Stock Analysis on Net
Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

Cash Flow Statement
Quarterly Data

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 (quarterly data)

US$ in millions

Microsoft Excel LibreOffice Calc
3 months ended: Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
Net income (loss) 11,202  10,752  11,649  10,678  13,187  8,809  8,420  8,824  8,873  7,424  (6,302) 6,576  6,513  4,801  5,200  4,690  3,122  3,756  5,018  4,902  (3,195) 4,985  5,863  4,540 
Asset impairments —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  630  —  —  —  7,498  —  —  — 
Depreciation, amortization, and other 3,504  3,118  3,203  2,971  2,924  2,926  2,995  2,837  2,516  2,710  2,536  2,499  2,343  2,453  2,166  1,816  1,910  1,707  1,544  1,461  1,493  1,515  1,521  1,428 
Stock-based compensation expense 1,349  1,338  1,340  1,262  1,190  1,172  1,183  1,107  1,012  969  986  973  913  883  767  703  664  672  658  674  654  641  633  646 
Net recognized (gains) losses on investments and derivatives (79) 52  (203) 11  (322) (95) (135) (240) (567) (438) (684) (523) (520) (590) (652) (311) (439) 65  50  101  (264) (55) (179) 55 
Excess tax benefits from stock-based compensation —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  (33) (31) (22) (502)
Deferred income taxes 447  (206) (53) (177) (5,723) (320) (173) (247) (2,389) (396) (2,305) (53) (1,947) (777) (587) 15  155  351  (247) 73  (644) 253  314  301 
Deferral of unearned revenue —  —  —  —  —  —  —  —  —  —  —  —  24,992  15,995  14,141  12,583  21,006  13,073  12,570  10,423  16,687  10,163  10,200  8,022 
Recognition of unearned revenue —  —  —  —  —  —  —  —  —  —  —  —  (16,245) (14,941) (13,645) (12,904) (13,004) (12,210) (11,929) (11,355) (11,573) (11,209) (11,495) (10,643)
Accounts receivable (9,355) 891  (4,203) 10,090  (10,070) 460  (2,396) 9,194  (9,188) 1,285  (3,908) 7,949  (6,875) 1,487  (2,711) 7,174  (6,076) 2,288  (3,118) 6,376  (5,448) 3,655  (3,378) 6,627 
Inventories (251) 181  799  (561) (113) 12  1,654  (956) (572) (75) 1,205  (1,023) (199) (16) 1,132  (867) 192  241  1,104  (937) (429) (430) 1,070  (483)
Other current assets (2,151) 94  165  (438) (854) (14) (173) (677) (839) (149) 354  (318) 748  (25) 1,309  (966) 747  (420) (932) (562) 612  (111) (159) (280)
Other long-term assets (311) 124  (517) (333) (865) (517) (473) 21  550  (213) (344) (278) (241) (26) (243) (29) (99) 56  (5) (108) 170  279 
Accounts payable 3,026  546  (7) (547) 1,264  (197) (440) (395) 1,010  (393) 938  (407) 850  (425) 99  (443) (17) (129) 369  (135) (142) (390) 137  (659)
Unearned revenue 8,776  (736) (2,936) (2,892) 9,005  20  (2,122) (2,441) 8,702  91  (1,065) (1,806) —  —  —  —  —  —  —  —  —  —  —  — 
Income taxes (589) 765  (471) (3,336) 3,808  276  (64) (1,091) 903  645  15,974  661  —  —  —  —  —  —  —  —  —  —  —  — 
Other current liabilities 2,482  695  1,489  (3,320) 2,436  649  656  (2,322) 1,773  546  643  (2,164) 1,534  742  (1,529) (361) 1,033  626  105  (2,024) 1,328  200  (986) (1,166)
Other long-term liabilities 623  (110) 425  410  241  339  (32) 43  (366) 145  (153) 354  (861) 1,099  846  449  (1,360) 340  370  (116) 267  492  651  189 
Changes in operating assets and liabilities 2,250  2,450  (5,256) (927) 4,852  1,028  (3,390) 1,376  1,973  1,882  13,644  2,968  (5,044) 2,836  (1,097) 4,957  (5,580) 2,953  (2,046) 2,597  (3,807) 3,308  (2,495) 4,507 
Adjustments to reconcile net income (loss) to net cash from operations 7,471  6,752  (969) 3,140  2,921  4,711  480  4,833  2,545  4,727  14,177  5,864  4,492  5,859  1,093  6,859  5,342  6,611  600  3,974  10,011  4,585  (1,523) 3,814 
Net cash from operations 18,673  17,504  10,680  13,818  16,108  13,520  8,900  13,657  11,418  12,151  7,875  12,440  11,005  10,660  6,293  11,549  8,464  10,367  5,618  8,876  6,816  9,570  4,340  8,354 
Proceeds from issuance (repayments) of short-term debt, maturities of 90 days or less, net —  —  —  —  —  —  —  —  —  (7,373) 3,759  (3,710) 3,484  (1,302) (3,755) (3,390) 6,714  2,622  (7,031) 4,890  3,259  (6,575) 4,798  2,999 
Proceeds from issuance of debt —  —  —  —  —  —  —  —  —  —  3,229  3,954  1,751  547  17,069  24,977  610  25  13,128  121  —  10,680  —  — 
Cash premium on debt exchange (3,417) —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Repayments of debt —  (3,000) (18) (2,500) (1,000) —  (3,000) —  (681) (4,883) (3,327) (1,169) (3,368) (211) (4,118) (225) (25) (900) (121) (1,750) —  —  —  (1,500)
Common stock issued 340  342  234  427  308  274  200  360  255  251  189  307  221  179  131  241  173  159  117  219  151  146  121  216 
Common stock repurchased (5,791) (7,059) (5,206) (4,912) (4,633) (4,753) (6,413) (3,744) (2,362) (3,781) (2,008) (2,570) (1,765) (2,062) (3,599) (4,362) (3,677) (3,857) (3,678) (4,757) (4,279) (5,131) (2,145) (2,888)
Common stock cash dividends paid (3,865) (3,876) (3,886) (3,510) (3,521) (3,526) (3,544) (3,220) (3,226) (3,232) (3,238) (3,003) (3,009) (3,012) (3,024) (2,800) (2,821) (2,842) (2,868) (2,475) (2,496) (2,532) (2,547) (2,307)
Excess tax benefits from stock-based compensation —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  33  31  22  502 
Other, net 471  (1,052) (39) 286  160  404  (459) (780) (25) (640) (156) (150) (15) (375) 312  (112) (3) (123) (65) (178) (239) 316  285  — 
Net cash from (used in) financing (12,262) (14,645) (8,915) (10,209) (8,686) (7,601) (13,216) (7,384) (6,039) (19,658) (1,552) (6,341) (2,701) (6,236) 3,016  14,329  971  (4,916) (518) (3,930) (3,571) (3,065) 534  (2,978)
Additions to property and equipment (4,744) (3,767) (3,545) (3,385) (4,051) (2,565) (3,707) (3,602) (3,980) (2,934) (2,586) (2,132) (2,283) (1,695) (1,988) (2,163) (2,655) (2,308) (2,024) (1,356) (1,781) (1,391) (1,490) (1,282)
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets (1,650) (329) (80) (462) (281) (269) (1,593) (245) (434) (248) (27) (179) (358) (802) (24,760) (24) (63) (559) (381) (390) (626) (162) (2,794) (141)
Purchases of investments (18,879) (15,910) (19,011) (23,390) (15,442) (5,846) (16,858) (19,551) (32,380) (26,885) (45,154) (32,961) (29,031) (43,918) (46,775) (57,181) (30,097) (27,341) (34,750) (37,570) (25,259) (30,218) (19,167) (24,085)
Maturities of investments 18,890  17,247  11,230  19,082  5,154  5,893  3,782  5,214  7,108  7,674  6,352  5,226  5,810  4,860  8,715  8,659  5,825  5,192  5,351  5,686  5,370  5,561  2,389  1,693 
Sales of investments 3,162  2,810  5,370  6,379  7,363  1,424  14,176  15,231  27,024  26,256  41,261  23,036  18,596  36,444  48,987  32,323  16,995  19,599  28,191  28,502  17,232  21,063  16,108  16,445 
Other, net (1,241) —  —  —  —  —  —  —  (8) (19) (177) 106  (103) (1,080) 1,070  (84) (78) (66) 285  62  (3) (334) 238  (367)
Net cash used in investing (4,462) 51  (6,036) (1,776) (7,257) (1,363) (4,200) (2,953) (2,670) 3,844  (331) (6,904) (7,369) (6,191) (14,751) (18,470) (10,073) (5,483) (3,328) (5,066) (5,067) (5,481) (4,716) (7,737)
Effect of foreign exchange rates on cash and cash equivalents (83) (64) 18  (72) (21) 18  17  (129) 16  25  (17) 26  15  12  (18) 10  (22) 17  (18) (44) (36) (34) (6)
Net change in cash and cash equivalents 1,866  2,846  (4,253) 1,761  144  4,574  (8,499) 3,191  2,725  (3,638) 5,975  (779) 950  (1,755) (5,460) 7,418  (660) (15) 1,754  (164) (1,819) 988  124  (2,367)

Based on: 10-K (filing date: 2020-07-31), 10-Q (filing date: 2020-04-29), 10-Q (filing date: 2020-01-29), 10-Q (filing date: 2019-10-23), 10-K (filing date: 2019-08-01), 10-Q (filing date: 2019-04-24), 10-Q (filing date: 2019-01-30), 10-Q (filing date: 2018-10-24), 10-K (filing date: 2018-08-03), 10-Q (filing date: 2018-04-26), 10-Q (filing date: 2018-01-31), 10-Q (filing date: 2017-10-26), 10-K (filing date: 2017-08-02), 10-Q (filing date: 2017-04-27), 10-Q (filing date: 2017-01-26), 10-Q (filing date: 2016-10-20), 10-K (filing date: 2016-07-28), 10-Q (filing date: 2016-04-21), 10-Q (filing date: 2016-01-28), 10-Q (filing date: 2015-10-22), 10-K (filing date: 2015-07-31), 10-Q (filing date: 2015-04-23), 10-Q (filing date: 2015-01-26), 10-Q (filing date: 2014-10-23).

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 Q2 2020 to Q3 2020 and from Q3 2020 to Q4 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 Q2 2020 to Q3 2020 but then slightly increased from Q3 2020 to Q4 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 increased from Q2 2020 to Q3 2020 but then slightly decreased from Q3 2020 to Q4 2020 not reaching Q2 2020 level.