Financial statements analysis and stock valuation

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of Microsoft Corp. during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Long-term (Investment) Activity Analysis
Quarterly Data

Measures how efficiently Microsoft Corp. generates revenues from its investments in fixed or total assets.

• Ratios (Summary)
• Net Fixed Asset Turnover
• Total Asset Turnover
• Equity Turnover

Income Statement
Quarterly Data

The income statement (statement of earnings) reports on the performance of Microsoft Corp., the result of its operating activities.

Return on Equity (ROE)
since 2005

Microsoft Corp.’s profitability ratio calculated as net income divided by shareholders’ equity.

• Calculation
• Comparison to Competitors
• Comparison to Software & Computer Services Sector
• Comparison to Technology Industry

Enterprise Value to EBITDA (EV/EBITDA)

To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.

• Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
• EV to EBITDA Ratio, Current
• EV to EBITDA Ratio, Historical

Statement of Financial Position, Liabilities and Stockholders’ Equity
Quarterly Data

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.