Microsoft Stock Retained Earnings
| MSFT Stock | USD 409.06 1.49 0.37% |
Microsoft fundamentals help investors to digest information that contributes to Microsoft's financial success or failures. It also enables traders to predict the movement of Microsoft Stock. The fundamental analysis module provides a way to measure Microsoft's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Microsoft stock.
| Last Reported | Projected for Next Year | ||
| Retained Earnings | 136.7 B | 143.5 B | |
| Retained Earnings Total Equity | 96.9 B | 101.8 B |
Microsoft | Retained Earnings |
Microsoft Company Retained Earnings Analysis
Microsoft's Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
More About Retained Earnings | All Equity Analysis
Retained Earnings | = | Beginning RE + Income | - | Dividends |
Current Microsoft Retained Earnings | 118.85 B |
Most of Microsoft's fundamental indicators, such as Retained Earnings, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Microsoft is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Microsoft Retained Earnings Driver Correlations
Understanding the fundamental principles of building solid financial models for Microsoft is extremely important. It helps to project a fair market value of Microsoft Stock properly, considering its historical fundamentals such as Retained Earnings. Since Microsoft's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Microsoft's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Microsoft's interrelated accounts and indicators.
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Microsoft Retained Earnings Historical Pattern
Today, most investors in Microsoft Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Microsoft's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's retained earnings growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Microsoft retained earnings as a starting point in their analysis.
Microsoft Retained Earnings |
| Timeline |
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.
| Competition |
Based on the latest financial disclosure, Microsoft has a Retained Earnings of 118.85 B. This is 251.55% higher than that of the Software sector and significantly higher than that of the Information Technology industry. The retained earnings for all United States stocks is significantly lower than that of the firm.
Microsoft Retained Earnings Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Microsoft's direct or indirect competition against its Retained Earnings to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Microsoft could also be used in its relative valuation, which is a method of valuing Microsoft by comparing valuation metrics of similar companies.Microsoft is currently under evaluation in retained earnings category among related companies.
Microsoft ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Microsoft's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Microsoft's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Microsoft Fundamentals
| Return On Equity | 0.39 | ||||
| Return On Asset | 0.15 | ||||
| Profit Margin | 0.36 % | ||||
| Operating Margin | 0.44 % | ||||
| Current Valuation | 3.06 T | ||||
| Shares Outstanding | 7.43 B | ||||
| Shares Owned By Insiders | 0.05 % | ||||
| Shares Owned By Institutions | 73.78 % | ||||
| Number Of Shares Shorted | 55.77 M | ||||
| Price To Earning | 26.64 X | ||||
| Price To Book | 12.45 X | ||||
| Price To Sales | 13.03 X | ||||
| Revenue | 211.91 B | ||||
| Gross Profit | 135.62 B | ||||
| EBITDA | 105.16 B | ||||
| Net Income | 72.36 B | ||||
| Cash And Equivalents | 34.7 B | ||||
| Cash Per Share | 14.39 X | ||||
| Total Debt | 59.97 B | ||||
| Debt To Equity | 0.44 % | ||||
| Current Ratio | 1.84 X | ||||
| Book Value Per Share | 32.06 X | ||||
| Cash Flow From Operations | 87.58 B | ||||
| Short Ratio | 2.60 X | ||||
| Earnings Per Share | 11.05 X | ||||
| Price To Earnings To Growth | 2.02 X | ||||
| Target Price | 433.88 | ||||
| Number Of Employees | 221 K | ||||
| Beta | 0.88 | ||||
| Market Capitalization | 3.03 T | ||||
| Total Asset | 411.98 B | ||||
| Retained Earnings | 118.85 B | ||||
| Working Capital | 80.11 B | ||||
| Current Asset | 139.66 B | ||||
| Current Liabilities | 59.36 B | ||||
| Annual Yield | 0.01 % | ||||
| Five Year Return | 1.18 % | ||||
| Net Asset | 411.98 B | ||||
| Last Dividend Paid | 2.86 |
About Microsoft Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Microsoft's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Microsoft using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Microsoft based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Try AI Portfolio ArchitectCheck out Microsoft Piotroski F Score and Microsoft Altman Z Score analysis. For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.Note that the Microsoft information on this page should be used as a complementary analysis to other Microsoft's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Complementary Tools for Microsoft Stock analysis
When running Microsoft's price analysis, check to measure Microsoft's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Microsoft is operating at the current time. Most of Microsoft's value examination focuses on studying past and present price action to predict the probability of Microsoft's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Microsoft's price. Additionally, you may evaluate how the addition of Microsoft to your portfolios can decrease your overall portfolio volatility.
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |
Is Microsoft's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Microsoft. If investors know Microsoft will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Microsoft listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.332 | Dividend Share 2.86 | Earnings Share 11.05 | Revenue Per Share 30.612 | Quarterly Revenue Growth 0.176 |
The market value of Microsoft is measured differently than its book value, which is the value of Microsoft that is recorded on the company's balance sheet. Investors also form their own opinion of Microsoft's value that differs from its market value or its book value, called intrinsic value, which is Microsoft's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Microsoft's market value can be influenced by many factors that don't directly affect Microsoft's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Microsoft's value and its price as these two are different measures arrived at by different means. Investors typically determine if Microsoft is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Microsoft's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.