MSFT Q4 2016 Earnings Report — Microsoft Corporation Revenue & Financial Results | Market Cap Arena

Microsoft CorporationMSFT

Q4 2016 Earnings

Reported July 28, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q4 2016	Q3 2016	Q4 2015	QoQ Change	YoY Change
Revenue	$20.6B	$20.5B	—	0.4%	—
Op. Income	$3.1B	$5.3B	—	-41.7%	—
Gross Margin	61.3%	62.4%	—	-1.1pp	—
Net Margin	15.1%	18.3%	—	-3.1pp	—
EPS (Diluted)	$0.39	$0.47	—	-17.0%	—
Free Cash Flow	$5.8B	$8.1B	—	-27.9%	—

Revenue Flow

Item	Amount
REVENUE	$20.6B
Cost of Revenue	$8.0B
GROSS PROFIT	$12.6B
R&D Expenses	$3.1B
Selling & Marketing	$4.0B
General & Administrative	$1.3B
SG&A Expenses	$5.3B
Other Expenses	$0
Operating Expenses	$8.4B
Cost & Expenses	$16.4B
OPERATING INCOME	$3.1B
Interest Income	$0
Interest Expense	$345M
Other Income/Expenses	$267M
INCOME BEFORE TAX	$3.3B
Income Tax Expense	$225M
Net Income from Continuing Ops	$3.1B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$3.1B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$3.1B
D&A	$1.9B
EBIT	$3.7B
EBITDA	$5.6B
EPS	$0
EPS Diluted	$0

Income Statement

Item	Amount
REVENUE	$20.6B
Cost of Revenue	$8.0B
GROSS PROFIT	$12.6B
R&D Expenses	$3.1B
Selling & Marketing	$4.0B
General & Administrative	$1.3B
SG&A Expenses	$5.3B
Other Expenses	$0
Operating Expenses	$8.4B
Cost & Expenses	$16.4B
OPERATING INCOME	$3.1B
Interest Income	$0
Interest Expense	$345M
Other Income/Expenses	$267M
INCOME BEFORE TAX	$3.3B
Income Tax Expense	$225M
Net Income from Continuing Ops	$3.1B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$3.1B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$3.1B
D&A	$1.9B
EBIT	$3.7B
EBITDA	$5.6B
EPS	$0
EPS Diluted	$0

Cash Flow Statement

Item	Amount
Net Income	$3.1B
Depreciation & Amortization	$1.9B
Stock-Based Compensation	$664M
Deferred Income Tax	$155M
Other Non-Cash Items	-$12.8B
Change in Working Capital	$15.4B
OPERATING CASH FLOW	$8.5B
Capital Expenditure	-$2.7B
Acquisitions (Net)	-$63M
Purchases of Investments	-$30.1B
Sales/Maturities of Investments	$22.8B
Other Investing Activities	-$78M
NET CASH FROM INVESTING	-$10.1B
Net Debt Issuance	$7.3B
Common Stock Repurchased	-$3.7B
Common Dividends Paid	-$2.8B
Other Financing Activities	-$3M
NET CASH FROM FINANCING	$971M
FREE CASH FLOW	$5.8B
Net Change in Cash	-$660M

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	$13.6B
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	$53.5B
Net Debt	$47.0B