Financial Report for Microsoft Corporation (MSFT:NASDAQ)
By: Terry Bingman, Financial Analyst
Company Overview
Microsoft Corporation is a major technology company based in Redmond, Washington. They make popular products like Windows operating systems for computers, Microsoft 365 (a set of tools like Word and Excel), Azure (a cloud service where data is stored online), Edge (an internet browser), Xbox (a video game console), and Surface (touchscreen computers).
- Market Cap: The value of Microsoft as a company, around $3.34 trillion as of June 2024.
- PE ratio: Price-to-Earnings ratio, measuring how much investors are willing to pay per dollar of earnings, at 38.97.
- Dividend Yield: A percentage showing how much a company pays its investors in dividends each year compared to its share price, which is 0.667%.
Stock Performance
As of June 21, 2024:
- Current Price: $449.78 (that's the price of one share of Microsoft on the stock market).
- 52-Week High: $450.94 (the highest price in the past year).
- 52-Week Low: $309.45 (the lowest price in the past year).
- Average Volume: 17,787,478 shares (the average number of shares traded daily).
Stay Focused on This
In the past six months, Microsoft stock price has gone up significantly:
- Jan 2, 2024: $370.87
- Jun 21, 2024: $449.78
Key Event: On January 30, 2024, after excellent Q2 results, the stock price dropped a bit, showing how sensitive the market is to news.
Financial Statements Analysis
Balance Sheet (Quarterly)
- Q3 2024:
- Total Assets: $484.28 billion (the total value of everything Microsoft owns).
- Total Liabilities: $231.12 billion (everything Microsoft owes).
- Total Equity: $253.15 billion (the value left if Microsoft sold everything and paid off all debts).
- Cash and Short-term Investments: $80.01 billion (money they have ready to use).
This means Microsoft is financially strong and can easily make investments or expand.
Income Statement (Quarterly)
- Q3 2024:
- Revenue: $61.86 billion (total money made from sales).
- Operating Expense: $15.77 billion (money spent to run the business).
- Net Income: $21.94 billion (profit after expenses).
- Net Profit Margin: 35.47% (profit as a percentage of revenue, showing efficiency).
- Earnings per Share (EPS): $2.94 (profit per share of stock).
Microsoft is making a lot of money compared to its costs, which is a sign of a profitable business.
Cash Flow Statement (Quarterly)
- Q3 2024:
- Cash from Operations: $31.92 billion (cash generated from business activities).
- Cash from Investing: -$10.70 billion (money spent on investments).
- Cash from Financing: -$18.81 billion (money paid for debts and dividends).
- Net Change in Cash: $2.33 billion (overall increase in cash).
- Free Cash Flow: $16.97 billion (money left after paying for its operations and capital expenditures).
The positive net change in cash shows Microsoft can generate good cash flow, supporting its ability to invest and grow.
Stock Price Prediction
Microsoft's future stock price is expected to keep going up due to:
- Growth in Cloud Services: Azure is leading and expanding, bringing in more revenue.
- Product Innovation: Ongoing development in products like AI and new gadgets.
- Strategic Acquisitions: Buying other companies to enhance its market presence.
- Economic Factors: Global economic conditions and interest rates will influence investor choices.
Conclusion
Microsoft's strong financial health, market position, and strategic growth plans suggest its stock price will likely continue to rise. Investors can be optimistic but should stay updated about market conditions and company news.
Terry Bingman, Financial Analyst
