Microsoft Corporation Financial Ratios — MSFT Stock

Profitability	2010 Y	2011 Y	2012 Y	2013 Y	2014 Y	2015 Y	2016 Y	2017 Y	2018 Y	2019 Y	2020 Y	2021 Y	2022 Y	2023 Y	2024 Y
Return on Common Equity (%)	44.31	45.3	27.83	30.76	27.04	14.9	27.75	32.36	19.27	41.84	40.66	48	46.72	37.71	36.22
Return on Assets (%)	22.88	23.77	14.77	16.58	14.02	7.03	11.16	11.49	6.51	14.39	15.06	19.3	20.82	18.63	19.07
Return on Capital (%)	39.17	38.97	23.67	26.18	22.38	11.47	18.19	18.1	10.32	23.96	25.3	32.12	33.84	29.29	29.5
Return on Invested Capital (%)	36.74	36.7	28.81	24.93	21.31	16.24	18.06	16.38	9.21	21.91	23.48	29.99	32.75	28.64	29.36
Gross Margin (%)	80.16	77.73	76.22	73.81	68.82	64.7	64.04	64.52	65.25	65.9	67.78	68.93	68.4	68.92	69.76
EBITDA Margin (%)	42.84	42.79	41.94	39.2	38.12	36.47	37.09	39.46	41.06	43.42	45.98	48.55	49.35	48.31	53.74
Operating Margin (%)	38.57	38.83	37.92	34.38	32.11	30.1	29.83	30.37	31.77	34.14	37.03	41.59	42.06	41.77	44.64
Incremental Operating Margin (%)	92.29	41.06	21.03	-28.89	12.49	4.24	40.56	39.56	41.53	51.03	58.23	67.63	44.62	37.67	62.97
Pretax Margin (%)	40.03	40.13	30.2	34.75	32.04	19.78	28.13	30.96	33.05	34.72	37.08	42.3	42.22	42.14	43.97
Profit Margin (%)	30.02	33.1	23.03	28.08	25.42	13.03	22.53	26.39	15.02	31.18	30.96	36.45	36.69	34.15	35.96
Net Income to Common Margin (%)	30.02	33.1	23.03	28.08	25.42	13.03	22.53	26.39	15.02	31.18	30.96	36.45	36.69	34.15	35.96
Effective Tax Rate (%)	25	17.53	23.75	19.18	20.65	34.12	19.89	14.76	54.57	10.18	16.51	13.83	13.11	18.98	18.23
Dvd Payout Ratio (%)	24.4	22.38	37.61	34.1	40.22	81.05	53.59	46.47	76.63	35.2	34.18	26.96	24.93	27.36	24.7
Sustainable Growth Rate (%)	33.5	35.17	17.36	20.27	16.16	2.82	12.88	17.32	4.5	27.11	26.76	35.06	35.07	27.39	27.28

Credit	2010 Y	2011 Y	2012 Y	2013 Y	2014 Y	2015 Y	2016 Y	2017 Y	2018 Y	2019 Y	2020 Y	2021 Y	2022 Y	2023 Y	2024 Y
Total Debt	5,939	11,921	11,944	15,600	22,645	35,292	53,461	91,566	81,808	78,366	70,998	67,775	61,270	59,965	67,127
ST Debt	1,000	- -	1,231	2,999	2,000	7,484	12,904	10,121	3,998	5,516	3,749	8,072	2,749	5,247	8,942
LT Debt	4,939	11,921	10,713	12,601	20,645	27,808	40,557	81,445	77,810	72,850	67,249	59,703	58,521	54,718	58,185
Total Debt/EBITDA	0.22	0.4	0.39	0.51	0.68	1.03	1.58	2.4	1.81	1.43	1.08	0.83	0.63	0.59	0.51
Net Debt/EBITDA	0.02	0.08	0.16	0.39	0.42	0.87	1.39	2.06	1.42	1.11	0.76	0.54	0.37	0.12	0.25
Total Debt/EBIT	0.25	0.44	0.43	0.58	0.81	1.25	1.97	3.12	2.33	1.82	1.34	0.97	0.73	0.68	0.61
Net Debt/EBIT	0.02	0.09	0.18	0.44	0.5	1.05	1.73	2.68	1.83	1.42	0.94	0.63	0.43	0.14	0.3
EBITDA to Interest Expense	177.29	101.45	81.38	71.14	55.44	43.7	27.2	17.15	16.58	20.34	25.38	34.78	47.43	52.02	44.88
EBITDA-CapEx/Interest Expense	164.2	93.46	75.31	61.22	46.25	36.09	20.49	13.49	12.33	15.16	19.42	25.99	35.85	37.74	29.73
EBIT to Interest Expense	159.59	92.07	73.57	62.39	46.71	36.07	21.87	13.2	12.83	15.99	20.44	29.8	40.42	44.98	37.29
Interest Expense	151	295	380	429	597	781	1,243	2,222	2,733	2,686	2,591	2,346	2,063	1,968	2,935
Common Equity/Total Assets	52.4	52.51	53.55	54.2	49.93	44.45	36.42	34.79	32.8	35.83	38.21	41.99	46.93	51.6	53.51
Long-Term Debt/Equity (%)	10.7	20.88	16.14	15.96	22.99	34.72	56.33	92.86	94.07	71.19	56.84	42.05	35.14	26.53	21.67
Long-Term Debt/Capital (%)	9.67	17.28	13.93	13.58	18.99	24.64	32.73	45.59	46.67	40.24	36.13	28.71	25.17	20.08	17.05
Long-Term Debt/Total Assets (%)	5.74	10.97	8.83	8.85	11.98	15.94	20.96	32.54	30.06	25.42	22.32	17.89	16.04	13.28	11.36
Total Debt/Equity (%)	12.86	20.88	18	19.76	25.22	44.07	74.25	104.4	98.9	76.58	60.01	47.73	36.79	29.08	25
Total Debt/Capital (%)	11.63	17.28	15.53	16.81	20.83	31.27	43.14	51.25	49.07	43.29	38.15	32.59	26.35	22	19.67
Total Debt/Total Assets (%)	6.9	10.97	9.85	10.95	13.14	20.23	27.63	36.58	31.6	27.35	23.56	20.31	16.79	14.56	13.11
Net Debt to Equity	0.94	4.05	7.54	14.94	15.57	37.08	65.21	89.53	77.73	59.44	42.05	30.93	21.53	6.08	12.41
Net Debt/Capital (%)	0.95	3.89	7.16	13.25	13.97	27.69	39.99	45.93	41.54	35.85	28.83	22.67	16.4	5.27	10.32
EBITDA	26,771	29,927	30,923	30,519	33,098	34,129	33,810	38,109	45,319	54,641	65,755	81,602	97,843	102,384	131,720
EBITDA-CapEx	24,794	27,572	28,618	26,262	27,613	28,185	25,467	29,980	33,687	40,716	50,314	60,980	73,957	74,277	87,243
Operating Income (Loss)	24,098	27,161	27,956	26,764	27,886	28,172	27,188	29,331	35,058	42,959	52,959	69,916	83,383	88,523	109,433

Liquidity	2010 Y	2011 Y	2012 Y	2013 Y	2014 Y	2015 Y	2016 Y	2017 Y	2018 Y	2019 Y	2020 Y	2021 Y	2022 Y	2023 Y	2024 Y
Cash Ratio	1.41	1.83	1.93	2.06	1.88	1.94	1.91	2.39	2.29	1.93	1.89	1.47	1.1	1.07	0.6
Current Ratio	2.13	2.6	2.6	2.71	2.5	2.47	2.35	2.92	2.9	2.53	2.52	2.08	1.78	1.77	1.27
Quick Ratio	1.9	2.35	2.41	2.53	2.31	2.3	2.22	2.79	2.74	2.35	2.33	1.9	1.57	1.54	1.06
CFO/Avg Current Liab	0.91	0.98	1.03	0.82	0.78	0.62	0.61	0.69	0.77	0.82	0.86	0.95	0.97	0.88	1.03
Common Equity/Total Assets	52.4	52.51	53.55	54.2	49.93	44.45	36.42	34.79	32.8	35.83	38.21	41.99	46.93	51.6	53.51
Long-Term Debt/Equity (%)	10.7	20.88	16.14	15.96	22.99	34.72	56.33	92.86	94.07	71.19	56.84	42.05	35.14	26.53	21.67
Long-Term Debt/Capital (%)	9.67	17.28	13.93	13.58	18.99	24.64	32.73	45.59	46.67	40.24	36.13	28.71	25.17	20.08	17.05
Long-Term Debt/Total Assets (%)	5.74	10.97	8.83	8.85	11.98	15.94	20.96	32.54	30.06	25.42	22.32	17.89	16.04	13.28	11.36
Total Debt/Equity (%)	12.86	20.88	18	19.76	25.22	44.07	74.25	104.4	98.9	76.58	60.01	47.73	36.79	29.08	25
Total Debt/Capital (%)	11.63	17.28	15.53	16.81	20.83	31.27	43.14	51.25	49.07	43.29	38.15	32.59	26.35	22	19.67
Total Debt/Total Assets (%)	6.9	10.97	9.85	10.95	13.14	20.23	27.63	36.58	31.6	27.35	23.56	20.31	16.79	14.56	13.11
CFO/Total Liabilities	60.28	52.29	57.6	45.42	39.35	31.43	27.43	24.3	24.92	28.33	33.15	40.01	44.9	42.57	48.65
CFO/CapEx	12.18	11.46	13.72	6.77	5.93	4.99	3.99	4.86	3.77	3.75	3.93	3.72	3.73	3.12	2.67
Altman's Z-Score	4.42	4.16	4.42	4.31	4.1	3.88	3.42	3.5	4.18	4.99	6.87	8.36	8.08	9.6	10.58

Working Capital	2010 Y	2011 Y	2012 Y	2013 Y	2014 Y	2015 Y	2016 Y	2017 Y	2018 Y	2019 Y	2020 Y	2021 Y	2022 Y	2023 Y	2024 Y
Accounts Receivable Turnover	5.16	5	4.79	4.68	4.69	5	5.04	4.74	4.51	4.49	4.65	4.8	4.82	4.56	4.64
Days Sales Outstanding	70.7	73.06	76.16	77.98	77.83	73.04	72.45	76.93	80.88	81.22	78.52	76.06	75.76	80.05	78.63
Inventory Turnover	17.01	14.75	13.97	13.26	11.78	11.88	12.72	15.46	15.84	18.16	23.28	23.06	19.65	21.1	39.57
Days Inventory Outstanding	21.45	24.74	26.12	27.53	30.99	30.72	28.69	23.61	23.05	20.1	15.68	15.83	18.58	17.3	9.22
Accounts Payable Turnover	3.38	3.94	4.13	4.71	4.54	4.75	4.76	4.79	4.85	4.7	4.19	3.83	3.73	3.48	3.63
Accounts Payable Turnover Days	108	92.57	88.34	77.55	80.48	76.9	76.62	76.26	75.22	77.64	87.1	95.41	97.79	104.76	100.42
Cash Conversion Cycle	-15.85	5.23	13.94	27.96	28.33	26.86	24.51	24.27	28.71	23.68	7.1	-3.51	-3.45	-7.42	-12.56
Inventory to Cash Days	49.25	48.32	50.04	50.46	46.84	42.31	43.76	53.32	57.84	61.12	62.85	60.23	57.18	62.75	69.41
Inventories	740	1,372	1,137	1,938	2,660	2,902	2,251	2,181	2,662	2,063	1,895	2,636	3,742	2,500	1,246
Raw Materials	172	232	210	328	944	1,100	612	797	655	399	700	1,190	1,144	709	394
Work In Process	16	56	96	201	266	202	158	145	54	53	83	79	82	23	7
Finished Goods	552	1,084	831	1,409	1,450	1,600	1,481	1,239	1,953	1,611	1,112	1,367	2,516	1,768	845
Other Inventory	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -

Enterprise Value	2010 Y	2011 Y	2012 Y	2013 Y	2014 Y	2015 Y	2016 Y	2017 Y	2018 Y	2019 Y	2020 Y	2021 Y	2022 Y	2023 Y	2024 Y
Market Capitalization	154,051	171,753	205,282	238,352	293,453	314,242	362,806	489,625	709,863	976,543	1,489,505	1,985,389	1,884,794	2,506,473	3,308,653
- Cash & Cash Equivalents	5,505	9,610	6,938	3,804	8,669	5,595	6,510	7,663	11,946	11,356	13,576	14,224	13,931	34,704	18,315
+ Preferred Equity and Hybrid Capital	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -
+ Minority/Non Controlling Interest	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -
+ Total Debt	5,939	11,921	11,944	15,600	22,645	35,292	53,461	91,566	81,808	78,366	70,998	67,775	61,270	59,965	67,127
Enterprise Value	123,202	130,902	154,186	176,930	230,389	253,008	303,028	448,210	657,903	921,090	1,423,976	1,922,908	1,841,315	2,455,182	3,300,249
Total Capital	51,059	69,004	76,885	92,801	108,721	112,853	123,921	178,650	166,713	181,036	186,116	207,941	232,490	272,531	341,194
Total Debt/Capital (%)	11.63	17.28	15.53	16.81	20.83	31.27	43.14	51.25	49.07	43.29	38.15	32.59	26.35	22	19.67
Total Debt / EV	0.05	0.09	0.08	0.09	0.1	0.14	0.18	0.2	0.12	0.09	0.05	0.04	0.03	0.02	0.02
EV/Sales	1.97	1.87	2.09	2.27	2.65	2.7	3.32	4.64	5.96	7.32	9.96	11.44	9.29	11.59	13.46
EV/EBITDA	4.6	4.37	4.99	5.8	6.96	7.41	8.96	11.76	14.52	16.86	21.66	23.56	18.82	23.98	25.06
EV/EBIT	5.11	4.82	5.52	6.61	8.26	8.98	11.15	15.28	18.77	21.44	26.89	27.5	22.08	27.73	30.16
EV/Cash Flow to Firm	5.09	4.81	4.83	6.06	6.99	8.38	8.83	10.83	14.58	16.87	22.66	24.41	20.27	27.53	27.29
EV/Free Cash Flow to Firm	4.71	4.42	4.51	5.29	5.99	7	7.1	9.05	11.59	13.44	18.19	19.35	16.05	20.93	19.95
Diluted Market Cap	156,044	173,836	207,972	241,056	296,989	317,201	366,835	495,061	718,529	986,724	1,503,794	2,001,437	1,895,858	2,515,225	3,325,572
Diluted Enterprise Value	156,478	176,147	212,978	252,852	310,965	346,898	413,786	578,964	788,391	1,053,734	1,561,216	2,054,988	1,943,197	2,540,486	3,374,384
EV per Share	13.98	15.42	18.36	21.13	27.76	30.94	38.24	57.86	85.44	120.04	187.12	254.79	245.64	329.73	444.12
TTM Sales	62,484	69,943	73,723	77,849	86,833	93,580	91,154	96,571	110,360	125,843	143,015	168,088	198,270	211,915	245,122
TTM EBITDA	26,771	29,927	30,923	30,519	33,098	34,129	33,810	38,109	45,319	54,641	65,755	81,602	97,843	102,384	131,720
TTM Operating Income	24,098	27,161	27,956	26,764	27,886	28,172	27,188	29,331	35,058	42,959	52,959	69,916	83,383	88,523	109,433
TTM Cash Flow to Firm	24,186	27,237	31,916	29,180	32,976	30,183	34,321	41,401	45,126	54,598	62,838	78,762	90,827	89,177	120,948
TTM Free Cash Flow to Firm	26,163	29,592	34,221	33,437	38,461	36,127	42,664	49,530	56,758	68,523	78,279	99,384	114,713	117,284	165,425

Multiples		2010 Y	2011 Y	2012 Y	2013 Y	2014 Y	2015 Y	2016 Y	2017 Y	2018 Y

Microsoft Corporation

Profitability

Credit

Liquidity

Working Capital

Enterprise Value

Multiples