Revenue Analysis
Total and Operating Revenue: MSFT’s operating revenue has shown slight fluctuations throughout the given periods. From 2023-06-30, revenue increased from $56.17 billion to $56.19 billion in 2023-09-30, followed by consistent increases up to $62.02 billion in 2023-12-31, then peaking at $61.86 billion in 2024-03-31. This shows a general trend of revenue growth.
Gross Profit Margins: Gross profit consistently increased from $39.39 billion in 2023-06-30 to $43.39 billion in 2023-12-31, indicating improved efficiency or pricing power. The gross profit margin percentage, calculated as gross profit divided by total revenue, has generally remained steady, highlighting effective cost management relative to sales.
Cost Management
Cost of Revenue: Costs of revenue have fluctuated, with an increase from $16.30 billion in 2023-09-30 to $19.62 billion in 2023-12-31, reflecting changes in the cost structure or volume of goods sold.
Operating Expense and Total Expenses: Operating expenses have also increased from $13.32 billion in 2023-09-30 to $15.77 billion in 2024-03-31. Total expenses followed a similar trend, increasing from $29.62 billion in 2023-09-30 to $34.28 billion in 2024-03-31, which may reflect increases in various operational activities or expansion.
Profitability Analysis
EBITDA and Operating Income: EBITDA and operating income have seen general increases. EBITDA progressed from $28.98 billion in 2023-06-30 to $33.75 billion in 2024-03-31. Likewise, operating income rose from $22.35 billion to $27.58 billion over the same period, reflecting growth in operational efficiency and profitability.
Pretax Income and Net Income: Pretax income increased from $22.67 billion to $26.73 billion from 2023-03-31 to 2024-03-31. Similarly, Net income increased from $18.30 billion in 2023-06-30 to $21.94 billion in 2024-03-31, highlighting effective tax management and operational improvements.
Cash Flow Indicators
Reconciled Depreciation and Interest Expense: Reconciled depreciation expenses have increased from $3.54 billion in 2023-03-31 to $6.03 billion in 2024-03-31, indicating capital asset investments. Interest expense went up from $482 million in 2023-06-30 to $800 million in 2024-03-31, potentially due to increased borrowing.
Taxation
Tax Rate, Tax Provision, and Tax Effect Of Unusual Items: The tax rate remained relatively stable around 0.18 to 0.19. Tax provisions rose from $4.38 billion in 2023-03-31 to $4.79 billion in 2024-03-31, aligning with the increase in pretax income. The tax effect of unusual items consistently reflected minor adjustments to tax expenses.
Shareholder Metrics
Diluted and Basic EPS, Average Shares, and Net Income Available to Common Stockholders: Both diluted and basic EPS have shown improvement, aligning with net income growth. Average shares remained stable around 7.46 billion across the periods, ensuring return consistency per share.
Conclusion
MSFT has demonstrated solid financial performance across the board with growing revenues, controlled costs, and increasing profitability. Margins have remained strong, and a steady rise in shareholder returns is evident through EPS growth. Given these trends, MSFT appears well-positioned for continued financial health.