The cash flow statement provides information about a company 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 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
3 months ended:
Jun 30, 2025
Mar 31, 2025
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
Sep 30, 2022
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Jun 30, 2021
Mar 31, 2021
Dec 31, 2020
Sep 30, 2020
Jun 30, 2020
Mar 31, 2020
Dec 31, 2019
Sep 30, 2019
Net income
27,233)
25,824)
24,108)
24,667)
22,036)
21,939)
21,870)
22,291)
20,081)
18,299)
16,425)
17,556)
16,740)
16,728)
18,765)
20,505)
16,458)
15,457)
15,463)
13,893)
11,202)
10,752)
11,649)
10,678)
Depreciation, amortization, and other
11,203)
8,740)
6,827)
7,383)
6,380)
6,027)
5,959)
3,921)
3,874)
3,549)
3,648)
2,790)
3,979)
3,773)
3,496)
3,212)
3,344)
2,936)
2,761)
2,645)
3,504)
3,118)
3,203)
2,971)
Stock-based compensation expense
3,073)
2,980)
3,089)
2,832)
2,696)
2,703)
2,828)
2,507)
2,416)
2,465)
2,538)
2,192)
1,997)
1,906)
1,897)
1,702)
1,571)
1,525)
1,566)
1,456)
1,349)
1,338)
1,340)
1,262)
Net recognized (gains) losses on investments and derivatives
56)
(298)
976)
(125)
44)
49)
198)
14)
44)
(40)
214)
(22)
157)
105)
(307)
(364)
(416)
(351)
(354)
(128)
(79)
52)
(203)
11)
Deferred income taxes
(2,221)
(2,244)
(1,158)
(1,433)
(1,145)
(1,323)
(1,702)
(568)
(1,888)
(1,675)
(1,305)
(1,191)
283)
(198)
183)
(5,970)
(34)
(88)
(17)
(11)
447)
(206)
(53)
(177)
Accounts receivable
(16,179)
(2,461)
(5,978)
14,037)
(13,246)
(2,028)
(2,951)
11,034)
(11,244)
(1,408)
(3,164)
11,729)
(12,634)
857)
(5,543)
10,486)
(11,606)
290)
(4,008)
8,843)
(9,355)
891)
(4,203)
10,090)
Inventories
(81)
52)
711)
(373)
55)
260)
1,474)
(505)
374)
106)
1,305)
(543)
(461)
(279)
394)
(777)
(388)
(329)
788)
(808)
(251)
181)
799)
(561)
Other current assets
(3,686)
1,077)
(353)
(82)
(2,528)
951)
725)
(796)
(2,419)
1,152)
(392)
(332)
(2,570)
91)
830)
940)
(2,086)
478)
730)
(54)
(2,151)
94)
165)
(438)
Other long-term assets
418)
(518)
(1,089)
(1,761)
(1,240)
(2,137)
(1,427)
(2,013)
(1,548)
(554)
(65)
(666)
(575)
(724)
(908)
(598)
(1,013)
(885)
(1,499)
(62)
(311)
124)
(517)
(333)
Accounts payable
(652)
1,179)
958)
(916)
4,204)
648)
(2,521)
1,214)
1,311)
(407)
(2,058)
(1,567)
2,659)
520)
235)
(471)
1,617)
833)
33)
315)
3,026)
546)
(7)
(547)
Unearned revenue
18,361)
(1,032)
(6,338)
(5,553)
15,657)
(645)
(5,538)
(4,126)
14,224)
(181)
(5,186)
(3,322)
12,546)
(209)
(4,343)
(2,885)
11,397)
(473)
(3,227)
(3,064)
8,776)
(736)
(2,936)
(2,892)
Income taxes
1,043)
1,298)
(3,395)
1,016)
(806)
2,622)
(1,554)
1,425)
681)
1,414)
(2,863)
410)
(991)
1,091)
(2,057)
2,653)
(32)
1,074)
(2,368)
(983)
(589)
765)
(471)
(3,336)
Other current liabilities
5,346)
2,838)
3,217)
(5,479)
4,652)
2,803)
1,518)
(4,106)
2,762)
1,715)
1,819)
(4,024)
3,455)
1,287)
1,745)
(4,143)
3,755)
1,590)
1,755)
(2,951)
2,482)
695)
1,489)
(3,320)
Other long-term liabilities
(1,267)
(391)
716)
(33)
436)
48)
(26)
291)
102)
6)
257)
188)
44)
438)
93)
250)
143)
122)
893)
244)
623)
(110)
425)
410)
Changes in operating assets and liabilities
3,303)
2,042)
(11,551)
856)
7,184)
2,522)
(10,300)
2,418)
4,243)
1,843)
(10,347)
1,873)
1,473)
3,072)
(9,554)
5,455)
1,787)
2,700)
(6,903)
1,480)
2,250)
2,450)
(5,256)
(927)
Adjustments to reconcile net income to net cash from operations
15,414)
11,220)
(1,817)
9,513)
15,159)
9,978)
(3,017)
8,292)
8,689)
6,142)
(5,252)
5,642)
7,889)
8,658)
(4,285)
4,035)
6,252)
6,722)
(2,947)
5,442)
7,471)
6,752)
(969)
3,140)
Net cash from operations
42,647)
37,044)
22,291)
34,180)
37,195)
31,917)
18,853)
30,583)
28,770)
24,441)
11,173)
23,198)
24,629)
25,386)
14,480)
24,540)
22,710)
22,179)
12,516)
19,335)
18,673)
17,504)
10,680)
13,818)
Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net
—)
—)
—)
(5,746)
(1,142)
(3,810)
(8,490)
18,692)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
Proceeds from issuance of debt
—)
—)
—)
—)
197)
6,352)
10,773)
7,073)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
Cash premium on debt exchange
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
(1,754)
—)
—)
(3,417)
—)
—)
—)
Repayments of debt
—)
(2,250)
—)
(966)
(13,065)
(11,589)
(2,916)
(1,500)
(1,000)
—)
(750)
(1,000)
—)
(4,197)
—)
(4,826)
—)
(500)
(3,250)
—)
—)
(3,000)
(18)
(2,500)
Common stock issued
548)
546)
256)
706)
534)
522)
261)
685)
512)
536)
243)
575)
461)
477)
291)
612)
450)
396)
302)
545)
340)
342)
234)
427)
Common stock repurchased
(4,546)
(4,781)
(4,986)
(4,107)
(4,210)
(4,213)
(4,000)
(4,831)
(5,704)
(5,509)
(5,459)
(5,573)
(8,757)
(8,822)
(7,433)
(7,684)
(7,177)
(6,930)
(6,535)
(6,743)
(5,791)
(7,059)
(5,206)
(4,912)
Common stock cash dividends paid
(6,169)
(6,169)
(6,170)
(5,574)
(5,574)
(5,572)
(5,574)
(5,051)
(5,054)
(5,059)
(5,066)
(4,621)
(4,632)
(4,645)
(4,652)
(4,206)
(4,214)
(4,221)
(4,230)
(3,856)
(3,865)
(3,876)
(3,886)
(3,510)
Other, net
(677)
(382)
(343)
(889)
(303)
(498)
(201)
(307)
(167)
(258)
(317)
(264)
(341)
(158)
(192)
(172)
(430)
(183)
79)
(235)
471)
(1,052)
(39)
286)
Net cash from (used in) financing
(10,844)
(13,036)
(11,243)
(16,576)
(23,563)
(18,808)
(10,147)
14,761)
(11,413)
(10,290)
(11,349)
(10,883)
(13,269)
(17,345)
(11,986)
(16,276)
(11,371)
(13,192)
(13,634)
(10,289)
(12,262)
(14,645)
(8,915)
(10,209)
Additions to property and equipment
(17,079)
(16,745)
(15,804)
(14,923)
(13,873)
(10,952)
(9,735)
(9,917)
(8,943)
(6,607)
(6,274)
(6,283)
(6,871)
(5,340)
(5,865)
(5,810)
(6,452)
(5,089)
(4,174)
(4,907)
(4,744)
(3,767)
(3,545)
(3,385)
Acquisition of companies, net of cash acquired and divestitures, and purchases of intangible and other assets
(1,743)
(981)
(1,405)
(1,849)
(1,342)
(1,575)
(65,029)
(1,186)
(341)
(301)
(679)
(349)
(1,263)
(18,719)
(850)
(1,206)
(501)
(7,512)
(415)
(481)
(1,650)
(329)
(80)
(462)
Purchases of investments
(21,631)
(4,474)
(2,050)
(1,620)
(2,831)
(2,183)
(4,258)
(8,460)
(11,976)
(9,063)
(11,599)
(5,013)
(4,919)
(8,723)
(2,505)
(10,309)
(14,877)
(18,375)
(15,092)
(14,580)
(18,879)
(15,910)
(19,011)
(23,390)
Maturities of investments
4,618)
6,721)
2,604)
2,136)
1,557)
3,350)
4,150)
15,718)
6,766)
13,154)
6,928)
6,662)
1,237)
1,099)
5,253)
8,862)
7,246)
15,016)
15,264)
14,266)
18,890)
17,247)
11,230)
19,082)
Sales of investments
2,621)
2,161)
2,559)
1,968)
2,023)
1,941)
1,600)
5,330)
5,629)
1,239)
4,775)
2,711)
3,225)
16,693)
2,895)
5,630)
3,297)
5,876)
2,421)
2,414)
3,162)
2,810)
5,370)
6,379)
Other, net
2,642)
604)
(16)
(913)
(382)
(1,281)
1,347)
(982)
(269)
(1,686)
(301)
(860)
(1,138)
(1,181)
(89)
(417)
434)
400)
327)
(2,083)
(1,241)
—)
—)
—)
Net cash (used in) from investing
(30,572)
(12,714)
(14,112)
(15,201)
(14,848)
(10,700)
(71,925)
503)
(9,134)
(3,264)
(7,150)
(3,132)
(9,729)
(16,171)
(1,161)
(3,250)
(10,853)
(9,684)
(1,669)
(5,371)
(4,462)
51)
(6,036)
(1,776)
Effect of foreign exchange rates on cash and cash equivalents
The financial data exhibits notable fluctuations and several trends across the analyzed periods.
Net Income
Net income demonstrates a general upward trend over the course of the periods, increasing from approximately 10,678 million USD to over 27,233 million USD. Despite some volatility, the growth indicates improving profitability.
Depreciation, Amortization, and Other
This expense category exhibits a rising trend, starting near 2,971 million USD and reaching above 11,000 million USD in later quarters. Such growth suggests increasing investment in capital assets or adjustments in asset valuations.
Stock-based Compensation Expense
Stock-based compensation has steadily increased from 1,262 million USD to over 3,000 million USD, reflecting potentially growing employee incentivization or changes in stock valuation methods.
Net Recognized Gains or Losses on Investments and Derivatives
Values fluctuate between significant gains and losses without a clear long-term direction, indicating volatility in investment returns or derivative positions across the timeline.
Deferred Income Taxes
The deferred tax figures oscillate considerably with some large negative spikes, indicative of tax-related timing differences or adjustments impacting future tax liabilities substantially.
Accounts Receivable
Accounts receivable show extreme variance with several large negative and positive swings, which may imply irregularities in collection cycles or changes in credit terms extended to customers.
Inventories and Other Current Assets
Inventories fluctuate widely, alternating between negative and positive values, reflecting inconsistent inventory management or valuation. Other current assets follow a similar pattern of volatility.
Accounts Payable and Unearned Revenue
Accounts payable and unearned revenue both display significant fluctuations with periods of large inflows and outflows. Unearned revenue, in particular, spikes sharply in some quarters, indicating substantial deferred revenue recognition.
Income Taxes
Income tax amounts vary widely, including large positive and negative values, suggesting fluctuations in taxable income and tax payments over different periods.
Other Current and Long-term Liabilities
These liabilities show irregular changes, sometimes quite pronounced, indicating ongoing adjustments in obligations or provisions.
Changes in Operating Assets and Liabilities
This category exhibits frequent and significant swings both positive and negative, reflecting dynamic changes in working capital components impacting cash flow.
Adjustments to Reconcile Net Income to Net Cash from Operations
Large fluctuations in adjustments correspond with changes in non-cash items and accruals, influencing operating cash flow variability.
Net Cash from Operations
Operating cash flow generally trends upward, with notable peaks and troughs, culminating in a rise above 42,000 million USD, indicative of strong cash-generating capability despite episodic volatility.
Financing Activities
Net cash from financing activities is predominantly negative, showing substantial outflows related to repurchases of common stock and dividend payments. Occasional inflows related to issuance of debt are observed but do not consistently offset the repurchases and dividends paid.
Investing Activities
Net cash used in investing activities is largely negative, driven by significant spending on property, equipment, acquisitions, and purchases of investments. Occasional proceeds from sales and maturities of investments provide partial offset, but the overall trend reflects heavy capital and investment outflows.
Liquidity and Cash Position Changes
Cash and cash equivalents fluctuate significantly, influenced by large operational cash inflows and substantial cash outflows in financing and investing. Several quarters reveal sharp changes caused by unusual financing repayments and investing outlays, leading to volatility in cash balances.
Overall, the data illustrates a company experiencing substantial growth in net income and operating cash flow, alongside increased investment in assets and employee compensation. However, the company also encounters considerable volatility in working capital components and financing activities, highlighted by aggressive share repurchases and dividend payments contributing to negative cash flows in financing. Investment activities reflect a strategy focused on expansion and asset growth. The reported fluctuations in tax, deferred income taxes, and other liabilities underscore ongoing financial complexities requiring attentive management.
