Microsoft Corporation
Microsoft Corporation demonstrates strong business quality, growth, and profitability, underpinned by consistent revenue and profit growth. While financial strength is moderate, capital allocation and intrinsic value analysis suggest a robust, well-managed company. However, a low current ratio and recent decline in free cash flow warrant close monitoring.
Business Performance (CAGR)
Valuation Snapshot
Financial Health
Profitability Metrics
Cash Flow Intelligence
Intrinsic Value
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AI Business Verdict
Microsoft Corporation exhibits strong fundamentals with exceptional profitability and robust growth across key financial metrics. While its short-term liquidity (current ratio) and a recent dip in free cash flow require close attention, its overall financial health, high capital allocation efficiency, and a margin of safety on intrinsic value suggest a compelling long-term value creation story for shareholders. The company's strong market position and ability to generate significant profit and cash flow position it well for future expansion.
- Exceptional profitability with high Net Margin (36.15%) and Operating Margin (43.88%).
- Robust growth in revenue (CAGR 13.36%), PAT (CAGR 22.17%), and EPS (CAGR 23.13%).
- Strong Return on Equity (29.65%) and Return on Capital Employed (31.98%).
- Healthy Operating Cash Flow to PAT conversion (133.7%).
Balance Sheet
Microsoft Corporation has an adequate but tight balance sheet — leverage and liquidity warrant monitoring.
Capacity to fund growth, withstand downturns and return capital.
- Microsoft Corporation has an adequate but tight balance sheet — leverage and liquidity warrant monitoring.
- Very low leverage with net cash balance
- Strong shareholder equity growth
- Tight short-term liquidity cushion
- Long working capital cycle
- Large 'other assets' bucket — investigate composition