MSFT Q4 2020 Earnings Report — Microsoft Corporation Revenue & Financial Results | Market Cap Arena

Microsoft CorporationMSFT

Q4 2020 Earnings

Reported July 30, 2020

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q4 2020	Q3 2020	Q4 2019	QoQ Change	YoY Change
Revenue	$38.0B	$35.0B	$33.7B	8.6%	12.8%
Op. Income	$13.4B	$13.0B	$12.4B	3.3%	8.1%
Gross Margin	67.6%	68.7%	69.1%	-1.1pp	-1.6pp
Net Margin	29.5%	30.7%	39.1%	-1.2pp	-9.7pp
EPS (Diluted)	$1.46	$1.40	$1.71	4.3%	-14.6%
Free Cash Flow	$13.9B	$13.7B	$12.1B	1.4%	15.5%

Revenue Flow

Item	Amount
REVENUE	$38.0B
Cost of Revenue	$12.3B
GROSS PROFIT	$25.7B
R&D Expenses	$5.2B
Selling & Marketing	$5.4B
General & Administrative	$1.7B
SG&A Expenses	$7.1B
Other Expenses	$0
Operating Expenses	$12.3B
Cost & Expenses	$24.6B
OPERATING INCOME	$13.4B
Interest Income	$595M
Interest Expense	$686M
Other Income/Expenses	$15M
INCOME BEFORE TAX	$13.4B
Income Tax Expense	$2.2B
Net Income from Continuing Ops	$11.2B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$11.2B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$11.2B
D&A	$3.5B
EBIT	$14.1B
EBITDA	$17.6B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$38.0B
Cost of Revenue	$12.3B
GROSS PROFIT	$25.7B
R&D Expenses	$5.2B
Selling & Marketing	$5.4B
General & Administrative	$1.7B
SG&A Expenses	$7.1B
Other Expenses	$0
Operating Expenses	$12.3B
Cost & Expenses	$24.6B
OPERATING INCOME	$13.4B
Interest Income	$595M
Interest Expense	$686M
Other Income/Expenses	$15M
INCOME BEFORE TAX	$13.4B
Income Tax Expense	$2.2B
Net Income from Continuing Ops	$11.2B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$11.2B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$11.2B
D&A	$3.5B
EBIT	$14.1B
EBITDA	$17.6B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$11.2B
Depreciation & Amortization	$3.5B
Stock-Based Compensation	$1.3B
Deferred Income Tax	$447M
Other Non-Cash Items	-$79M
Change in Working Capital	$2.3B
OPERATING CASH FLOW	$18.7B
Capital Expenditure	-$4.7B
Acquisitions (Net)	-$1.6B
Purchases of Investments	-$18.9B
Sales/Maturities of Investments	$22.1B
Other Investing Activities	-$1.2B
NET CASH FROM INVESTING	-$4.5B
Net Debt Issuance	$0
Common Stock Repurchased	-$5.8B
Common Dividends Paid	-$3.9B
Other Financing Activities	-$2.9B
NET CASH FROM FINANCING	-$12.3B
FREE CASH FLOW	$13.9B
Net Change in Cash	$1.9B

Balance Sheet

Item	Amount
Cash & Equivalents	$13.6B
Short-Term Investments	$123.0B
Net Receivables	$32.0B
Inventory	$1.9B
Other Current Assets	$11.5B
TOTAL CURRENT ASSETS	$181.9B
PP&E (Net)	$52.9B
Goodwill	$43.4B
Intangible Assets	$7.0B
Long-Term Investments	$3.0B
Tax Assets	$0
Other Non-Current Assets	$13.1B
TOTAL NON-CURRENT ASSETS	$119.4B
TOTAL ASSETS	$301.3B
Account Payables	$12.5B
Short-Term Debt	$3.7B
Deferred Revenue	$36.0B
Other Current Liabilities	$15.7B
TOTAL CURRENT LIABILITIES	$72.3B
Long-Term Debt	$59.6B
Deferred Revenue NC	$3.2B
Deferred Tax Liabilities	$204M
Other Non-Current Liabilities	$31.1B
TOTAL NON-CURRENT LIABILITIES	$110.7B
TOTAL LIABILITIES	$183.0B
Common Stock	$80.6B
Additional Paid-In Capital	$0
Retained Earnings	$34.6B
Treasury Stock	$0
Accum. Other Comp. Income	$3.2B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$118.3B
Minority Interest	$0
TOTAL EQUITY	$118.3B
TOTAL LIABILITIES & EQUITY	$301.3B
Total Debt	$82.1B
Net Debt	$68.5B