021 to $34.32 billion in Q4 2025, demonstrating effective cost management and operational leverage.
Robust Cash Flows from Operating Activities: Operating cash flow grew from ~$19.34 billion in Q1 2021 to $42.65 billion in Q4 2025, reflecting strong cash generation capability.
Increasing Investment in Property, Plant & Equipment: Microsoft consistently invested heavily with capital expenditures rising over time (from $4.9 billion in Q1 2021 to $17.1 billion in Q4 2025), supporting growth and infrastructure expansion.
Healthy Shareholder Returns: Dividends per share have increased from $0.56 in early 2021 to $0.83 by 2025 Q4, and the company has engaged in share repurchases, signaling confidence and returning value to shareholders.
Strong Balance Sheet with Growing Equity: Total common equity grew from around $123 billion in Q1 2021 to $322 billion in Q3 2025, indicating a solid capital base and retained earnings growth.
Rising Long-term Debt Levels: While overall debt levels increased from about $57 billion (Q1 2021) to roughly $40 billion short-term and $39 billion long-term debt (Q3 2025), Microsoft’s strong cash flows mitigate significant risk.
R&D and Marketing Expenses Increasing: Research & Development expenses increased steadily, reaching $8.8 billion in Q4 2025, with marketing expenses also rising, signaling continued focus on innovation and market expansion, although this impacts operating expenses.
Net Other Expense Impacting Income: There is a growing trend of negative other income/expense (e.g., –$1.7 billion in Q4 2025), which negatively affected pre-tax income, warranting investigation into underlying causes.

Summary: Microsoft has shown a consistent upward trajectory in revenue, profitability, and cash flow over the past four years. Its substantial investment in capital expenditures and R&D underscores commitment to long-term growth. The company maintains a strong balance sheet and demonstrates healthy cash flow generation, which supports shareholder returns through dividends and buybacks. Potential concerns include increasing other expenses and debt levels, but these are mitigated by Microsoft’s robust fundamentals.

Overall, the financial trends bode well for long-term investors looking for steady growth and resilient financial health in one of the leading global technology companies.

08/10/25 03:50 AMAI Generated. May Contain Errors.

Frequently Asked Questions About Microsoft's Financials

When does Microsoft's fiscal year end?

According to the most recent income statement we have on file, Microsoft's financial year ends in June. Their financial year 2025 ended on June 30, 2025.

How has Microsoft's net income changed over the last 10 years?

Microsoft's net income appears to be on an upward trend, with a most recent value of $101.83 billion in 2025, rising from $12.19 billion in 2015. The previous period was $88.14 billion in 2024. View Microsoft's forecast to see where analysts expect Microsoft to go next.

What is Microsoft's operating income?

Microsoft's total operating income in 2025 was $128.53 billion, based on the following breakdown:

Total Gross Profit: $193.89 billion
Total Operating Expenses: $65.37 billion

How has Microsoft's revenue changed over the last 10 years?

Over the last 10 years, Microsoft's total revenue changed from $93.58 billion in 2015 to $281.72 billion in 2025, a change of 201.1%.

How much debt does Microsoft have?

Microsoft's total liabilities were at $275.52 billion at the end of 2025, a 13.1% increase from 2024, and a 191.9% increase since 2015.

How much cash does Microsoft have?

In the past 10 years, Microsoft's cash and equivalents has ranged from $5.60 billion in 2015 to $34.70 billion in 2023, and is currently $30.24 billion as of their latest financial filing in 2025.

How has Microsoft's book value per share changed over the last 10 years?

Over the last 10 years, Microsoft's book value per share changed from 9.90 in 2015 to 46.21 in 2025, a change of 366.8%.

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This page (NASDAQ:MSFT) was last updated on 8/10/2025 by MarketBeat.com Staff

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Microsoft (MSFT) Financials

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Microsoft (MSFT) Financials

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