Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

$24.99

Net Profit Margin
since 2005

Microsoft Excel

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Calculation

Microsoft Corp., net profit margin, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).

1 US$ in millions


The financial data over the examined periods reveals several significant patterns and trends. Revenue generally shows a consistent upward trajectory, increasing markedly from approximately 39.8 billion US dollars in mid-2005 to about 245.1 billion US dollars by mid-2024. This indicates sustained growth in the company's scale and market reach over the 20-year span.

Net income also generally increases, but with notable fluctuations in certain years. Starting from around 12.3 billion US dollars in mid-2005, net income rose to a peak of approximately 88.1 billion US dollars by mid-2024. However, there are visible periods of volatility where net income declined or did not align proportionally with revenue growth. For example, a decline is observed around mid-2011 to mid-2012, and a marked dip in net income is seen in mid-2014 relative to the previous year.

The net profit margin percentage fluctuates significantly throughout the period analyzed. It begins high at approximately 30.8% in mid-2005, experiences some declines and recoveries, reaching a low of around 13.03% in mid-2014, and subsequently recovers to levels above 35% by the mid-2020s. This volatility suggests periods of varying operational efficiency, cost management, or changes in the product portfolio and market conditions affecting profitability differently than revenue alone.

Revenue Trend
Steady, substantial growth with an increase of over six times from 2005 to 2024, reflecting strong top-line expansion.
Net Income Trend
Overall upward progression with substantial increases, though interspersed with declines and slower growth intervals, indicating fluctuating profitability after costs and expenses.
Net Profit Margin Trend
Fluctuating profit margins suggest variation in profitability efficiency, with highs in the early and later periods and a considerable dip around 2014.
Significant Observations
  • Mid-2014 stands out for a notably low net income and margin despite relatively steady revenue, signaling a potential adverse event or increased costs during that period.
  • The later years, especially from 2020 onward, show robust profit margins aligned with higher net income, suggesting improvements in operational efficiency or premium product/service mix.
  • The correlation between net income and revenue is positive but subject to interruptions caused by margin variability, indicating the importance of cost control and operational factors beyond revenue growth.

Comparison to Competitors

Microsoft Corp., net profit margin, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).


Comparison to Sector (Software & Services)


Comparison to Industry (Information Technology)

Microsoft Corp., net profit margin, long-term trends, comparison to industry (information technology)

Microsoft Excel

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), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).