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Microsoft Corp
NASDAQ:MSFT

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Microsoft Corp Logo
Microsoft Corp
NASDAQ:MSFT
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Price: 407.99 USD 0.1% Market Closed
Updated: Apr 24, 2024

Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Microsoft Corp

Revenue
227.6B USD
Cost of Revenue
-68.8B USD
Gross Profit
158.7B USD
Operating Expenses
-58.2B USD
Operating Income
100.5B USD
Other Expenses
-18B USD
Net Income
82.5B USD

Margins Comparison
Microsoft Corp Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
US
Microsoft Corp
NASDAQ:MSFT
3T USD
70%
44%
36%
US
Oracle Corp
NYSE:ORCL
315.1B USD
72%
30%
20%
US
ServiceNow Inc
NYSE:NOW
152.2B USD
79%
8%
19%
US
Palo Alto Networks Inc
NASDAQ:PANW
94.8B USD
74%
10%
30%
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
72.1B USD
75%
0%
3%
US
VMware Inc
NYSE:VMW
61.5B USD
81%
14%
10%
US
Fortinet Inc
NASDAQ:FTNT
49.9B USD
77%
23%
22%
US
Zscaler Inc
NASDAQ:ZS
26.6B USD
77%
-10%
-7%
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
18.1B USD
88%
37%
35%
US
NortonLifeLock Inc
NASDAQ:NLOK
14.5B USD
82%
39%
40%
US
Gen Digital Inc
NASDAQ:GEN
13.1B USD
81%
30%
37%
Country US
Market Cap 3T USD
Gross Margin
70%
Operating Margin
44%
Net Margin
36%
Country US
Market Cap 315.1B USD
Gross Margin
72%
Operating Margin
30%
Net Margin
20%
Country US
Market Cap 152.2B USD
Gross Margin
79%
Operating Margin
8%
Net Margin
19%
Country US
Market Cap 94.8B USD
Gross Margin
74%
Operating Margin
10%
Net Margin
30%
Country US
Market Cap 72.1B USD
Gross Margin
75%
Operating Margin
0%
Net Margin
3%
Country US
Market Cap 61.5B USD
Gross Margin
81%
Operating Margin
14%
Net Margin
10%
Country US
Market Cap 49.9B USD
Gross Margin
77%
Operating Margin
23%
Net Margin
22%
Country US
Market Cap 26.6B USD
Gross Margin
77%
Operating Margin
-10%
Net Margin
-7%
Country IL
Market Cap 18.1B USD
Gross Margin
88%
Operating Margin
37%
Net Margin
35%
Country US
Market Cap 14.5B USD
Gross Margin
82%
Operating Margin
39%
Net Margin
40%
Country US
Market Cap 13.1B USD
Gross Margin
81%
Operating Margin
30%
Net Margin
37%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Microsoft Corp Competitors

Country Company Market Cap ROE ROA ROCE ROIC
US
Microsoft Corp
NASDAQ:MSFT
3T USD
39%
20%
32%
26%
US
Oracle Corp
NYSE:ORCL
315.1B USD
665%
8%
14%
12%
US
ServiceNow Inc
NYSE:NOW
152.2B USD
27%
11%
9%
12%
US
Palo Alto Networks Inc
NASDAQ:PANW
94.8B USD
90%
14%
10%
17%
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
72.1B USD
5%
2%
0%
0%
US
VMware Inc
NYSE:VMW
61.5B USD
106%
5%
10%
6%
US
Fortinet Inc
NASDAQ:FTNT
49.9B USD
-308%
17%
37%
26%
US
Zscaler Inc
NASDAQ:ZS
26.6B USD
-19%
-4%
-9%
-19%
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
18.1B USD
29%
15%
23%
20%
US
NortonLifeLock Inc
NASDAQ:NLOK
14.5B USD
61%
8%
10%
14%
US
Gen Digital Inc
NASDAQ:GEN
13.1B USD
68%
9%
8%
25%
Country US
Market Cap 3T USD
ROE
39%
ROA
20%
ROCE
32%
ROIC
26%
Country US
Market Cap 315.1B USD
ROE
665%
ROA
8%
ROCE
14%
ROIC
12%
Country US
Market Cap 152.2B USD
ROE
27%
ROA
11%
ROCE
9%
ROIC
12%
Country US
Market Cap 94.8B USD
ROE
90%
ROA
14%
ROCE
10%
ROIC
17%
Country US
Market Cap 72.1B USD
ROE
5%
ROA
2%
ROCE
0%
ROIC
0%
Country US
Market Cap 61.5B USD
ROE
106%
ROA
5%
ROCE
10%
ROIC
6%
Country US
Market Cap 49.9B USD
ROE
-308%
ROA
17%
ROCE
37%
ROIC
26%
Country US
Market Cap 26.6B USD
ROE
-19%
ROA
-4%
ROCE
-9%
ROIC
-19%
Country IL
Market Cap 18.1B USD
ROE
29%
ROA
15%
ROCE
23%
ROIC
20%
Country US
Market Cap 14.5B USD
ROE
61%
ROA
8%
ROCE
10%
ROIC
14%
Country US
Market Cap 13.1B USD
ROE
68%
ROA
9%
ROCE
8%
ROIC
25%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

See Also

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