Microsoft Corp (MSFT) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 10, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-K for FY2026, filed Jul 29, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the MSFT SEC filings page.
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).
Profits are scaling, but heavier infrastructure reinvestment is absorbing more operating cash than before.
FY2026 operating cash flow climbed to$182.9B while free cash flow fell to$67.0B , showing that accounting earnings remain highly cash-generative before reinvestment. Capital spending reached$115.9B , nearly twice FY2025's level, so expansion is consuming a larger share of internally generated cash.
Revenue rose from
Debt-to-equity is just 0.1x while the current ratio is 1.2x, combining low reliance on borrowing with a slimmer short-term cushion than earlier years. The balance sheet is therefore financed more by accumulated equity than debt, even as liquidity flexibility has narrowed.
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 9.32, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($4.0T) 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 $90.0B in revenue in Q4 2026. This represents an increase of 17.7% from the same quarter a year earlier. Against the prior quarter it is up 8.6%.
Microsoft Corp's EBITDA was $53.4B in Q4 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 23.5% from the same quarter a year earlier. Against the prior quarter it is up 6.9%.
Microsoft Corp reported $35.8B in net income in Q4 2026. This represents an increase of 31.3% from the same quarter a year earlier. Against the prior quarter it is up 12.5%.
Microsoft Corp earned $4.81 per diluted share (EPS) in Q4 2026. This represents an increase of 31.8% from the same quarter a year earlier. Against the prior quarter it is up 12.6%.
Cash & Balance Sheet
Microsoft Corp generated $19.6B in free cash flow in Q4 2026, representing cash available after capex. This represents a decrease of 23.2% from the same quarter a year earlier. Against the prior quarter it is up 24.3%.
Microsoft Corp held $20.9B in cash against $31.1B in long-term debt as of Q4 2026.
Microsoft Corp paid $0.91 per share in dividends in Q4 2026. This represents an increase of 9.6% from the same quarter a year earlier. It is unchanged from the prior quarter.
Margins & Returns
Microsoft Corp's gross margin was 67.2% in Q4 2026, indicating the percentage of revenue retained after direct costs. This is down 1.4 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.4 percentage points.
Microsoft Corp's operating margin was 45.1% in Q4 2026, reflecting core business profitability. This is up 0.2 percentage points from the same quarter a year earlier. Against the prior quarter it is down 1.2 percentage points.
Microsoft Corp's net profit margin was 39.7% in Q4 2026, showing the share of revenue converted to profit. This is up 4.1 percentage points from the same quarter a year earlier. Against the prior quarter it is up 1.4 percentage points.
Microsoft Corp's ROE was 8.1% in Q4 2026, measuring profit generated per dollar of shareholder equity. This is up 0.2 percentage points from the same quarter a year earlier. Against the prior quarter it is up 0.4 percentage points.
Capital Allocation
Microsoft Corp invested $10.0B in research and development in Q4 2026. This represents an increase of 13.2% from the same quarter a year earlier. Against the prior quarter it is up 12.1%.
Microsoft Corp spent $4.6B on share buybacks in Q4 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 0.7% from the same quarter a year earlier. Against the prior quarter it is down 1.0%.
Microsoft Corp invested $35.8B in capex in Q4 2026, funding long-term assets and infrastructure. This represents an increase of 109.6% from the same quarter a year earlier. Against the prior quarter it is up 16.0%.
MSFT Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q4'2610-K | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $90.0B+17.7% | $82.9B+18.3% | $81.3B+16.7% | $77.7B+18.4% | $76.4B+18.1% | $70.1B+13.3% | $69.6B+12.3% | $65.6B+16.0% |
| Cost of Revenue | $29.5B+22.9% | $26.8B+22.4% | $26.0B+19.2% | $24.0B+19.6% | $24.0B+22.0% | $21.9B+18.4% | $21.8B+11.1% | $20.1B+23.3% |
| Gross Profit | $60.5B+15.4% | $56.1B+16.4% | $55.3B+15.6% | $53.6B+17.9% | $52.4B+16.4% | $48.1B+11.1% | $47.8B+12.8% | $45.5B+13.1% |
| R&D Expenses | $10.0B+13.2% | $8.9B+8.7% | $8.5B+7.4% | $8.1B+8.0% | $8.8B+9.6% | $8.2B+7.1% | $7.9B+10.9% | $7.5B+13.3% |
| SG&A Expenses | $2.3B+14.9% | $1.9B+11.2% | $1.9B+6.0% | $1.8B+7.9% | $2.0B-11.4% | $1.7B-9.2% | $1.8B-7.8% | $1.7B+13.5% |
| Operating Income | $40.6B+18.3% | $38.4B+20.0% | $38.3B+20.9% | $38.0B+24.3% | $34.3B+22.9% | $32.0B+16.0% | $31.7B+17.1% | $30.6B+13.6% |
| EBITDA | $53.4B+23.5% | $49.9B+24.1% | $48.7B+24.2% | $47.7B+27.8% | $43.2B | $40.2B | $39.2B | $37.3B |
| Interest Expense | $839.0M+36.4% | $778.0M+31.0% | $736.0M+23.9% | $698.0M+19.9% | $615.0M-12.3% | $594.0M-25.8% | $594.0M-34.7% | $582.0M+10.9% |
| Income Tax | $8.3B+53.8% | $7.6B+36.2% | $9.8B+86.2% | $6.6B+17.0% | $5.4B+3.2% | $5.6B+16.0% | $5.3B+12.9% | $5.6B+12.2% |
| Net Income | $35.8B+31.3% | $31.8B+23.1% | $38.5B+59.5% | $27.7B+12.5% | $27.2B+23.6% | $25.8B+17.7% | $24.1B+10.2% | $24.7B+10.7% |
| EPS (Basic) | $4.81+31.1% | $4.28+23.3% | $5.18+59.9% | $3.73+12.3% | $3.67+24.0% | $3.47+17.6% | $3.24+10.2% | $3.32+10.7% |
| EPS (Diluted) | $4.81+31.8% | $4.27+23.4% | $5.16+59.8% | $3.72+12.7% | $3.65+23.7% | $3.46+17.7% | $3.23+10.2% | $3.30+10.4% |
| Diluted Shares (Avg) | N/A | 7.45B-0.2% | 7.46B-0.1% | 7.47B-0.1% | N/A | 7.46B-0.1% | 7.47B0.0% | 7.47B+0.1% |
MSFT Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q4'2610-K | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $758.4B+22.5% | $694.2B+23.4% | $665.3B+24.6% | $636.4B+21.7% | $619.0B+20.9% | $562.6B+16.2% | $533.9B+13.5% | $523.0B+17.3% |
| Current Assets | $207.7B+8.7% | $175.3B+11.9% | $180.2B+22.5% | $189.1B+26.1% | $191.1B+19.7% | $156.6B+6.4% | $147.1B-0.2% | $149.9B-27.8% |
| Cash & Equivalents | $20.9B-30.8% | $32.1B+11.4% | $24.3B+39.0% | $28.8B+38.4% | $30.2B+65.1% | $28.8B+46.8% | $17.5B+1.0% | $20.8B-74.1% |
| Short-Term Investments | $55.9B-13.1% | $46.2B-9.1% | $65.2B+20.5% | $73.2B+27.0% | $64.3B+12.4% | $50.8B-15.9% | $54.1B-15.1% | $57.6B-9.3% |
| Inventory | $1.4B+48.9% | $1.2B+43.8% | $1.1B+16.5% | $1.1B-30.5% | $938.0M-24.7% | $848.0M-35.0% | $909.0M-43.7% | $1.6B-45.8% |
| Accounts Receivable | $80.9B+15.7% | $60.0B+16.1% | $56.5B+17.3% | $52.9B+19.8% | $69.9B+22.8% | $51.7B+17.4% | $48.2B+12.5% | $44.1B+19.5% |
| Long-Term Investments | $36.3B+135.9% | $33.7B+110.1% | $21.2B+36.1% | $11.5B-27.3% | $15.4B+5.5% | $16.0B+8.3% | $15.6B+16.6% | $15.8B+38.1% |
| Goodwill | $119.7B+0.1% | $119.7B+0.3% | $119.6B+0.4% | $119.5B+0.1% | $119.5B+0.2% | $119.3B+0.1% | $119.2B+0.2% | $119.4B+76.1% |
| Total Liabilities | $316.0B+14.7% | $279.9B+16.3% | $274.4B+18.7% | $273.3B+16.1% | $275.5B+13.1% | $240.7B+4.2% | $231.2B-0.5% | $235.3B+4.5% |
| Current Liabilities | $168.8B+19.5% | $136.7B+19.7% | $130.0B+19.4% | $135.0B+17.2% | $141.2B+12.7% | $114.2B-3.6% | $108.9B-10.0% | $115.2B-7.7% |
| Non-Current Liabilities | $147.2B+9.6% | $143.2B+13.2% | $144.4B+18.1% | $138.3B+15.1% | $134.3B+13.4% | $126.5B+12.4% | $122.3B+9.9% | $120.1B+19.8% |
| Long-Term Debt | $31.1B-22.6% | $31.4B-21.2% | $35.4B-10.8% | $35.4B-17.5% | $40.2B-5.9% | $39.9B-6.5% | $39.7B-11.6% | $42.9B+2.2% |
| Total Equity | $442.4B+28.8% | $414.4B+28.7% | $390.9B+29.1% | $363.1B+26.2% | $343.5B+27.9% | $321.9B+27.2% | $302.7B+27.0% | $287.7B+30.4% |
| Retained Earnings | $328.3B+38.1% | $302.5B+37.7% | $280.8B+38.0% | $254.9B+34.9% | $237.7B+37.3% | $219.8B+37.9% | $203.5B+39.6% | $188.9B+43.0% |
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. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q4'2610-K | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $55.4B+30.0% | $46.7B+26.0% | $35.8B+60.4% | $45.1B+31.8% | $42.6B+14.7% | $37.0B+16.1% | $22.3B+18.2% | $34.2B+11.8% |
| Depreciation & Amortization | $12.8B+46.3% | $11.5B+40.3% | $10.4B+37.8% | $9.8B+43.8% | $8.8B | $8.2B | $7.5B | $6.8B |
| Stock-Based Compensation | N/A | $3.1B+3.4% | $3.2B+4.2% | $3.0B+5.3% | N/A | $3.0B+10.2% | $3.1B+9.2% | $2.8B+13.0% |
| Capital Expenditures | $35.8B+109.6% | $30.9B+84.4% | $29.9B+89.0% | $19.4B+30.0% | $17.1B+23.1% | $16.7B+52.9% | $15.8B+62.3% | $14.9B+50.5% |
| Free Cash Flow | $19.6B-23.2% | $15.8B-22.1% | $5.9B-9.3% | $25.7B+33.3% | $25.6B+9.6% | $20.3B-3.2% | $6.5B-28.9% | $19.3B-6.8% |
| Investing Cash Flow | -$54.8B-79.4% | -$27.4B-115.5% | -$22.7B-60.9% | -$34.6B-127.3% | -$30.6B-105.9% | -$12.7B-18.8% | -$14.1B+80.4% | -$15.2B-3122.1% |
| Financing Cash Flow | -$11.8B-8.6% | -$11.4B+12.9% | -$17.6B-56.7% | -$11.8B+28.8% | -$10.8B+54.0% | -$13.0B+30.7% | -$11.2B-10.8% | -$16.6B-212.3% |
| Dividends Paid | $6.8B+9.5% | $6.8B+9.5% | $6.8B+9.6% | $6.2B+10.7% | $6.2B+10.7% | $6.2B+10.7% | $6.2B+10.7% | $5.6B+10.4% |
| Share Buybacks | $4.6B+0.7% | $4.6B-3.2% | $7.4B+48.7% | $5.7B+37.6% | $4.5B+8.0% | $4.8B+13.5% | $5.0B+24.6% | $4.1B-15.0% |
MSFT Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q4'2610-K | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 67.2%-1.4pp | 67.6%-1.1pp | 68.0%-0.6pp | 69.0%-0.3pp | 68.6%-1.0pp | 68.7%-1.4pp | 68.7%+0.3pp | 69.3%-1.8pp |
| Operating Margin | 45.1%+0.2pp | 46.3%+0.7pp | 47.1%+1.6pp | 48.9%+2.3pp | 44.9%+1.8pp | 45.7%+1.1pp | 45.5%+1.9pp | 46.6%-1.0pp |
| Net Margin | 39.7%+4.1pp | 38.3%+1.5pp | 47.3%+12.7pp | 35.7%-1.9pp | 35.6%+1.6pp | 36.9%+1.4pp | 34.6%-0.6pp | 37.6%-1.8pp |
| Return on Equity | 8.1%+0.2pp | 7.7%-0.3pp | 9.8%+1.9pp | 7.6%-0.9pp | 7.9%-0.3pp | 8.0%-0.7pp | 8.0%-1.2pp | 8.6%-1.5pp |
| Return on Assets | 4.7%+0.3pp | 4.6%0.0pp | 5.8%+1.3pp | 4.4%-0.4pp | 4.4%+0.1pp | 4.6%+0.1pp | 4.5%-0.1pp | 4.7%-0.3pp |
| Current Ratio | 1.23-0.1x | 1.28-0.1x | 1.390.0x | 1.40+0.1x | 1.35+0.1x | 1.37+0.1x | 1.35+0.1x | 1.30-0.4x |
| Debt-to-Equity | 0.070.0x | 0.080.0x | 0.090.0x | 0.10-0.1x | 0.120.0x | 0.120.0x | 0.13-0.1x | 0.150.0x |
| Asset Turnover | 0.120.0x | 0.120.0x | 0.120.0x | 0.120.0x | 0.120.0x | 0.120.0x | 0.130.0x | 0.130.0x |
| FCF Margin | 21.8%-11.6pp | 19.1%-9.9pp | 7.2%-2.1pp | 33.0%+3.7pp | 33.5%-2.6pp | 29.0%-4.9pp | 9.3%-5.4pp | 29.4%-7.2pp |
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Microsoft Corp MSFT | FY2026 | $331.8B | $133.7B | 40.3% | $4.0T | 79/100 |
| Oracle Corp ORCL | FY2026 | $67.4B | $17.0B | 25.2% | $428.7B | 48/100 |
| Palantir Technologies Inc. PLTR | FY2025 | $4.5B | $1.6B | 36.3% | $502.4B | 79/100 |
| Block, Inc. XYZ | FY2025 | $24.2B | $1.3B | 5.4% | $46.4B | 51/100 |
| MongoDB, Inc. MDB | FY2026 | $2.5B | -$71.2M | -2.9% | $31.1B | 63/100 |
| NetApp, Inc NTAP | FY2026 | $6.2B | $1.3B | 20.5% | $46.6B | 72/100 |
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 P/E ratio?
Microsoft Corp (MSFT) trades at 29.7x earnings, its market capitalization divided by net income of $133.7B net income, FY2026. The market capitalization is $4.0T as of Oct 10, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Microsoft Corp's price-to-sales ratio?
Microsoft Corp (MSFT) trades at 12.0x sales, its market capitalization divided by revenue of $331.8B revenue, FY2026. The market capitalization is $4.0T as of Oct 10, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Microsoft Corp's Altman Z-Score?
Microsoft Corp (MSFT) has an Altman Z-Score of 9.32, 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.