Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Microsoft Corp. (NASDAQ:MSFT)

Cash Flow Statement

Beginner level

The cash flow statement provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company’s balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Microsoft Corp., consolidated cash flow statement

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Net income 44,281  39,240  16,571  21,204  16,798  12,193 
Asset impairments —  —  —  —  630  7,498 
Depreciation, amortization, and other 12,796  11,682  10,261  8,778  6,622  5,957 
Stock-based compensation expense 5,289  4,652  3,940  3,266  2,668  2,574 
Net recognized gains on investments and derivatives (219) (792) (2,212) (2,073) (223) (443)
Excess tax benefits from stock-based compensation —  —  —  —  —  (588)
Deferred income taxes 11  (6,463) (5,143) (3,296) 332  224 
Deferral of unearned revenue —  —  —  67,711  57,072  45,072 
Recognition of unearned revenue —  —  —  (57,735) (48,498) (44,920)
Accounts receivable (2,577) (2,812) (3,862) (925) (530) 1,456 
Inventories 168  597  (465) 50  600  (272)
Other current assets (2,330) (1,718) (952) 1,066  (1,167) 62 
Other long-term assets (1,037) (1,834) (285) (539) (41) 346 
Accounts payable 3,018  232  1,148  81  88  (1,054)
Unearned revenue 2,212  4,462  5,922  —  —  — 
Income taxes (3,631) 2,929  18,183  —  —  — 
Other current liabilities 1,346  1,419  798  386  (260) (624)
Other long-term liabilities 1,348  591  (20) 1,533  (766) 1,599 
Changes in operating assets and liabilities (1,483) 3,866  20,467  1,652  (2,076) 1,513 
Adjustments to reconcile net income to net cash from operations 16,394  12,945  27,313  18,303  16,527  16,887 
Net cash from operations 60,675  52,185  43,884  39,507  33,325  29,080 
Proceeds from issuance (repayments) of short-term debt, maturities of 90 days or less, net —  —  (7,324) (4,963) 7,195  4,481 
Proceeds from issuance of debt —  —  7,183  44,344  13,884  10,680 
Cash premium on debt exchange (3,417) —  —  —  —  — 
Repayments of debt (5,518) (4,000) (10,060) (7,922) (2,796) (1,500)
Common stock issued 1,343  1,142  1,002  772  668  634 
Common stock repurchased (22,968) (19,543) (10,721) (11,788) (15,969) (14,443)
Common stock cash dividends paid (15,137) (13,811) (12,699) (11,845) (11,006) (9,882)
Excess tax benefits from stock-based compensation —  —  —  —  —  588 
Other, net (334) (675) (971) (190) (369) 362 
Net cash from (used in) financing (46,031) (36,887) (33,590) 8,408  (8,393) (9,080)
Additions to property and equipment (15,441) (13,925) (11,632) (8,129) (8,343) (5,944)
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets (2,521) (2,388) (888) (25,944) (1,393) (3,723)
Purchases of investments (77,190) (57,697) (137,380) (176,905) (129,758) (98,729)
Maturities of investments 66,449  20,043  26,360  28,044  22,054  15,013 
Sales of investments 17,721  38,194  117,577  136,350  93,287  70,848 
Other, net (1,241) —  (98) (197) 203  (466)
Net cash used in investing (12,223) (15,773) (6,061) (46,781) (23,950) (23,001)
Effect of foreign exchange rates on cash and cash equivalents (201) (115) 50  19  (67) (73)
Net change in cash and cash equivalents 2,220  (590) 4,283  1,153  915  (3,074)
Cash and cash equivalents, beginning of period 11,356  11,946  7,663  6,510  5,595  8,669 
Cash and cash equivalents, end of period 13,576  11,356  11,946  7,663  6,510  5,595 

Based on: 10-K (filing date: 2020-07-31), 10-K (filing date: 2019-08-01), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31).

Cash flow statement item Description The company
Net cash from operations Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities. Microsoft Corp.’s net cash from operations increased from 2018 to 2019 and from 2019 to 2020.
Net cash from (used in) financing Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit. Microsoft Corp.’s net cash from (used in) financing decreased from 2018 to 2019 and from 2019 to 2020.
Net cash used in investing Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets. Microsoft Corp.’s net cash used in investing decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.