Microsoft Fundamentals
What does the company do?
Microsoft Corporation is engaged in developing, manufacturing, licensing, and supporting a range of software products and services for different types of computing devices. The Company operates in five business segments: Client, Server and Tools, Online Services Business, Microsoft Business Division, and Entertainment and Devices Division. The software products and services include operating systems for servers, personal computers, and intelligent devices; server applications for distributed computing environments; information worker productivity applications; business solutions applications; computing applications; software development tools, and video games. The Company provide consulting and product and solution support services, and trains and certifies computer system integrators and developers. It also designs and sells hardware, including Xbox 360 video game console, the Zune digital music and entertainment device, and peripherals.


How much does the company sell and earn?
Investors need to know how much stuff or services a company sells, and how much of that total it keeps as income (or profit) to grow its business or return to shareholders. The more of each, the better. In general, look for companies that sell and earn more than peers.

  • Microsoft one-year sales: 56.30 Bil.
    Difference from the average for the Application Software group: 67.28%
  • Microsoft one-year income: 13.77 Bil.
    Difference from the average for the Application Software group: 70.24%

    Sales & Income (past 12 months)CompanyIndustry
    Sales56.30 Bil 33.65 Bil 
    Income13.77 Bil 8.09 Bil 


How fast is the company growing?

  • Microsoft one-year sales growth: -14.20%.
    Difference from the average for the Application Software group: -6.20 pct. pts.
  • Microsoft one-year income growth: -18.30%.
    Difference from the average for the Application Software group: -17.20 pct. pts.

    Sales & Income Growth (past 12 months)CompanyIndustry
    Sales Growth -14.20%  -8.00% 
    Income Growth -18.30%  -1.10% 


How profitable is the company?
Investors prefer companies that increase profit margins -- the percentage of sales that they keep -- every year. This is accomplished either by lowering expenses or raising prices. Look for companies that consistently find ways to squeeze more profits out of sales than their peers.

  • Microsoft one-year net profit margin: 24.5%
    Difference from the company's 5-year average net profit margin: -3.5 pct. pts.
    Difference from the average for the Application Software group: 3.2 pct. pts.

    Net profit margins (%)
    Company24.5% 
    Company 5-Yr Avg.28.0% 
    Industry21.2% 


How is the company's financial health?
The debt/equity ratio shows how much a firm has borrowed as a percentage of its stock equity. The lower, the better.

  • Microsoft debt/equity ratio: 0.15.
    Difference from the average for the Application Software group: -42.31%.

     CompanyIndustry
    Debt/equity ratio0.15 0.26 

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