Cash Flow Statement

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

US$ in millions

12 months ended:	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income	101,832)	88,136)	72,361)	72,738)	61,271)	44,281)
Depreciation, amortization, and other	34,153)	22,287)	13,861)	14,460)	11,686)	12,796)
Stock-based compensation expense	11,974)	10,734)	9,611)	7,502)	6,118)	5,289)
Net recognized (gains) losses on investments and derivatives	609)	305)	196)	(409)	(1,249)	(219)
Deferred income taxes	(7,056)	(4,738)	(6,059)	(5,702)	(150)	11)
Accounts receivable	(10,581)	(7,191)	(4,087)	(6,834)	(6,481)	(2,577)
Inventories	309)	1,284)	1,242)	(1,123)	(737)	168)
Other current assets	(3,044)	(1,648)	(1,991)	(709)	(932)	(2,330)
Other long-term assets	(2,950)	(6,817)	(2,833)	(2,805)	(3,459)	(1,037)
Accounts payable	569)	3,545)	(2,721)	2,943)	2,798)	3,018)
Unearned revenue	5,438)	5,348)	5,535)	5,109)	4,633)	2,212)
Income taxes	(38)	1,687)	(358)	696)	(2,309)	(3,631)
Other current liabilities	5,922)	4,867)	2,272)	2,344)	4,149)	1,346)
Other long-term liabilities	(975)	749)	553)	825)	1,402)	1,348)
Changes in operating assets and liabilities	(5,350)	1,824)	(2,388)	446)	(936)	(1,483)
Adjustments to reconcile net income to net cash from operations	34,330)	30,412)	15,221)	16,297)	15,469)	16,394)
Net cash from operations	136,162)	118,548)	87,582)	89,035)	76,740)	60,675)
Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net	(5,746)	5,250)	—)	—)	—)	—)
Proceeds from issuance of debt	—)	24,395)	—)	—)	—)	—)
Cash premium on debt exchange	—)	—)	—)	—)	(1,754)	(3,417)
Repayments of debt	(3,216)	(29,070)	(2,750)	(9,023)	(3,750)	(5,518)
Common stock issued	2,056)	2,002)	1,866)	1,841)	1,693)	1,343)
Common stock repurchased	(18,420)	(17,254)	(22,245)	(32,696)	(27,385)	(22,968)
Common stock cash dividends paid	(24,082)	(21,771)	(19,800)	(18,135)	(16,521)	(15,137)
Other, net	(2,291)	(1,309)	(1,006)	(863)	(769)	(334)
Net cash used in financing	(51,699)	(37,757)	(43,935)	(58,876)	(48,486)	(46,031)
Additions to property and equipment	(64,551)	(44,477)	(28,107)	(23,886)	(20,622)	(15,441)
Acquisition of companies, net of cash acquired and divestitures, and purchases of intangible and other assets	(5,978)	(69,132)	(1,670)	(22,038)	(8,909)	(2,521)
Purchases of investments	(29,775)	(17,732)	(37,651)	(26,456)	(62,924)	(77,190)
Maturities of investments	16,079)	24,775)	33,510)	16,451)	51,792)	66,449)
Sales of investments	9,309)	10,894)	14,354)	28,443)	14,008)	17,721)
Other, net	2,317)	(1,298)	(3,116)	(2,825)	(922)	(1,241)
Net cash used in investing	(72,599)	(96,970)	(22,680)	(30,311)	(27,577)	(12,223)
Effect of foreign exchange rates on cash and cash equivalents	63)	(210)	(194)	(141)	(29)	(201)
Net change in cash and cash equivalents	11,927)	(16,389)	20,773)	(293)	648)	2,220)
Cash and cash equivalents, beginning of period	18,315)	34,704)	13,931)	14,224)	13,576)	11,356)
Cash and cash equivalents, end of period	30,242)	18,315)	34,704)	13,931)	14,224)	13,576)

Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 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).

The financial data reflects a generally positive trend in net income, with consistent growth from $44.3 billion in 2020 to an estimated $101.8 billion in 2025. This upward trajectory indicates strong profitability over the analyzed period.

Depreciation, amortization, and other non-cash expenses showed variability, with a notable increase from $12.8 billion in 2023 to $34.2 billion in 2025, suggesting expanding capital investments or changes in asset base valuation.

Stock-based compensation steadily increased from $5.3 billion in 2020 to $12.0 billion in 2025, reflecting ongoing employee incentive programs and potential growth in workforce or compensation levels.

There is volatility in net recognized gains and losses on investments and derivatives, moving from slight gains to a small loss in 2020, then showing gains again in 2024 and 2025, which may influence overall income through varying investment performance.

Deferred income taxes exhibit negative values across the years, with particularly sharp declines in 2022 and 2025, signaling possible deferred tax liabilities or changes in tax positions affecting future tax payments.

Working capital components such as accounts receivable and other current assets largely reflect reductions with some fluctuations, for example, accounts receivable decreased substantially in 2025 compared to previous years, indicating improved collections or changes in sales terms.

Inventories showed instability, with negative values in 2021 and 2022 turning positive thereafter, which may imply adjustments in inventory management or stock levels correlating with operational demand fluctuations.

Accounts payable and other current liabilities display mixed trends, with accounts payable showing both increases and decreases, including a significant drop in 2023, which may indicate changes in payment policies or vendor relations.

Unearned revenue increased steadily until 2023 and then stabilized, suggesting growth in prepaid customer contracts or advances impacting revenue recognition.

Operating cash flow grew consistently from about $60.7 billion in 2020 to $136.2 billion in 2025, highlighting strong cash generation capabilities supporting ongoing operations and investments.

Investing activities, particularly additions to property and equipment, escalated sharply to $64.6 billion by 2025, indicating significant capital expenditure and expansion efforts. Acquisitions also peaked notably in 2024 with $69.1 billion spent, showing aggressive strategic growth through purchases.

Purchases of investments varied but remained substantial across the years, while maturities and sales of investments fluctuate, implicating active portfolio management.

Financing activities reveal consistent net cash outflows, predominantly due to common stock repurchases and dividends paid, which have increased steadily, reflecting shareholder return policies. Debt issuance and repayments appear variable, with an unusual spike in debt issuance in 2024 and lower levels in other years, showing responsive capital structure management.

Cash and cash equivalents experienced significant volatility, notably a large increase in 2023 followed by a sharp decline in 2024, aligning with the large investing and financing cash flows observed during these years. Ending cash balances remain healthy despite fluctuations.

Foreign exchange effects on cash flows are minor and mostly negative except for a small positive impact in 2025, indicating limited currency translation risk or exposure.

Overall, the data suggests a company prioritizing profitability growth and cash flow generation while investing heavily in capital expenditures and acquisitions, accompanied by robust shareholder returns through repurchases and dividends. The financial management appears dynamic, responding to operational and strategic needs over time.

Download chart

Microsoft Corp. (NASDAQ:MSFT)

Cash Flow Statement