Microsoft Income Before Tax vs Operating Income Analysis
MSFT Stock | USD 420.21 0.78 0.19% |
Microsoft financial indicator trend analysis is infinitely more than just investigating Microsoft recent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Microsoft is a good investment. Please check the relationship between Microsoft Income Before Tax and its Operating Income accounts. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Microsoft. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census. For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.
Income Before Tax vs Operating Income
Income Before Tax vs Operating Income Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Microsoft Income Before Tax account and Operating Income. At this time, the significance of the direction appears to have totally related.
The correlation between Microsoft's Income Before Tax and Operating Income is 1.0. Overlapping area represents the amount of variation of Income Before Tax that can explain the historical movement of Operating Income in the same time period over historical financial statements of Microsoft, assuming nothing else is changed. The correlation between historical values of Microsoft's Income Before Tax and Operating Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Income Before Tax of Microsoft are associated (or correlated) with its Operating Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Operating Income has no effect on the direction of Income Before Tax i.e., Microsoft's Income Before Tax and Operating Income go up and down completely randomly.
Correlation Coefficient | 1.0 |
Relationship Direction | Positive |
Relationship Strength | Very Strong |
Income Before Tax
Income Before Tax which can also be referred as pre-tax income is reported on Microsoft income statement and is an important metric when analyzing Microsoft profitability. Accounting techniques because taxes can be complex, and not perfectly consistent from one company to company, an analyst may use pre-tax income as a more stable measure of profitability.Operating Income
Operating Income is the amount of profit realized from Microsoft operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Microsoft is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.Most indicators from Microsoft's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Microsoft current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Microsoft. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census. For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.At this time, Microsoft's Sales General And Administrative To Revenue is comparatively stable compared to the past year. Enterprise Value is likely to gain to about 2 T in 2024, whereas Selling General Administrative is likely to drop slightly above 4.7 B in 2024.
2021 | 2022 | 2023 | 2024 (projected) | Gross Profit | 135.6B | 146.1B | 168.0B | 176.4B | Total Revenue | 198.3B | 211.9B | 243.7B | 255.9B |
Microsoft fundamental ratios Correlations
Click cells to compare fundamentals
Microsoft Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Microsoft fundamental ratios Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Total Assets | 301.3B | 333.8B | 364.8B | 412.0B | 473.8B | 497.5B | |
Short Long Term Debt Total | 71.0B | 67.8B | 61.3B | 60.0B | 69.0B | 72.4B | |
Other Current Liab | 20.0B | 23.9B | 27.8B | 29.9B | 34.4B | 36.1B | |
Total Current Liabilities | 72.3B | 88.7B | 95.1B | 104.1B | 119.8B | 125.8B | |
Total Stockholder Equity | 118.3B | 142.0B | 166.5B | 206.2B | 237.2B | 249.0B | |
Property Plant And Equipment Net | 44.2B | 70.8B | 87.5B | 110.0B | 126.5B | 132.8B | |
Net Debt | 57.4B | 53.6B | 47.3B | 25.3B | 29.1B | 30.5B | |
Retained Earnings | 34.6B | 57.1B | 84.3B | 118.8B | 136.7B | 143.5B | |
Cash | 13.6B | 14.2B | 13.9B | 34.7B | 39.9B | 41.9B | |
Non Current Assets Total | 119.4B | 149.4B | 195.2B | 227.7B | 261.9B | 275.0B | |
Non Currrent Assets Other | 13.1B | 15.1B | 21.9B | 30.6B | 35.2B | 37.0B | |
Cash And Short Term Investments | 136.5B | 130.3B | 104.8B | 111.3B | 128.0B | 134.3B | |
Net Receivables | 32.0B | 38.0B | 44.3B | 48.7B | 56.0B | 58.8B | |
Common Stock Shares Outstanding | 7.7B | 7.6B | 7.5B | 7.5B | 6.7B | 7.2B | |
Liabilities And Stockholders Equity | 301.3B | 333.8B | 364.8B | 412.0B | 473.8B | 497.5B | |
Non Current Liabilities Total | 110.7B | 103.1B | 103.2B | 101.6B | 116.8B | 122.7B | |
Inventory | 1.9B | 2.6B | 3.7B | 2.5B | 2.9B | 3.0B | |
Other Current Assets | 11.5B | 13.4B | 16.9B | 21.8B | 25.1B | 26.3B | |
Other Stockholder Equity | 3.2B | 1.8B | (4.7B) | (6.3B) | (5.7B) | (5.4B) | |
Total Liab | 183.0B | 191.8B | 198.3B | 205.8B | 236.6B | 248.4B | |
Property Plant And Equipment Gross | 96.1B | 122.2B | 147.2B | 178.2B | 205.0B | 215.2B | |
Total Current Assets | 181.9B | 184.4B | 169.7B | 184.3B | 211.9B | 222.5B | |
Accumulated Other Comprehensive Income | 3.2B | 1.8B | (4.7B) | (6.3B) | (7.3B) | (6.9B) | |
Cash And Equivalents | 13.6B | 14.2B | 13.9B | 34.7B | 39.9B | 41.9B | |
Property Plant Equipment | 44.2B | 70.8B | 87.5B | 110.0B | 126.5B | 132.8B | |
Short Term Debt | 3.7B | 8.1B | 2.7B | 5.2B | 6.0B | 3.6B | |
Intangible Assets | 7.0B | 7.8B | 11.3B | 9.4B | 10.8B | 11.3B | |
Accounts Payable | 12.5B | 15.2B | 19B | 18.1B | 20.8B | 21.8B | |
Common Stock | 80.6B | 83.1B | 86.9B | 93.7B | 107.8B | 61.9B | |
Common Stock Total Equity | 78.5B | 80.6B | 83.1B | 86.9B | 100.0B | 65.5B | |
Short Term Investments | 123.0B | 116.1B | 90.8B | 76.6B | 88.0B | 68.3B | |
Other Assets | 13.1B | 15.1B | 21.9B | 30.6B | 35.2B | 37.0B | |
Current Deferred Revenue | 36B | 41.5B | 45.5B | 50.9B | 58.5B | 61.5B | |
Other Liab | 35.7B | 34.5B | 30.0B | 44.7B | 51.4B | 54.0B | |
Good Will | 43.4B | 49.7B | 67.5B | 67.9B | 78.1B | 82.0B | |
Long Term Debt | 59.6B | 50.1B | 47.0B | 42.0B | 48.3B | 37.6B | |
Long Term Debt Total | 67.2B | 59.7B | 58.5B | 54.7B | 62.9B | 44.0B | |
Net Tangible Assets | 67.9B | 84.5B | 87.7B | 129.0B | 148.3B | 155.7B | |
Retained Earnings Total Equity | 24.2B | 34.6B | 57.1B | 84.3B | 96.9B | 101.8B | |
Deferred Long Term Liab | 233M | 204M | 198M | 230M | 207M | 196.7M |
Pair Trading with Microsoft
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 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 will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Microsoft 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 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 - 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 to buy it.
The correlation of Microsoft 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 moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microsoft 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 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.Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Microsoft. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census. 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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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.
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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 0.2 | Dividend Share 2.93 | Earnings Share 11.56 | Revenue Per Share 31.834 | Quarterly Revenue Growth 0.17 |
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.