Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

Adjustments to Financial Statements

Microsoft Excel

Adjustments to Current Assets

Microsoft Corp., adjusted current assets

US$ in millions

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
As Reported
Current assets 184,257 169,684 184,406 181,915 175,552 169,662
Adjustments
Add: Allowance for doubtful accounts 650 633 751 788 411 377
After Adjustment
Adjusted current assets 184,907 170,317 185,157 182,703 175,963 170,039

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).


Adjustments to Total Assets

Microsoft Corp., adjusted total assets

US$ in millions

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
As Reported
Total assets 411,976 364,840 333,779 301,311 286,556 258,848
Adjustments
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Add: Allowance for doubtful accounts 650 633 751 788 411 377
Less: Long-term deferred income tax assets (included in Other long-term assets)2 20,163 13,515 7,181 6,405 7,536 1,369
After Adjustment
Adjusted total assets 392,463 351,958 327,349 295,694 279,431 257,856

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 Operating lease right-of-use asset (before adoption of FASB Topic 842). See details »

2 Long-term deferred income tax assets (included in Other long-term assets). See details »


Adjustments to Current Liabilities

Microsoft Corp., adjusted current liabilities

US$ in millions

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
As Reported
Current liabilities 104,149 95,082 88,657 72,310 69,420 58,488
Adjustments
Less: Short-term unearned revenue 50,901 45,538 41,525 36,000 32,676 28,905
After Adjustment
Adjusted current liabilities 53,248 49,544 47,132 36,310 36,744 29,583

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).


Adjustments to Total Liabilities

Microsoft Corp., adjusted total liabilities

US$ in millions

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
As Reported
Total liabilities 205,753 198,298 191,791 183,007 184,226 176,130
Adjustments
Add: Operating lease liability (before adoption of FASB Topic 842)1
Less: Long-term deferred income tax liabilities2 433 230 198 204 233 541
Less: Unearned revenue 53,813 48,408 44,141 39,180 37,206 32,720
After Adjustment
Adjusted total liabilities 151,507 149,660 147,452 143,623 146,787 142,869

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 Operating lease liability (before adoption of FASB Topic 842). See details »

2 Long-term deferred income tax liabilities. See details »


Adjustments to Stockholders’ Equity

Microsoft Corp., adjusted stockholders’ equity

US$ in millions

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
As Reported
Stockholders’ equity 206,223 166,542 141,988 118,304 102,330 82,718
Adjustments
Less: Net deferred income tax assets (liabilities)1 19,730 13,285 6,983 6,201 7,303 828
Add: Allowance for doubtful accounts 650 633 751 788 411 377
Add: Unearned revenue 53,813 48,408 44,141 39,180 37,206 32,720
After Adjustment
Adjusted stockholders’ equity 240,956 202,298 179,897 152,071 132,644 114,987

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 Net deferred income tax assets (liabilities). See details »


Adjustments to Capitalization Table

Microsoft Corp., adjusted capitalization table

US$ in millions

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
As Reported
Current portion of long-term debt 5,247 2,749 8,072 3,749 5,516 3,998
Current finance lease liabilities 1,197 1,060 791 540 317 176
Long-term debt, excluding current portion 41,990 47,032 50,074 59,578 66,662 72,242
Long-term finance lease liabilities 15,870 13,842 11,750 8,956 6,257 4,125
Total reported debt 64,304 64,683 70,687 72,823 78,752 80,541
Stockholders’ equity 206,223 166,542 141,988 118,304 102,330 82,718
Total reported capital 270,527 231,225 212,675 191,127 181,082 163,259
Adjustments to Debt
Add: Operating lease liability (before adoption of FASB Topic 842)1
Add: Operating lease liabilities (included in Other current liabilities)2 2,409 2,228 1,962 1,616 1,515 1,399
Add: Long-term operating lease liabilities3 12,728 11,489 9,629 7,671 6,188 5,568
Adjusted total debt 79,441 78,400 82,278 82,110 86,455 87,508
Adjustments to Equity
Less: Net deferred income tax assets (liabilities)4 19,730 13,285 6,983 6,201 7,303 828
Add: Allowance for doubtful accounts 650 633 751 788 411 377
Add: Unearned revenue 53,813 48,408 44,141 39,180 37,206 32,720
Adjusted stockholders’ equity 240,956 202,298 179,897 152,071 132,644 114,987
After Adjustment
Adjusted total capital 320,397 280,698 262,175 234,181 219,099 202,495

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 Operating lease liability (before adoption of FASB Topic 842). See details »

2 Operating lease liabilities (included in Other current liabilities). See details »

3 Long-term operating lease liabilities. See details »

4 Net deferred income tax assets (liabilities). See details »


Adjustments to Revenues

Microsoft Corp., adjusted revenue

US$ in millions

Microsoft Excel
12 months ended: Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
As Reported
Revenue 211,915 198,270 168,088 143,015 125,843 110,360
Adjustment
Add: Increase (decrease) in unearned revenue 5,405 4,267 4,961 1,974 4,486 6,064
After Adjustment
Adjusted revenue 217,320 202,537 173,049 144,989 130,329 116,424

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).


Adjustments to Reported Income

Microsoft Corp., adjusted net income

US$ in millions

Microsoft Excel
12 months ended: Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
As Reported
Net income 72,361 72,738 61,271 44,281 39,240 16,571
Adjustments
Add: Deferred income tax expense (benefit)1 (6,059) (5,702) (150) 11 (6,463) (5,143)
Add: Increase (decrease) in allowance for doubtful accounts 17 (118) (37) 377 34 32
Add: Increase (decrease) in unearned revenue 5,405 4,267 4,961 1,974 4,486 6,064
Add: Other comprehensive income (loss), net of tax (1,665) (6,500) (1,374) 3,523 1,914 (2,856)
After Adjustment
Adjusted net income 70,059 64,685 64,671 50,166 39,211 14,668

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 Deferred income tax expense (benefit). See details »