Common-Size Income Statement
Quarterly Data
Paying user area
Try for free
Microsoft Corp. pages available for free this week:
- Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Microsoft Corp. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Microsoft Corp., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
The financial data reveals several key trends over the covered periods.
- Revenue Composition
- The proportion of revenue derived from Product sales has steadily declined, decreasing from approximately 59.48% in late 2018 to about 21.86% by early 2025. Conversely, the share of revenue from Services and Other sources has increased correspondingly, rising from about 40.52% up to 78.14% during the same timeframe. This indicates a clear strategic shift towards service-based offerings over products.
- Cost of Revenue and Gross Margin
- Cost of revenue as a percentage of total revenue has generally fluctuated between roughly 28.84% and 34.06%, with no clear upward or downward trend. Gross margin has remained resilient, varying modestly within a range of approximately 61.74% to 71.16%, evidencing the company's ability to maintain profitability despite changes in the revenue mix.
- Operating Expenses
- Research and development expenses have consistently accounted for around 11.37% to 14.12% of revenue, reflecting steady investment in innovation. Sales and marketing expenses have shown some variability, generally decreasing from highs of nearly 14.93% to lows around 8.72%, suggesting increased efficiency in customer acquisition or shifting marketing strategies. General and administrative costs have remained relatively stable between approximately 2.48% and 4.43% of revenue.
- Profitability Metrics
- Operating income has exhibited a positive trend overall, increasing from roughly 31.59% of revenue in late 2018 to peaks above 47% by 2023 and sustaining levels in the mid-40% range thereafter. Income before income taxes generally follows a similar trajectory, though displaying slightly more variability due to other income and expense fluctuations. Net income as a percentage of revenue has grown from around 25.93% to values exceeding 39%, indicating improved bottom-line performance in the context of evolving revenue and expense structures.
- Other Income/Expense
- This metric has been somewhat volatile, ranging from positive contributions near 1.02% down to negative impacts as significant as -3.29%, particularly in later periods, which may reflect varying non-operational factors including investments, foreign exchange, or financing costs affecting overall income before taxes.
- Income Taxes
- The provision for income taxes expressed as a percentage of revenue demonstrates fluctuations but remains within a band of approximately -8.83% to -0.04%, with no clear directional trend. The variability may signal changing tax rates, credits, or the effects of geographic income shifts.
In summary, the data reflects a strategic transition favoring services over products, maintained gross profitability, disciplined control over operational expenses, and improved earnings metrics. The company's ability to enhance net income margins despite shifts in revenue composition highlights operational adaptability and possibly effective cost management. Variations in other income and tax provisions introduce some income variability but do not diminish the overall positive profitability trend.