About Microsoft Corporation
Microsoft Corporation (MSFT) is a Technology company in the Services-Prepackaged Software industry with a market capitalisation of $3.7T. The stock trades at 27.87x trailing earnings and yields 0.73%.
- Sector
- Technology
- Industry
- Services-Prepackaged Software
- Market cap
- $3.7T
- P/E ratio
- 27.87
- EPS (TTM)
- $17.95
- Revenue (TTM)
- $331.8B
- Free cash flow
- $67B
- Profit margin
- 40.3%
- Dividend yield
- 0.73%
- Shares outstanding
- 7.4B
Financial health: Strong9.5/10
9 strengths, 0 concerns. No red flags against these benchmarks.
- Debt to equity: 0.09 (Strong, benchmark < 0.5) — Debt of 0.09x equity is conservative against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 0.0y (Strong, benchmark < 4 years) — Holds more cash than debt ($36.5B net cash).
- Current ratio: 1.23 (Watch, benchmark > 1.5) — Short-term assets cover 1.23x short-term liabilities, against Graham's 1.5x floor. It has deteriorated over the last 4 years.
- Return on equity: 30.2% (Strong, benchmark > 15%) — Earns 30.2% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 67.9% (Strong, benchmark > 40%) — Keeps 67.9% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 40.3% (Strong, benchmark > 10%) — Turns 40.3% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $67.0B (Strong, benchmark positive) — Generated $67.0B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 17.8% (Strong, benchmark > 10%) — Revenue changed 17.8% year on year, comfortably past the > 10% mark.
- Earnings growth: 31.3% (Strong, benchmark > 10%) — Earnings changed 31.3% year on year, comfortably past the > 10% mark.
- Payout ratio: 19.8% (Strong, benchmark < 60%) — Pays out 19.8% of earnings as dividends, leaving room to keep paying.