Microsoft delivered a resilient QQ4 2024 performance with a revenue base of $64.73 billion, marking a year-over-year growth of 15.2% and a quarter-over-quarter increase of 4.6%. The company generated strong profitability, with gross margins of 69.6% and an operating margin of 43.1%, culminating in net income of $22.04 billion and earnings per diluted share of $2.95–$2.96. Free cash flow reached $23.32 billion, supported by operating cash flow of $37.20 billion and a cash balance position of $18.32 billion, alongside substantial liquidity from total cash and short-term investments of $75.53 billion. The balance sheet remains robust (total assets $512.16B; total equity $268.48B; net debt about $48.81B) and capital allocation remains accretive, with ongoing share repurchases and dividend payments.
Key Performance Indicators
Revenue
Increasing
64.73B
QoQ: 4.64% | YoY: 15.20%
Gross Profit
Increasing
45.04B
69.59% margin
QoQ: 3.90% | YoY: 14.34%
Operating Income
Increasing
27.93B
QoQ: 1.25% | YoY: 15.14%
Net Income
Increasing
22.04B
QoQ: 0.44% | YoY: 9.74%
EPS
Increasing
2.96
QoQ: 0.34% | YoY: 9.63%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $64.73B (+15.20% YoY; +4.64% QoQ). Gross Profit: $45.04B (+14.34% YoY; +3.90% QoQ). Operating Income: $27.93B (+15.14% YoY; +1.25% QoQ). Net Income: $22.04B (+9.74% YoY; +0.44% QoQ). EPS (diluted): $2.95–$2.96 (+9.63% YoY; +0.34% QoQ). Margins: Gross 69.6%; Operating 43.1%; Net 34.0%. Cash Flow: Operating CF $37.20B; Free Cash Flow $23.32B. Liquidity: Cash and ST investments $75.53B; Cash at period end $18.32B. Balance Sheet: Total assets $512.16B; Total liabilities $243.69B; Total stockholders’ equity $268.48B. Leverage: Net debt $48.81B; Interest coverage ~39.8x. Return metrics: ROE 8.21%; ROA 4.30%; ROCE 7.22%.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
64.73B
15.20%
4.64%
Gross Profit
45.04B
14.34%
3.90%
Operating Income
27.93B
15.14%
1.25%
Net Income
22.04B
9.74%
0.44%
EPS
2.96
9.63%
0.34%
Key Financial Ratios
Gross Profit Margin
Excellent
69.60%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
43.10%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
34.00%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
4.30%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
8.21%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.28
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Conservative
0.25
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Value
2.03x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Undervalued
0.67x
Trading below book value, potential value opportunity or distressed
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