Stock Analysis on Net
Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Microsoft Corp., adjusted financial ratios

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Activity Ratio
Total Asset Turnover
Reported 0.48 0.51 0.54 0.50 0.47 0.44
Adjusted 0.51 0.55 0.58 0.53 0.49 0.47
Liquidity Ratio
Current Ratio
Reported 1.27 1.77 1.78 2.08 2.52 2.53
Adjusted 2.37 3.47 3.44 3.93 5.03 4.79
Solvency Ratios
Debt to Equity
Reported 0.29 0.31 0.39 0.50 0.62 0.77
Adjusted 0.32 0.33 0.39 0.46 0.54 0.65
Debt to Capital
Reported 0.23 0.24 0.28 0.33 0.38 0.43
Adjusted 0.24 0.25 0.28 0.31 0.35 0.39
Financial Leverage
Reported 1.91 2.00 2.19 2.35 2.55 2.80
Adjusted 1.58 1.63 1.74 1.82 1.94 2.11
Profitability Ratios
Net Profit Margin
Reported 35.96% 34.15% 36.69% 36.45% 30.96% 31.18%
Adjusted 36.07% 32.24% 31.94% 37.37% 34.60% 30.09%
Return on Equity (ROE)
Reported 32.83% 35.09% 43.68% 43.15% 37.43% 38.35%
Adjusted 29.27% 29.08% 31.98% 35.95% 32.99% 29.56%
Return on Assets (ROA)
Reported 17.21% 17.56% 19.94% 18.36% 14.70% 13.69%
Adjusted 18.48% 17.85% 18.38% 19.76% 16.97% 14.03%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Microsoft Corp. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Microsoft Corp. adjusted current ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Microsoft Corp. adjusted debt-to-equity ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Microsoft Corp. adjusted debt-to-capital ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Microsoft Corp. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Microsoft Corp. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Microsoft Corp. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Microsoft Corp. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Microsoft Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Reported
Selected Financial Data (US$ in millions)
Revenue 245,122 211,915 198,270 168,088 143,015 125,843
Total assets 512,163 411,976 364,840 333,779 301,311 286,556
Activity Ratio
Total asset turnover1 0.48 0.51 0.54 0.50 0.47 0.44
Adjusted
Selected Financial Data (US$ in millions)
Adjusted revenue2 251,493 217,320 202,537 173,049 144,989 130,329
Adjusted total assets3 490,723 392,463 351,958 327,349 295,694 279,431
Activity Ratio
Adjusted total asset turnover4 0.51 0.55 0.58 0.53 0.49 0.47

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

1 2024 Calculation
Total asset turnover = Revenue ÷ Total assets
= 245,122 ÷ 512,163 = 0.48

2 Adjusted revenue. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted total asset turnover = Adjusted revenue ÷ Adjusted total assets
= 251,493 ÷ 490,723 = 0.51

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Microsoft Corp. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Current Ratio

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 159,734 184,257 169,684 184,406 181,915 175,552
Current liabilities 125,286 104,149 95,082 88,657 72,310 69,420
Liquidity Ratio
Current ratio1 1.27 1.77 1.78 2.08 2.52 2.53
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 160,564 184,907 170,317 185,157 182,703 175,963
Adjusted current liabilities3 67,704 53,248 49,544 47,132 36,310 36,744
Liquidity Ratio
Adjusted current ratio4 2.37 3.47 3.44 3.93 5.03 4.79

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 159,734 ÷ 125,286 = 1.27

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2024 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 160,564 ÷ 67,704 = 2.37

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Microsoft Corp. adjusted current ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Adjusted Debt to Equity

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 78,775 64,304 64,683 70,687 72,823 78,752
Stockholders’ equity 268,477 206,223 166,542 141,988 118,304 102,330
Solvency Ratio
Debt to equity1 0.29 0.31 0.39 0.50 0.62 0.77
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 97,852 79,441 78,400 82,278 82,110 86,455
Adjusted stockholders’ equity3 309,839 240,956 202,298 179,897 152,071 132,644
Solvency Ratio
Adjusted debt to equity4 0.32 0.33 0.39 0.46 0.54 0.65

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 78,775 ÷ 268,477 = 0.29

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 97,852 ÷ 309,839 = 0.32

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Microsoft Corp. adjusted debt-to-equity ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Debt to Capital

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 78,775 64,304 64,683 70,687 72,823 78,752
Total capital 347,252 270,527 231,225 212,675 191,127 181,082
Solvency Ratio
Debt to capital1 0.23 0.24 0.28 0.33 0.38 0.43
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 97,852 79,441 78,400 82,278 82,110 86,455
Adjusted total capital3 407,691 320,397 280,698 262,175 234,181 219,099
Solvency Ratio
Adjusted debt to capital4 0.24 0.25 0.28 0.31 0.35 0.39

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 78,775 ÷ 347,252 = 0.23

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2024 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 97,852 ÷ 407,691 = 0.24

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Microsoft Corp. adjusted debt-to-capital ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 512,163 411,976 364,840 333,779 301,311 286,556
Stockholders’ equity 268,477 206,223 166,542 141,988 118,304 102,330
Solvency Ratio
Financial leverage1 1.91 2.00 2.19 2.35 2.55 2.80
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 490,723 392,463 351,958 327,349 295,694 279,431
Adjusted stockholders’ equity3 309,839 240,956 202,298 179,897 152,071 132,644
Solvency Ratio
Adjusted financial leverage4 1.58 1.63 1.74 1.82 1.94 2.11

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 512,163 ÷ 268,477 = 1.91

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 490,723 ÷ 309,839 = 1.58

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Microsoft Corp. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

Adjusted Net Profit Margin

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Reported
Selected Financial Data (US$ in millions)
Net income 88,136 72,361 72,738 61,271 44,281 39,240
Revenue 245,122 211,915 198,270 168,088 143,015 125,843
Profitability Ratio
Net profit margin1 35.96% 34.15% 36.69% 36.45% 30.96% 31.18%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 90,702 70,059 64,685 64,671 50,166 39,211
Adjusted revenue3 251,493 217,320 202,537 173,049 144,989 130,329
Profitability Ratio
Adjusted net profit margin4 36.07% 32.24% 31.94% 37.37% 34.60% 30.09%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

1 2024 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 88,136 ÷ 245,122 = 35.96%

2 Adjusted net income. See details »

3 Adjusted revenue. See details »

4 2024 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenue
= 100 × 90,702 ÷ 251,493 = 36.07%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Microsoft Corp. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Reported
Selected Financial Data (US$ in millions)
Net income 88,136 72,361 72,738 61,271 44,281 39,240
Stockholders’ equity 268,477 206,223 166,542 141,988 118,304 102,330
Profitability Ratio
ROE1 32.83% 35.09% 43.68% 43.15% 37.43% 38.35%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 90,702 70,059 64,685 64,671 50,166 39,211
Adjusted stockholders’ equity3 309,839 240,956 202,298 179,897 152,071 132,644
Profitability Ratio
Adjusted ROE4 29.27% 29.08% 31.98% 35.95% 32.99% 29.56%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

1 2024 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 88,136 ÷ 268,477 = 32.83%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 90,702 ÷ 309,839 = 29.27%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Microsoft Corp. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Reported
Selected Financial Data (US$ in millions)
Net income 88,136 72,361 72,738 61,271 44,281 39,240
Total assets 512,163 411,976 364,840 333,779 301,311 286,556
Profitability Ratio
ROA1 17.21% 17.56% 19.94% 18.36% 14.70% 13.69%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 90,702 70,059 64,685 64,671 50,166 39,211
Adjusted total assets3 490,723 392,463 351,958 327,349 295,694 279,431
Profitability Ratio
Adjusted ROA4 18.48% 17.85% 18.38% 19.76% 16.97% 14.03%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 88,136 ÷ 512,163 = 17.21%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 90,702 ÷ 490,723 = 18.48%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Microsoft Corp. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.