Microsoft Corp Cash Flow From Operations vs. Revenue
| MSFT Stock | 32.06 0.28 0.88% |
For Microsoft Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Microsoft Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Microsoft Corp CDR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Microsoft Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Microsoft Corp CDR over time as well as its relative position and ranking within its peers.
Microsoft |
Microsoft Corp CDR Revenue vs. Cash Flow From Operations Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Microsoft Corp's current stock value. Our valuation model uses many indicators to compare Microsoft Corp value to that of its competitors to determine the firm's financial worth. Microsoft Corp CDR is considered to be number one stock in cash flow from operations category among its peers. It also is rated top company in revenue category among its peers totaling about 2.07 of Revenue per Cash Flow From Operations. At present, Microsoft Corp's Total Revenue is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Microsoft Corp's earnings, one of the primary drivers of an investment's value.Microsoft Revenue vs. Cash Flow From Operations
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.
Microsoft Corp |
| = | 118.55 B |
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Microsoft Corp |
| = | 245.12 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Microsoft Revenue vs Competition
Microsoft Corp CDR is rated top company in revenue category among its peers. Market size based on revenue of Information Technology industry is now estimated at about 245.24 Billion. Microsoft Corp totals roughly 245.12 Billion in revenue claiming about 100% of equities under Information Technology industry.
Microsoft Corp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Microsoft Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Microsoft Corp will eventually generate negative long term returns. The profitability progress is the general direction of Microsoft Corp's change in net profit over the period of time. It can combine multiple indicators of Microsoft Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Net Interest Income | 222 M | 233.1 M | |
| Operating Income | 109.4 B | 75.8 B | |
| Net Income From Continuing Ops | 88.1 B | 62 B | |
| Income Before Tax | 107.8 B | 76.2 B | |
| Total Other Income Expense Net | -1.9 B | -1.8 B | |
| Net Income Applicable To Common Shares | 83.6 B | 51.5 B | |
| Net Income | 88.1 B | 62 B | |
| Income Tax Expense | 9.9 B | 8.6 B | |
| Interest Income | 3.2 B | 2.9 B | |
| Change To Netincome | 1.4 B | 1.5 B |
Microsoft Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Microsoft Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Microsoft Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Microsoft Corp's important profitability drivers and their relationship over time.
Use Microsoft Corp in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Microsoft Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Microsoft Corp will appreciate offsetting losses from the drop in the long position's value.Microsoft Corp Pair Trading
Microsoft Corp CDR Pair Trading Analysis
The ability to find closely correlated positions to Microsoft Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microsoft Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Microsoft Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Microsoft Corp CDR to buy it.
The correlation of Microsoft Corp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Microsoft Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microsoft Corp CDR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Microsoft Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Microsoft Corp position
In addition to having Microsoft Corp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Business Services Thematic Idea Now
Business Services
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Services theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Business Services Theme or any other thematic opportunities.
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Other Information on Investing in Microsoft Stock
To fully project Microsoft Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Microsoft Corp CDR at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Microsoft Corp's income statement, its balance sheet, and the statement of cash flows.