Rating: Strong Buy
Microsoft sub-organizations
Microsoft Financial Health
Profitability:9.12/10
✅ Microsoft has better Profitability than 92.98% of the companies on the Application Software industry
Net Margin: 32.29%
✅ Microsoft has better Net Margin than 94.55% of the companies on the Application Software industry
ROE (Return on Equity): 10.19%
✅ Microsoft has better ROE (Return on Equity) than 81.82% of the companies on the Application Software industry
ROA (Return on Assets): 4.06%
✅ Microsoft has better ROA (Return on Assets) than 92.73% of the companies on the Application Software industry
Operating Efficiency:9.44/10
✅ Microsoft has better Operating Efficiency than 98.18% of the companies on the Application Software industry
Operating Margin: 38.17%
✅ Microsoft has better Operating Margin than 98.18% of the companies on the Application Software industry
Liquidity:8.35/10
✅ Microsoft has better Liquidity than 83.33% of the companies on the Application Software industry
Quick Ratio: 2.49
✅ Microsoft has better Quick Ratio than 73.33% of the companies on the Application Software industry
Operating Cash Flow Ratio: 0.94
✅ Microsoft has better Operating Cash Flow Ratio than 86.67% of the companies on the Application Software industry
Solvency:7.76/10
✅ Microsoft has better Solvency than 65% of the companies on the Application Software industry
Debt to Equity Ratio: 0.58
❌ Microsoft has worst Debt to Equity Ratio than 50.85% of the companies on the Application Software industry
Interest Coverage Ratio: 0.94
✅ Microsoft has better Interest Coverage Ratio than 86.67% of the companies on the Application Software industry
Microsoft investments
Functional employees breakdown
| Engineering | 46.5% |
| Worldwide Commercial Business | 17.7% |
| Global Sales M&O | 15.2% |
| 10.7% | |
| Business Functions | 5.4% |
| Finance, HR & Legal | 4.4% |
Products with higher growth in revenue (YoY)
| Azure | +59% |
| Dynamics 365 | +47% |
| Server products and cloud services | +30% |
| Office 365 Commercial | +25% |
| +21% | |
| Dynamics products and cloud services | +17% |
Highlights from the third quarter of fiscal year 2020 compared with the third quarter of fiscal year 2019
Commercial cloud revenue increased 39% to $13.3 billion.
Office Commercial revenue increased 13%, driven by Office 365 Commercial growth of 25%.
Office Consumer revenue increased 15%, with continued growth in Office 365 Consumer subscribers to 39.6 million.
LinkedIn revenue increased 21%.
Dynamics revenue increased 17%, driven by Dynamics 365 growth of 47%.
Server products and cloud services revenue increased 30%, driven by Azure growth of 59%.
Enterprise Services revenue increased 6%.
Windows original equipment manufacturer licensing (“Windows OEM”) revenue was relatively unchanged.
Windows Commercial revenue increased 17%.
Search advertising revenue, excluding traffic acquisition costs, increased 1%.
Xbox content and services revenue increased 2%.
Surface revenue increased 1%.