MSFT FY 2014 Earnings Report — Microsoft Corporation Revenue & Financial Results | Market Cap Arena

Microsoft CorporationMSFT

FY 2014 Earnings

Reported July 31, 2014

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2014	Prior Q	FY 2013	QoQ Change	YoY Change
Revenue	$86.8B	—	$77.8B	—	11.5%
Op. Income	$27.8B	—	$26.8B	—	3.7%
Gross Margin	68.8%	—	73.8%	—	-5.0pp
Net Margin	25.4%	—	28.1%	—	-2.7pp
EPS (Diluted)	$2.63	—	$2.58	—	1.9%
Free Cash Flow	$27.0B	—	$24.6B	—	9.9%

Revenue Flow

Item	Amount
REVENUE	$86.8B
Cost of Revenue	$27.1B
GROSS PROFIT	$59.8B
R&D Expenses	$11.4B
Selling & Marketing	$15.8B
General & Administrative	$4.7B
SG&A Expenses	$20.5B
Other Expenses	$0
Operating Expenses	$31.9B
Cost & Expenses	$58.9B
OPERATING INCOME	$27.8B
Interest Income	$0
Interest Expense	$597M
Other Income/Expenses	$61M
INCOME BEFORE TAX	$27.8B
Income Tax Expense	$5.7B
Net Income from Continuing Ops	$22.1B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$22.1B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$22.1B
D&A	$5.2B
EBIT	$28.4B
EBITDA	$33.6B
EPS	$3
EPS Diluted	$3

Income Statement

Item	Amount
REVENUE	$86.8B
Cost of Revenue	$27.1B
GROSS PROFIT	$59.8B
R&D Expenses	$11.4B
Selling & Marketing	$15.8B
General & Administrative	$4.7B
SG&A Expenses	$20.5B
Other Expenses	$0
Operating Expenses	$31.9B
Cost & Expenses	$58.9B
OPERATING INCOME	$27.8B
Interest Income	$0
Interest Expense	$597M
Other Income/Expenses	$61M
INCOME BEFORE TAX	$27.8B
Income Tax Expense	$5.7B
Net Income from Continuing Ops	$22.1B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$22.1B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$22.1B
D&A	$5.2B
EBIT	$28.4B
EBITDA	$33.6B
EPS	$3
EPS Diluted	$3

Cash Flow Statement

Item	Amount
Net Income	$22.1B
Depreciation & Amortization	$5.2B
Stock-Based Compensation	$2.4B
Deferred Income Tax	-$331M
Other Non-Cash Items	-$41.8B
Change in Working Capital	$44.9B
OPERATING CASH FLOW	$32.5B
Capital Expenditure	-$5.5B
Acquisitions (Net)	-$5.9B
Purchases of Investments	-$72.7B
Sales/Maturities of Investments	$65.4B
Other Investing Activities	-$87M
NET CASH FROM INVESTING	-$18.8B
Net Debt Issuance	$7.0B
Common Stock Repurchased	-$7.3B
Common Dividends Paid	-$8.9B
Other Financing Activities	-$39M
NET CASH FROM FINANCING	-$8.7B
FREE CASH FLOW	$27.0B
Net Change in Cash	$4.9B

Balance Sheet

Item	Amount
Cash & Equivalents	$8.7B
Short-Term Investments	$77.0B
Net Receivables	$19.5B
Inventory	$2.7B
Other Current Assets	$6.3B
TOTAL CURRENT ASSETS	$114.2B
PP&E (Net)	$13.0B
Goodwill	$20.1B
Intangible Assets	$7.0B
Long-Term Investments	$14.6B
Tax Assets	$0
Other Non-Current Assets	$3.4B
TOTAL NON-CURRENT ASSETS	$58.1B
TOTAL ASSETS	$172.4B
Account Payables	$7.4B
Short-Term Debt	$2.0B
Deferred Revenue	$23.1B
Other Current Liabilities	$11.7B
TOTAL CURRENT LIABILITIES	$45.6B
Long-Term Debt	$20.6B
Deferred Revenue NC	$2.0B
Deferred Tax Liabilities	$2.7B
Other Non-Current Liabilities	$11.6B
TOTAL NON-CURRENT LIABILITIES	$37.0B
TOTAL LIABILITIES	$82.6B
Common Stock	$68.4B
Additional Paid-In Capital	$0
Retained Earnings	$17.7B
Treasury Stock	$0
Accum. Other Comp. Income	$3.7B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$89.8B
Minority Interest	$0
TOTAL EQUITY	$89.8B
TOTAL LIABILITIES & EQUITY	$172.4B
Total Debt	$22.6B
Net Debt	$14.0B