Stock Analysis on Net
Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

$24.99

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.

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Microsoft Corp., consolidated cash flow statement

US$ in millions

Microsoft Excel
12 months ended: Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Net income
Depreciation, amortization, and other
Stock-based compensation expense
Net recognized (gains) losses on investments and derivatives
Deferred income taxes
Accounts receivable
Inventories
Other current assets
Other long-term assets
Accounts payable
Unearned revenue
Income taxes
Other current liabilities
Other long-term liabilities
Changes in operating assets and liabilities
Adjustments to reconcile net income to net cash from operations
Net cash from operations
Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net
Proceeds from issuance of debt
Cash premium on debt exchange
Repayments of debt
Common stock issued
Common stock repurchased
Common stock cash dividends paid
Other, net
Net cash used in financing
Additions to property and equipment
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets
Purchases of investments
Maturities of investments
Sales of investments
Other, net
Net cash used in investing
Effect of foreign exchange rates on cash and cash equivalents
Net change in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period

Based on: 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), 10-K (reporting date: 2019-06-30).

Net Income
The net income demonstrates a generally increasing trend from 2019 to 2024, rising from $39,240 million in 2019 to $88,136 million in 2024, with a slight decline in 2023 compared to 2022. This indicates an overall improvement in profitability with some minor volatility.
Depreciation, Amortization, and Other
Depreciation and amortization expenses increased moderately between 2019 and 2022, followed by a notable jump in 2024 to $22,287 million, indicating increased capital expenditures or asset base expansion in recent periods.
Stock-Based Compensation Expense
There is a steady rise in stock-based compensation expense over the entire period, growing from $4,652 million in 2019 to $10,734 million in 2024, reflecting increased employee incentives or stock-based remuneration practices.
Net Recognized Gains/Losses on Investments and Derivatives
The figures fluctuate between gains and losses without a clear trend, with occasional small positive amounts in recent years, indicative of volatile but relatively minor impacts on overall financials from investment and derivative activities.
Deferred Income Taxes
Values are negative or near zero from 2020 onwards, suggesting consistent deferred tax liabilities or adjustments contributing negatively to net income adjustments.
Working Capital Components
Accounts Receivable
Generally negative changes indicate an increase in accounts receivable balances in 2021, 2022, and 2024, which could signal loosening credit terms or increased sales on credit.
Inventories
Fluctuates significantly, with negative values in 2021 and 2022 reversing to positive in 2023 and 2024, suggesting inventory management adjustments or shifts in production/supply chain.
Other Current Assets
These have consistently decreased over the periods, implying reduced prepayments or non-cash assets classified as current.
Accounts Payable
Generally positive with irregular negative value in 2023, indicating variable dynamics in payables management possibly involving supplier terms or payment timing.
Unearned Revenue
Shows a steady increase, suggesting growing advances or prepayments from customers.
Income Taxes
Varies significantly, with negative income tax impact in 2020, 2021, and 2023, indicating tax refunds or credits, while other years show positive tax expenses reflective of taxable income.
Other Liabilities
Other current liabilities increase notably in 2024, while long-term liabilities remain relatively stable, suggesting short-term obligations are rising.
Cash Flows from Operations
Net cash from operating activities shows a consistent upward trend, reaching $118,548 million in 2024, parallel with net income growth, highlighting strong operational cash generation capacity.
Financing Activities
Debt Transactions
Debt issuance appears only in 2024 with sizable proceeds, while repayments fluctuate yearly, peaking in magnitude in 2024, indicating active debt management.
Common Stock
Issuance gradually increased over time, while stock repurchases peaked in 2022 but declined thereafter. Despite repurchases, the company continues to issue stock, possibly balancing capital structure.
Dividends
Cash dividends steadily increase, reflecting ongoing return of capital to shareholders.
Net Cash Used in Financing
Remains negative throughout, consistent with debt repayments, share repurchases, and dividend payments exceeding inflows from stock issuance until 2024, when financing outflows lessen somewhat but remain significant.
Investing Activities
Additions to Property and Equipment
Capital expenditures rise consistently, more than tripling from 2019 to 2024, indicating aggressive investment in long-term assets.
Acquisitions and Other Purchases
Highly variable, with a peak in 2024, suggesting large-scale acquisitions or intangible asset purchases in that year.
Investment Transactions
Purchases of investments fluctuate, with a marked decline in 2024 compared to prior years; maturities and sales of investments vary but generally provide liquidity to offset some investing outflows.
Net Cash Used in Investing
Shows increased negative cash flow in 2024 compared to prior years, driven primarily by higher capital expenditures and acquisition payments, signifying aggressive expansion or asset growth strategy.
Cash Position
Cash and cash equivalents end the period with volatility, peaking in 2023 before decreasing substantially in 2024, aligned with heavy investing outflows and financing activities; the net change in cash correlates with these fluctuations.
Foreign Exchange Impact
Effects from foreign exchange rates are minimal and consistently negative, implying negligible influence on cash balances during the periods.