MSFT FY 2015 Earnings Report — Microsoft Corporation Revenue & Financial Results | Market Cap Arena

Microsoft CorporationMSFT

FY 2015 Earnings

Reported July 31, 2015

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2015	Prior Q	FY 2014	QoQ Change	YoY Change
Revenue	$93.6B	—	$86.8B	—	7.8%
Op. Income	$18.2B	—	$27.8B	—	-34.6%
Gross Margin	64.7%	—	68.8%	—	-4.1pp
Net Margin	13.0%	—	25.4%	—	-12.4pp
EPS (Diluted)	$1.48	—	$2.63	—	-43.7%
Free Cash Flow	$23.7B	—	$27.0B	—	-12.2%

Revenue Flow

Item	Amount
REVENUE	$93.6B
Cost of Revenue	$33.0B
GROSS PROFIT	$60.5B
R&D Expenses	$12.0B
Selling & Marketing	$15.7B
General & Administrative	$4.6B
SG&A Expenses	$20.3B
Other Expenses	$10.0B
Operating Expenses	$42.4B
Cost & Expenses	$75.4B
OPERATING INCOME	$18.2B
Interest Income	$0
Interest Expense	$781M
Other Income/Expenses	$346M
INCOME BEFORE TAX	$18.5B
Income Tax Expense	$6.3B
Net Income from Continuing Ops	$12.2B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$12.2B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$12.2B
D&A	$6.0B
EBIT	$19.3B
EBITDA	$25.2B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$93.6B
Cost of Revenue	$33.0B
GROSS PROFIT	$60.5B
R&D Expenses	$12.0B
Selling & Marketing	$15.7B
General & Administrative	$4.6B
SG&A Expenses	$20.3B
Other Expenses	$10.0B
Operating Expenses	$42.4B
Cost & Expenses	$75.4B
OPERATING INCOME	$18.2B
Interest Income	$0
Interest Expense	$781M
Other Income/Expenses	$346M
INCOME BEFORE TAX	$18.5B
Income Tax Expense	$6.3B
Net Income from Continuing Ops	$12.2B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$12.2B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$12.2B
D&A	$6.0B
EBIT	$19.3B
EBITDA	$25.2B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$12.2B
Depreciation & Amortization	$6.0B
Stock-Based Compensation	$2.6B
Deferred Income Tax	$224M
Other Non-Cash Items	-$37.9B
Change in Working Capital	$46.6B
OPERATING CASH FLOW	$29.7B
Capital Expenditure	-$5.9B
Acquisitions (Net)	-$3.7B
Purchases of Investments	-$98.7B
Sales/Maturities of Investments	$85.9B
Other Investing Activities	-$466M
NET CASH FROM INVESTING	-$23.0B
Net Debt Issuance	$13.7B
Common Stock Repurchased	-$14.4B
Common Dividends Paid	-$9.9B
Other Financing Activities	$362M
NET CASH FROM FINANCING	-$9.7B
FREE CASH FLOW	$23.7B
Net Change in Cash	-$3.1B

Balance Sheet

Item	Amount
Cash & Equivalents	$5.6B
Short-Term Investments	$90.9B
Net Receivables	$17.9B
Inventory	$2.9B
Other Current Assets	$5.5B
TOTAL CURRENT ASSETS	$122.8B
PP&E (Net)	$14.7B
Goodwill	$16.9B
Intangible Assets	$4.8B
Long-Term Investments	$12.1B
Tax Assets	$0
Other Non-Current Assets	$3.1B
TOTAL NON-CURRENT ASSETS	$51.7B
TOTAL ASSETS	$174.5B
Account Payables	$6.6B
Short-Term Debt	$7.5B
Deferred Revenue	$23.2B
Other Current Liabilities	$11.7B
TOTAL CURRENT LIABILITIES	$49.6B
Long-Term Debt	$27.8B
Deferred Revenue NC	$2.1B
Deferred Tax Liabilities	$1.3B
Other Non-Current Liabilities	$13.5B
TOTAL NON-CURRENT LIABILITIES	$44.7B
TOTAL LIABILITIES	$94.4B
Common Stock	$68.5B
Additional Paid-In Capital	$0
Retained Earnings	$9.1B
Treasury Stock	$0
Accum. Other Comp. Income	$2.5B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$80.1B
Minority Interest	$0
TOTAL EQUITY	$80.1B
TOTAL LIABILITIES & EQUITY	$174.5B
Total Debt	$35.3B
Net Debt	$29.7B