Microsoft Corp Financials
Microsoft Corp (MSFT) reported $331.8B in revenue for fiscal year 2026, up 17.8% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Microsoft's current engine is scale-funded infrastructure expansion: profit and cash are rising, but capital spending is absorbing more of each revenue dollar.
From FY2024 to FY2026, operating cash flow jumped from$118.5B to$182.9B and net margin reached40.3% , yet free cash flow margin fell from30.2% to20.2% because capital expenditures climbed from$44.5B to$115.9B . That combination says the business is not short on cash generation; it is deliberately recycling much more of that cash back into its asset base.
The balance sheet is becoming less debt-dependent even during this spending wave: long-term debt fell to
The recent asset build looks built more than bought: goodwill barely moved over FY2024-FY2026, ending at
Financial Health Signals
Scored against operating companies for FY2026. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Microsoft Corp's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Microsoft Corp has an operating margin of 46.8%, meaning the company retains $47 of operating profit per $100 of revenue. This strong profitability earns a score of 98/100, reflecting efficient cost management and pricing power. This is up from 45.6% the prior year.
Microsoft Corp's revenue surged 17.8% year-over-year to $331.8B, reflecting rapid business expansion. This strong growth earns a score of 78/100.
Microsoft Corp carries a low D/E ratio of 0.07, meaning only $0.07 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 84/100, indicating a strong balance sheet with room for future borrowing.
Microsoft Corp's current ratio of 1.23 indicates adequate short-term liquidity, earning a score of 30/100. The company can meet its near-term obligations, though with limited headroom.
Microsoft Corp converts 20.2% of revenue into free cash flow ($67.0B). This strong cash generation earns a score of 90/100.
Microsoft Corp earns a strong 30.2% return on equity (ROE), meaning it generates $30 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 96/100. This is up from 29.6% the prior year.
Microsoft Corp scores 8.71, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($3.7T) relative to total liabilities ($316.0B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Microsoft Corp passes 6 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 2 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Microsoft Corp generates $1.37 in operating cash flow ($182.9B OCF vs $133.7B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Microsoft Corp earns $50.88 in operating income for every $1 of interest expense ($155.2B vs $3.1B). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Microsoft Corp generated $331.8B in revenue in fiscal year 2026. This represents an increase of 17.8% from the prior year.
Microsoft Corp's EBITDA was $199.6B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 24.8% from the prior year.
Microsoft Corp reported $133.7B in net income in fiscal year 2026. This represents an increase of 31.3% from the prior year.
Microsoft Corp earned $17.95 per diluted share (EPS) in fiscal year 2026. This represents an increase of 31.6% from the prior year.
Cash & Balance Sheet
Microsoft Corp generated $67.0B in free cash flow in fiscal year 2026, representing cash available after capex. This represents a decrease of 6.5% from the prior year.
Microsoft Corp held $20.9B in cash against $31.1B in long-term debt as of fiscal year 2026.
Microsoft Corp paid $3.64 per share in dividends in fiscal year 2026. This represents an increase of 9.6% from the prior year.
Margins & Returns
Microsoft Corp's gross margin was 67.9% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is down 0.9 percentage points from the prior year.
Microsoft Corp's operating margin was 46.8% in fiscal year 2026, reflecting core business profitability. This is up 1.2 percentage points from the prior year.
Microsoft Corp's net profit margin was 40.3% in fiscal year 2026, showing the share of revenue converted to profit. This is up 4.2 percentage points from the prior year.
Microsoft Corp's ROE was 30.2% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is up 0.6 percentage points from the prior year.
Capital Allocation
Microsoft Corp invested $35.6B in research and development in fiscal year 2026. This represents an increase of 9.5% from the prior year.
Microsoft Corp spent $22.3B on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 20.9% from the prior year.
Microsoft Corp invested $115.9B in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents an increase of 79.6% from the prior year.
MSFT Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $331.8B+17.8% | $281.7B+14.9% | $245.1B+15.7% | $211.9B+6.9% | $198.3B+18.0% | $168.1B+17.5% | $143.0B+13.6% | $125.8B+14.0% | $110.4B+14.3% | $96.6B+5.9% | $91.2B-2.6% | $93.6B+7.8% | $86.8B+11.5% | $77.8B+5.6% | $73.7B |
| Cost of Revenue | $106.4B+21.1% | $87.8B+18.5% | $74.1B+12.5% | $65.9B+5.1% | $62.6B+19.9% | $52.2B+13.4% | $46.1B+7.4% | $42.9B+11.9% | $38.4B+11.9% | $34.3B+4.5% | $32.8B-0.8% | $33.0B+22.0% | $27.1B+32.8% | $20.4B+16.3% | $17.5B |
| Gross Profit | $225.5B+16.3% | $193.9B+13.4% | $171.0B+17.1% | $146.1B+7.7% | $135.6B+17.1% | $115.9B+19.5% | $96.9B+16.9% | $82.9B+15.2% | $72.0B+15.6% | $62.3B+6.7% | $58.4B-3.6% | $60.5B+1.3% | $59.8B+4.0% | $57.5B+2.3% | $56.2B |
| R&D Expenses | $35.6B+9.5% | $32.5B+10.1% | $29.5B+8.5% | $27.2B+10.9% | $24.5B+18.3% | $20.7B+7.5% | $19.3B+14.2% | $16.9B+14.6% | $14.7B+13.0% | $13.0B+8.8% | $12.0B-0.5% | $12.0B+5.8% | $11.4B+9.3% | $10.4B+6.1% | $9.8B |
| SG&A Expenses | $8.0B+10.1% | $7.2B-5.1% | $7.6B+0.4% | $7.6B+28.4% | $5.9B+15.5% | $5.1B-0.1% | $5.1B+4.6% | $4.9B+2.8% | $4.8B+6.1% | $4.5B-1.8% | $4.6B-1.0% | $4.6B-1.4% | $4.7B-6.7% | $5.0B+9.7% | $4.6B |
| Operating Income | $155.2B+20.8% | $128.5B+17.4% | $109.4B+23.6% | $88.5B+6.2% | $83.4B+19.3% | $69.9B+32.0% | $53.0B+23.3% | $43.0B+22.5% | $35.1B+20.8% | $29.0B+11.3% | $26.1B+43.6% | $18.2B-34.6% | $27.8B+3.7% | $26.8B+23.0% | $21.8B |
| Interest Expense | $3.1B+27.9% | $2.4B-18.7% | $2.9B+49.1% | $2.0B-4.6% | $2.1B-12.1% | $2.3B-9.5% | $2.6B-3.5% | $2.7B-1.7% | $2.7B+23.0% | $2.2B+78.8% | $1.2B+59.2% | $781.0M+30.8% | $597.0M+39.2% | $429.0M+12.9% | $380.0M |
| Income Tax | $32.2B+47.7% | $21.8B+10.9% | $19.7B+15.9% | $16.9B+54.4% | $11.0B+11.7% | $9.8B+12.3% | $8.8B+96.8% | $4.4B-77.7% | $19.9B+351.1% | $4.4B-13.5% | $5.1B-19.2% | $6.3B+9.9% | $5.7B+10.7% | $5.2B-1.9% | $5.3B |
| Net Income | $133.7B+31.3% | $101.8B+15.5% | $88.1B+21.8% | $72.4B-0.5% | $72.7B+18.7% | $61.3B+38.4% | $44.3B+12.8% | $39.2B+136.8% | $16.6B-35.0% | $25.5B+24.1% | $20.5B+68.4% | $12.2B-44.8% | $22.1B+1.0% | $21.9B+28.8% | $17.0B |
| EPS (Diluted) | $17.95+31.6% | $13.64+15.6% | $11.80+21.9% | $9.68+0.3% | $9.65+19.9% | $8.05+39.8% | $5.76+13.8% | $5.06+137.6% | $2.13-34.5% | $3.25+27.0% | $2.56+73.0% | $1.48-43.7% | $2.63+1.9% | $2.58+29.0% | $2.00 |
MSFT Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $758.4B+22.5% | $619.0B+20.9% | $512.2B+24.3% | $412.0B+12.9% | $364.8B+9.3% | $333.8B+10.8% | $301.3B+5.1% | $286.6B+10.7% | $258.8B+3.4% | $250.3B+29.4% | $193.5B+10.9% | $174.5B+1.2% | $172.4B+21.0% | $142.4B+17.4% | $121.3B |
| Current Assets | $207.7B+8.7% | $191.1B+19.7% | $159.7B-13.3% | $184.3B+8.6% | $169.7B-8.0% | $184.4B+1.4% | $181.9B+3.6% | $175.6B+3.5% | $169.7B+4.3% | $162.7B+16.5% | $139.7B+13.7% | $122.8B+7.5% | $114.2B+12.6% | $101.5B+19.3% | $85.1B |
| Cash & Equivalents | $20.9B-30.8% | $30.2B+65.1% | $18.3B-47.2% | $34.7B+149.1% | $13.9B-2.1% | $14.2B+4.8% | $13.6B+19.5% | $11.4B-4.9% | $11.9B+55.9% | $7.7B+17.7% | $6.5B+16.4% | $5.6B-35.5% | $8.7B+127.9% | $3.8B-45.2% | $6.9B |
| Inventory | $1.4B+48.9% | $938.0M-24.7% | $1.2B-50.2% | $2.5B-33.2% | $3.7B+42.0% | $2.6B+39.1% | $1.9B-8.1% | $2.1B-22.5% | $2.7B+22.1% | $2.2B-3.1% | $2.3B-22.4% | $2.9B+9.1% | $2.7B+37.3% | $1.9B+70.4% | $1.1B |
| Accounts Receivable | $80.9B+15.7% | $69.9B+22.8% | $56.9B+16.9% | $48.7B+10.0% | $44.3B+16.3% | $38.0B+18.8% | $32.0B+8.4% | $29.5B+11.5% | $26.5B+18.1% | $22.4B+22.7% | $18.3B+2.1% | $17.9B-8.4% | $19.5B+11.8% | $17.5B+10.8% | $15.8B |
| Goodwill | $119.7B+0.1% | $119.5B+0.2% | $119.2B+75.6% | $67.9B+0.5% | $67.5B+35.8% | $49.7B+14.7% | $43.4B+3.2% | $42.0B+17.8% | $35.7B+1.6% | $35.1B+96.5% | $17.9B+5.5% | $16.9B-15.8% | $20.1B+37.3% | $14.7B+8.9% | $13.5B |
| Total Liabilities | $316.0B+14.7% | $275.5B+13.1% | $243.7B+18.4% | $205.8B+3.8% | $198.3B+3.4% | $191.8B+4.8% | $183.0B-0.7% | $184.2B+4.6% | $176.1B+8.3% | $162.6B+33.9% | $121.5B+28.7% | $94.4B+14.3% | $82.6B+30.1% | $63.5B+15.6% | $54.9B |
| Current Liabilities | $168.8B+19.5% | $141.2B+12.7% | $125.3B+20.3% | $104.1B+9.5% | $95.1B+7.2% | $88.7B+22.6% | $72.3B+4.2% | $69.4B+18.7% | $58.5B+4.9% | $55.7B-6.1% | $59.4B+19.6% | $49.6B+8.8% | $45.6B+21.9% | $37.4B+14.5% | $32.7B |
| Long-Term Debt | $31.1B-22.6% | $40.2B-5.9% | $42.7B+1.7% | $42.0B-10.7% | $47.0B-6.1% | $50.1B-16.0% | $59.6B-10.6% | $66.7B-7.7% | $72.2B-5.0% | $76.1B+87.6% | $40.6B+45.8% | $27.8B+34.7% | $20.6B+63.8% | $12.6B+17.6% | $10.7B |
| Total Equity | $442.4B+28.8% | $343.5B+27.9% | $268.5B+30.2% | $206.2B+23.8% | $166.5B+17.3% | $142.0B+20.0% | $118.3B+15.6% | $102.3B+23.7% | $82.7B-5.7% | $87.7B+5.6% | $83.1B+3.8% | $80.1B-10.8% | $89.8B+13.7% | $78.9B+19.0% | $66.4B |
| Retained Earnings | $328.3B+38.1% | $237.7B+37.3% | $173.1B+45.7% | $118.8B+41.0% | $84.3B+47.7% | $57.1B+65.1% | $34.6B+43.1% | $24.1B+76.5% | $13.7B-23.0% | $17.8B+678.7% | $2.3B-74.9% | $9.1B-48.6% | $17.7B+79.0% | $9.9B+1256.0% | -$856.0M |
MSFT Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $182.9B+34.4% | $136.2B+14.9% | $118.5B+35.4% | $87.6B-1.6% | $89.0B+16.0% | $76.7B+26.5% | $60.7B+16.3% | $52.2B+18.9% | $43.9B+11.1% | $39.5B+18.6% | $33.3B+12.3% | $29.7B-8.7% | $32.5B+12.7% | $28.8B-8.8% | $31.6B |
| Capital Expenditures | $115.9B+79.6% | $64.6B+45.1% | $44.5B+58.2% | $28.1B+17.7% | $23.9B+15.8% | $20.6B+33.6% | $15.4B+10.9% | $13.9B+19.7% | $11.6B+43.1% | $8.1B-2.6% | $8.3B+40.4% | $5.9B+8.4% | $5.5B+28.8% | $4.3B+84.7% | $2.3B |
| Free Cash Flow | $67.0B-6.5% | $71.6B-3.3% | $74.1B+24.5% | $59.5B-8.7% | $65.1B+16.1% | $56.1B+24.1% | $45.2B+18.2% | $38.3B+18.6% | $32.3B+2.8% | $31.4B+25.6% | $25.0B+5.3% | $23.7B-12.2% | $27.0B+9.9% | $24.6B-16.2% | $29.3B |
| Investing Cash Flow | -$139.5B-92.2% | -$72.6B+25.1% | -$97.0B-327.6% | -$22.7B+25.2% | -$30.3B-9.9% | -$27.6B-125.6% | -$12.2B+22.5% | -$15.8B-160.2% | -$6.1B+87.0% | -$46.8B-95.3% | -$23.9B | N/A | N/A | -$23.8B+3.9% | -$24.8B |
| Financing Cash Flow | -$52.5B-1.6% | -$51.7B-36.9% | -$37.8B+14.1% | -$43.9B+25.4% | -$58.9B-21.4% | -$48.5B-5.3% | -$46.0B-24.8% | -$36.9B-9.8% | -$33.6B-499.5% | $8.4B+200.2% | -$8.4B | N/A | N/A | -$8.1B+13.4% | -$9.4B |
| Dividends Paid | $26.4B+9.8% | $24.1B+10.6% | $21.8B+10.0% | $19.8B+9.2% | $18.1B+9.8% | $16.5B+9.1% | $15.1B+9.6% | $13.8B+8.8% | $12.7B+7.2% | $11.8B+7.6% | $11.0B+11.4% | $9.9B+11.3% | $8.9B+19.1% | $7.5B+16.8% | $6.4B |
| Share Buybacks | $22.3B+20.9% | $18.4B+6.8% | $17.3B-22.4% | $22.2B-32.0% | $32.7B+19.4% | $27.4B+19.2% | $23.0B+17.5% | $19.5B+82.3% | $10.7B-9.1% | $11.8B-26.2% | $16.0B+10.6% | $14.4B+97.4% | $7.3B+36.5% | $5.4B+6.6% | $5.0B |
MSFT Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 67.9%-0.9pp | 68.8%-0.9pp | 69.8%+0.8pp | 68.9%+0.5pp | 68.4%-0.5pp | 68.9%+1.2pp | 67.8%+1.9pp | 65.9%+0.7pp | 65.3%+0.7pp | 64.5%+0.5pp | 64.0%-0.7pp | 64.7%-4.1pp | 68.8%-5.0pp | 73.8%-2.4pp | 76.2% |
| Operating Margin | 46.8%+1.2pp | 45.6%+1.0pp | 44.6%+2.9pp | 41.8%-0.3pp | 42.1%+0.5pp | 41.6%+4.6pp | 37.0%+2.9pp | 34.1%+2.4pp | 31.8%+1.7pp | 30.1%+1.4pp | 28.6%+9.2pp | 19.4%-12.6pp | 32.0%-2.4pp | 34.4%+4.9pp | 29.5% |
| Net Margin | 40.3%+4.2pp | 36.1%+0.2pp | 36.0%+1.8pp | 34.2%-2.5pp | 36.7%+0.2pp | 36.4%+5.5pp | 31.0%-0.2pp | 31.2%+16.2pp | 15.0%-11.4pp | 26.4%+3.9pp | 22.5%+9.5pp | 13.0%-12.4pp | 25.4%-2.7pp | 28.1%+5.0pp | 23.0% |
| Return on Equity | 30.2%+0.6pp | 29.6%-3.2pp | 32.8%-2.3pp | 35.1%-8.6pp | 43.7%+0.5pp | 43.1%+5.7pp | 37.4%-0.9pp | 38.4%+18.3pp | 20.0%-9.0pp | 29.1%+4.3pp | 24.7%+9.5pp | 15.2%-9.4pp | 24.6%-3.1pp | 27.7%+2.1pp | 25.6% |
| Return on Assets | 17.6%+1.2pp | 16.4%-0.8pp | 17.2%-0.4pp | 17.6%-2.4pp | 19.9%+1.6pp | 18.4%+3.7pp | 14.7%+1.0pp | 13.7%+7.3pp | 6.4%-3.8pp | 10.2%-0.4pp | 10.6%+3.6pp | 7.0%-5.8pp | 12.8%-2.5pp | 15.3%+1.3pp | 14.0% |
| Current Ratio | 1.23-0.1x | 1.35+0.1x | 1.27-0.5x | 1.770.0x | 1.78-0.3x | 2.08-0.4x | 2.520.0x | 2.53-0.4x | 2.900.0x | 2.92+0.6x | 2.35-0.1x | 2.470.0x | 2.50-0.2x | 2.71+0.1x | 2.60 |
| Debt-to-Equity | 0.070.0x | 0.120.0x | 0.160.0x | 0.20-0.1x | 0.28-0.1x | 0.35-0.2x | 0.50-0.1x | 0.65-0.2x | 0.870.0x | 0.87+0.4x | 0.49+0.1x | 0.35+0.1x | 0.23+0.1x | 0.160.0x | 0.16 |
| FCF Margin | 20.2%-5.2pp | 25.4%-4.8pp | 30.2%+2.2pp | 28.1%-4.8pp | 32.9%-0.5pp | 33.4%+1.8pp | 31.6%+1.2pp | 30.4%+1.2pp | 29.2%-3.3pp | 32.5%+5.1pp | 27.4%+2.1pp | 25.4%-5.8pp | 31.1%-0.5pp | 31.6%-8.2pp | 39.8% |
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Where Microsoft Corp Ranks
Frequently Asked Questions
What is Microsoft Corp's annual revenue?
Microsoft Corp (MSFT) reported $331.8B in total revenue for fiscal year 2026. This represents a 17.8% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Microsoft Corp's revenue growing?
Microsoft Corp (MSFT) revenue grew by 17.8% year-over-year, from $281.7B to $331.8B in fiscal year 2026.
Is Microsoft Corp profitable?
Yes, Microsoft Corp (MSFT) reported a net income of $133.7B in fiscal year 2026, with a net profit margin of 40.3%.
What is Microsoft Corp's EBITDA?
Microsoft Corp (MSFT) had EBITDA of $199.6B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Microsoft Corp have?
As of fiscal year 2026, Microsoft Corp (MSFT) had $20.9B in cash and equivalents against $31.1B in long-term debt.
What is Microsoft Corp's gross margin?
Microsoft Corp (MSFT) had a gross margin of 67.9% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Microsoft Corp's operating margin?
Microsoft Corp (MSFT) had an operating margin of 46.8% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Microsoft Corp's net profit margin?
Microsoft Corp (MSFT) had a net profit margin of 40.3% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
Does Microsoft Corp pay dividends?
Yes, Microsoft Corp (MSFT) paid $3.64 per share in dividends during fiscal year 2026.
What is Microsoft Corp's return on equity (ROE)?
Microsoft Corp (MSFT) has a return on equity of 30.2% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Microsoft Corp's free cash flow?
Microsoft Corp (MSFT) generated $67.0B in free cash flow during fiscal year 2026. This represents a -6.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Microsoft Corp's operating cash flow?
Microsoft Corp (MSFT) generated $182.9B in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are Microsoft Corp's total assets?
Microsoft Corp (MSFT) had $758.4B in total assets as of fiscal year 2026, including both current and long-term assets.
What are Microsoft Corp's capital expenditures?
Microsoft Corp (MSFT) invested $115.9B in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
How much does Microsoft Corp spend on research and development?
Microsoft Corp (MSFT) invested $35.6B in research and development during fiscal year 2026.
What is Microsoft Corp's current ratio?
Microsoft Corp (MSFT) had a current ratio of 1.23 as of fiscal year 2026, which is considered adequate.
What is Microsoft Corp's debt-to-equity ratio?
Microsoft Corp (MSFT) had a debt-to-equity ratio of 0.07 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Microsoft Corp's return on assets (ROA)?
Microsoft Corp (MSFT) had a return on assets of 17.6% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Microsoft Corp's Altman Z-Score?
Microsoft Corp (MSFT) has an Altman Z-Score of 8.71, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Microsoft Corp's Piotroski F-Score?
Microsoft Corp (MSFT) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Microsoft Corp's earnings high quality?
Microsoft Corp (MSFT) has an earnings quality ratio of 1.37x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Microsoft Corp cover its interest payments?
Microsoft Corp (MSFT) has an interest coverage ratio of 50.88x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Microsoft Corp?
Microsoft Corp (MSFT) scores 79 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.