MSFT FY 2016 Earnings Report — Microsoft Corporation Revenue & Financial Results | Market Cap Arena

Microsoft CorporationMSFT

FY 2016 Earnings

Reported July 28, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2016	Prior Q	FY 2015	QoQ Change	YoY Change
Revenue	$91.2B	—	$93.6B	—	-2.6%
Op. Income	$26.1B	—	$18.2B	—	43.6%
Gross Margin	64.0%	—	64.7%	—	-0.7pp
Net Margin	22.5%	—	13.0%	—	9.5pp
EPS (Diluted)	$2.10	—	$1.48	—	41.9%
Free Cash Flow	$25.0B	—	$23.7B	—	5.3%

Revenue Flow

Item	Amount
REVENUE	$91.2B
Cost of Revenue	$32.8B
GROSS PROFIT	$58.4B
R&D Expenses	$12.0B
Selling & Marketing	$14.6B
General & Administrative	$4.6B
SG&A Expenses	$19.2B
Other Expenses	$1.1B
Operating Expenses	$32.3B
Cost & Expenses	$65.1B
OPERATING INCOME	$26.1B
Interest Income	$0
Interest Expense	$1.2B
Other Income/Expenses	-$439M
INCOME BEFORE TAX	$25.6B
Income Tax Expense	$5.1B
Net Income from Continuing Ops	$20.5B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$20.5B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$20.5B
D&A	$6.6B
EBIT	$26.9B
EBITDA	$33.5B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$91.2B
Cost of Revenue	$32.8B
GROSS PROFIT	$58.4B
R&D Expenses	$12.0B
Selling & Marketing	$14.6B
General & Administrative	$4.6B
SG&A Expenses	$19.2B
Other Expenses	$1.1B
Operating Expenses	$32.3B
Cost & Expenses	$65.1B
OPERATING INCOME	$26.1B
Interest Income	$0
Interest Expense	$1.2B
Other Income/Expenses	-$439M
INCOME BEFORE TAX	$25.6B
Income Tax Expense	$5.1B
Net Income from Continuing Ops	$20.5B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$20.5B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$20.5B
D&A	$6.6B
EBIT	$26.9B
EBITDA	$33.5B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$20.5B
Depreciation & Amortization	$6.6B
Stock-Based Compensation	$2.7B
Deferred Income Tax	$2.5B
Other Non-Cash Items	$407M
Change in Working Capital	$610M
OPERATING CASH FLOW	$33.3B
Capital Expenditure	-$8.3B
Acquisitions (Net)	-$1.4B
Purchases of Investments	-$129.8B
Sales/Maturities of Investments	$115.3B
Other Investing Activities	$203M
NET CASH FROM INVESTING	-$23.9B
Net Debt Issuance	$18.3B
Common Stock Repurchased	-$16.0B
Common Dividends Paid	-$11.0B
Other Financing Activities	-$369M
NET CASH FROM FINANCING	-$8.4B
FREE CASH FLOW	$25.0B
Net Change in Cash	$915M

Balance Sheet

Item	Amount
Cash & Equivalents	$6.5B
Short-Term Investments	$106.7B
Net Receivables	$18.3B
Inventory	$2.3B
Other Current Assets	$5.9B
TOTAL CURRENT ASSETS	$139.7B
PP&E (Net)	$18.4B
Goodwill	$17.9B
Intangible Assets	$3.7B
Long-Term Investments	$10.4B
Tax Assets	$0
Other Non-Current Assets	$3.4B
TOTAL NON-CURRENT ASSETS	$53.8B
TOTAL ASSETS	$193.5B
Account Payables	$6.9B
Short-Term Debt	$12.9B
Deferred Revenue	$27.5B
Other Current Liabilities	$11.2B
TOTAL CURRENT LIABILITIES	$59.4B
Long-Term Debt	$40.6B
Deferred Revenue NC	$6.4B
Deferred Tax Liabilities	$1.5B
Other Non-Current Liabilities	$12.9B
TOTAL NON-CURRENT LIABILITIES	$62.1B
TOTAL LIABILITIES	$121.5B
Common Stock	$68.2B
Additional Paid-In Capital	$0
Retained Earnings	$2.3B
Treasury Stock	$0
Accum. Other Comp. Income	$1.5B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$72.0B
Minority Interest	$0
TOTAL EQUITY	$72.0B
TOTAL LIABILITIES & EQUITY	$193.5B
Total Debt	$54.2B
Net Debt	$47.7B