Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

Analysis of Reportable Segments 

Microsoft Excel

Segment Profit Margin

Microsoft Corp., profit margin by reportable segment

Microsoft Excel
Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017
Productivity and Business Processes 46.85% 45.17% 40.36% 39.40% 36.04% 39.13%
Intelligent Cloud 43.48% 43.49% 37.89% 35.71% 35.77% 33.30%
More Personal Computing 35.16% 35.94% 32.98% 28.05% 25.10% 21.38%

Based on: 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).

Segment profitability ratio Reportable segment The company
Segment profit margin Productivity and Business Processes Productivity and Business Processes segment profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Intelligent Cloud Intelligent Cloud segment profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
More Personal Computing More Personal Computing segment profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Segment Profit Margin: Productivity and Business Processes

Microsoft Corp.; Productivity and Business Processes; segment profit margin calculation

Microsoft Excel
Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017
Selected Financial Data (US$ in millions)
Operating income 29,687 24,351 18,724 16,219 12,924 11,913
Revenue 63,364 53,915 46,398 41,160 35,865 30,444
Segment Profitability Ratio
Segment profit margin1 46.85% 45.17% 40.36% 39.40% 36.04% 39.13%

Based on: 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).

1 2022 Calculation
Segment profit margin = 100 × Operating income ÷ Revenue
= 100 × 29,687 ÷ 63,364 = 46.85%

Segment profitability ratio Reportable segment The company
Segment profit margin Productivity and Business Processes Productivity and Business Processes segment profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

Segment Profit Margin: Intelligent Cloud

Microsoft Corp.; Intelligent Cloud; segment profit margin calculation

Microsoft Excel
Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017
Selected Financial Data (US$ in millions)
Operating income 32,721 26,126 18,324 13,920 11,524 9,138
Revenue 75,251 60,080 48,366 38,985 32,219 27,440
Segment Profitability Ratio
Segment profit margin1 43.48% 43.49% 37.89% 35.71% 35.77% 33.30%

Based on: 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).

1 2022 Calculation
Segment profit margin = 100 × Operating income ÷ Revenue
= 100 × 32,721 ÷ 75,251 = 43.48%

Segment profitability ratio Reportable segment The company
Segment profit margin Intelligent Cloud Intelligent Cloud segment profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Segment Profit Margin: More Personal Computing

Microsoft Corp.; More Personal Computing; segment profit margin calculation

Microsoft Excel
Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017
Selected Financial Data (US$ in millions)
Operating income 20,975 19,439 15,911 12,820 10,610 8,288
Revenue 59,655 54,093 48,251 45,698 42,276 38,773
Segment Profitability Ratio
Segment profit margin1 35.16% 35.94% 32.98% 28.05% 25.10% 21.38%

Based on: 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).

1 2022 Calculation
Segment profit margin = 100 × Operating income ÷ Revenue
= 100 × 20,975 ÷ 59,655 = 35.16%

Segment profitability ratio Reportable segment The company
Segment profit margin More Personal Computing More Personal Computing segment profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Revenue

Microsoft Corp., revenue by reportable segment

US$ in millions

Microsoft Excel
Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017
Productivity and Business Processes 63,364 53,915 46,398 41,160 35,865 30,444
Intelligent Cloud 75,251 60,080 48,366 38,985 32,219 27,440
More Personal Computing 59,655 54,093 48,251 45,698 42,276 38,773
Corporate and Other (6,707)
Total 198,270 168,088 143,015 125,843 110,360 89,950

Based on: 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).


Operating income

Microsoft Corp., operating income by reportable segment

US$ in millions

Microsoft Excel
Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017
Productivity and Business Processes 29,687 24,351 18,724 16,219 12,924 11,913
Intelligent Cloud 32,721 26,126 18,324 13,920 11,524 9,138
More Personal Computing 20,975 19,439 15,911 12,820 10,610 8,288
Corporate and Other (7,013)
Total 83,383 69,916 52,959 42,959 35,058 22,326

Based on: 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).