Microsoft Corp. (NASDAQ:MSFT)

The financial data reveals a fluctuating trend in the values of current assets over the examined period. Starting from June 30, 2019, current assets initially show a moderate increase through to June 30, 2021, reaching a peak value around that time. However, after this peak, there is a noticeable decline in current assets as of June 30, 2022. A recovery appears in June 30, 2023, with assets increasing again, though not reaching previous highs, followed by a subsequent decrease in June 30, 2024, marking the lowest value within the last five years.

Similar patterns are observable in the adjusted current assets data. The values generally track closely to the current assets figures, suggesting that adjustments made do not drastically shift the overall trend or financial position as reflected in these asset categories. Adjusted current assets also peak around mid-2021, decline in 2022, recover slightly in 2023, and drop again in 2024, mirroring the movements of the unadjusted figures.

Trend Insights

There is an initial growth phase in current and adjusted current assets through mid-2021, indicating an accumulation of short-term resources or improvements in liquidity during this period.

The decline observed in 2022 may point to asset utilization, sales, or other business activities impacting liquidity or asset holdings.

A partial rebound in 2023 suggests some recovery or acquisition of current assets.

The significant decrease in assets by mid-2024 highlights a potential shift in asset management strategy or external factors influencing the company's short-term asset base.

Overall, the data indicates variability and moderate volatility in the liquidity position as represented by current assets over the five-year timeline, with implications for working capital management and operational funding capacity.

The analysis of the financial data reveals a consistent upward trend in both total assets and adjusted total assets over the six-year period ending June 30, 2024.

Total Assets

The total assets increased steadily from US$286,556 million in 2019 to US$512,163 million in 2024. This represents a substantial growth of approximately 79% over the six years. Each year shows a positive increment compared to the previous one, indicating continuous investment and asset accumulation.

Adjusted Total Assets

The adjusted total assets, which likely account for certain adjustments such as depreciation or other revaluations, also exhibited a consistent rise from US$279,431 million in 2019 to US$490,723 million in 2024. This also reflects a similar growth trajectory, with an increase of about 75% over the period. The gap between total assets and adjusted total assets remains relatively stable, suggesting proportional adjustments over time.

Overall, the data demonstrates strong asset growth, reflecting possibly effective asset management, expansion, and capital investment. The parallel increase in adjusted total assets confirms that the underlying asset quality and valuations remain robust throughout the years analyzed.

The analysis of the available financial data over the six-year period reveals consistent growth in both current liabilities and adjusted current liabilities.

Current Liabilities

Current liabilities have shown a steady increase each year, starting from US$69,420 million in 2019 and rising to US$125,286 million in 2024. This represents an overall increase of approximately 80.5% over the period. The rise indicates that the company has been taking on more short-term obligations annually, which could reflect increased operational activities, expansion, or changes in working capital management.

Adjusted Current Liabilities

Adjusted current liabilities have also increased, though their growth rate is somewhat lower compared to total current liabilities. Beginning at US$36,744 million in 2019, they reached US$67,704 million by 2024, a growth of about 84.2%. This adjusted figure likely excludes some categories of liabilities to provide a clearer picture of the company’s obligations that are more directly influenced by operational factors.

Trend Comparison

While both current and adjusted current liabilities increased, the difference between these two measures has widened over time. This suggests that the components excluded in the adjusted liabilities category have grown at a slower pace or remained relatively more stable compared to the overall current liabilities.

Insight

The increasing levels of current and adjusted current liabilities imply that the company has been expanding its short-term financing or operational commitments. This upward trend necessitates monitoring to ensure that these liabilities are managed effectively to avoid potential liquidity risks. However, without accompanying asset or cash flow data, it is difficult to assess the impact on overall financial stability conclusively.

Total Liabilities

The total liabilities showed a general upward trend over the six-year period. Starting at 184,226 million USD in mid-2019, there was a minor decline in 2020 to 183,007 million USD. However, from 2021 onwards, total liabilities increased steadily each year, reaching 243,686 million USD by mid-2024. The most notable rise occurred between 2023 and 2024, with a significant jump of approximately 38,000 million USD.

Adjusted Total Liabilities

Adjusted total liabilities followed a slightly different pattern but also demonstrated a rising trend overall. Beginning at 146,787 million USD in mid-2019, adjusted liabilities decreased to 143,623 million USD in 2020. From 2021 through 2023, these liabilities increased gradually each year, albeit at a slower pace than the total liabilities, reaching 151,507 million USD. A marked increase occurred in the final year to mid-2024 with adjusted liabilities rising sharply to 180,884 million USD. This indicates a substantial adjustment or reclassification contributing to higher recognized liabilities in the latest period.

Comparative Insights

The data reveals that both total and adjusted total liabilities experienced stable or minor decreases around 2020, potentially reflecting a response to market or economic conditions during that period. Subsequent years show consistent liability growth, with the acceleration particularly notable in the final year for both measures, suggesting increased leverage or obligation accumulation. The gap between total and adjusted total liabilities remained relatively consistent until 2024 when the divergence widened, implying changes in accounting treatments or contingent liabilities becoming more prominent.

Stockholders’ Equity

There is a consistent upward trend in stockholders' equity over the six-year period from June 30, 2019, to June 30, 2024. Starting at US$102,330 million in 2019, the figure increased steadily each year, reaching US$268,477 million by June 30, 2024. This represents an overall growth of approximately 162% over the period, indicating a strengthening equity base.

Adjusted Stockholders’ Equity

Adjusted stockholders' equity also shows a continuous increase across the years examined. Beginning at US$132,644 million in 2019, it rose incrementally to US$309,839 million by June 30, 2024. This indicates a growth of nearly 133% during the period. The adjusted measure consistently exceeds the reported stockholders' equity, suggesting that adjustments—potentially for items such as intangible assets or other comprehensive income—enhance the equity position significantly.

Comparative Insights

Both stockholders’ equity and adjusted stockholders’ equity have exhibited robust growth, with adjusted equity maintaining a higher value throughout. The difference between adjusted and reported equity appears to widen over time, implying that adjustments become increasingly significant in reflecting the company's true equity position. Overall, the data implies a solid and improving financial foundation over the examined periods.

The financial data reveals several important trends concerning the company's capital structure and financial position over the six-year period.

Total Reported Debt

This metric exhibits a general decline from 2019 to 2023, decreasing from 78,752 million USD to 64,304 million USD, indicating a reduction in nominal liabilities over this period. However, in 2024, total reported debt increases sharply to 78,775 million USD, returning to levels similar to those seen in 2019.

Stockholders’ Equity

There is a consistent upward trajectory in stockholders’ equity, rising steadily from 102,330 million USD in 2019 to 268,477 million USD in 2024. This suggests sustained growth in the company’s net worth and retained earnings or capital contributions during the period.

Total Reported Capital

Reflecting the combined movements of debt and equity, total reported capital increases annually, advancing from 181,082 million USD in 2019 to 347,252 million USD by 2024. This growth underscores overall capital expansion potentially linked to business growth or asset accumulation.

Adjusted Total Debt

The adjusted measure of total debt follows a pattern roughly similar to total reported debt, albeit with fluctuations. After an initial decline from 86,455 million USD in 2019 to a low point of 78,400 million USD in 2022, it slightly rises to 79,441 million USD in 2023, then sharply increases to 97,852 million USD in 2024, exceeding prior levels.

Adjusted Stockholders’ Equity

Adjusted equity also shows a steady and strong increase throughout the period, starting at 132,644 million USD and reaching 309,839 million USD in 2024. This reinforces the pattern of growing shareholder value when adjusted for specific accounting considerations.

Adjusted Total Capital

This metric grows consistently each year from 219,099 million USD to 407,691 million USD, reflecting an overall increase in combined adjusted debt and equity capital. The steady rise indicates the company’s expanding financial base under adjusted accounting measures.

Overall, the capital structure trends indicate a significant increase in equity and total capital over the analyzed years, with debt levels demonstrating a nuanced pattern of initial reduction followed by a marked increase in the final year. The adjusted figures confirm these patterns and suggest robust capital growth, pointing to a strengthening financial position despite fluctuations in debt.

The annual financial data reveals a consistent upward trend in both reported revenue and adjusted revenue over the six-year period ending June 30, 2024. This growth trend indicates a positive and expanding business operation in terms of sales performance.

Revenue

The revenue has shown a steady increase every year, starting from $125,843 million in 2019 and reaching $245,122 million in 2024. This represents nearly a doubling of revenue over the period, with notable increments each year. The growth appears to accelerate particularly from 2021 onward, where the increase is more pronounced, reflecting enhanced market penetration or successful product/service offerings.

Adjusted Revenue

Adjusted revenue follows a similar upward trajectory, beginning at $130,329 million in 2019 and rising to $251,493 million as of 2024. The adjusted revenue is consistently higher than the reported revenue each year, suggesting the adjustments account for items that improve the comparability of revenue figures across periods. The increment pattern in adjusted revenue aligns closely with the reported revenue, confirming consistent growth. The largest year-over-year increases appear between 2020 and 2024, indicating ongoing strengthening in business fundamentals.

Overall, the data reflects solid revenue expansion with no apparent periods of decline, signaling stable growth and effective management strategies contributing to financial performance. The upward trends in both reported and adjusted metrics underscore sustained operational success over the evaluated timeframe.

Net Income

The net income has demonstrated an overall upward trend over the analyzed period. Starting from 39,240 million US dollars in June 2019, it increased significantly to 44,281 million US dollars in June 2020.

This upward trajectory accelerated further in the subsequent years, reaching 61,271 million US dollars in June 2021 and 72,738 million US dollars in June 2022. A slight decrease occurred in June 2023, with net income recorded at 72,361 million US dollars, but the figure rebounded strongly in June 2024, reaching the highest level in the period at 88,136 million US dollars.

Adjusted Net Income

Adjusted net income also follows a generally positive trend, starting at 39,211 million US dollars in June 2019. A notable increase was observed in June 2020, when adjusted net income rose to 50,166 million US dollars.

Continued growth was evident in June 2021 and June 2022, with values of 64,671 million and 64,685 million US dollars respectively, suggesting a stabilization between these two years.

In June 2023, adjusted net income increased further to 70,059 million US dollars and saw a substantial rise in June 2024 to 90,702 million US dollars, surpassing net income for the same period.

Comparative Insights

Both net income and adjusted net income exhibited strong growth across the years, with adjusted net income consistently higher than the reported net income, especially from June 2020 onwards.

The difference between the two metrics widened over time, indicative of adjustments made for non-recurring items or other financial considerations enhancing the measure of ongoing profitability.

The persistence of growth in adjusted net income alongside the increase in net income suggests strong operational performance, with a particularly pronounced improvement in the final year under review.