Microsoft Financial Performance from Time to Time
Microsoft Financial Performance from Time to Time- Microsoft is one of the most popular technology companies in the world along with Alphabet, Amazon, Apple, and Meta (Facebook). Since it is founded on April 4th, 1975, by Bill Gates and Paul Allen, this company has led the revolution of technologies. Formally, this company provides software, services, devices, and solutions. Most people in the world know this company. Some of their products can be recognized by some people in the world. Microsoft Office and Windows operating system are some of the popular products from this company. Many people used their products. At present, some people still used Microsoft products in daily activities.
Bill Gates as the founder influenced the enormous impact of the development of Microsoft. After more than 20 years as the CEO of Microsoft, Bill can guide this company into a glorious era. He directs the company with innovative software products. After Bill Gates and Steve Ballmer stepped down as the CEO, Microsoft believed in Satya Nadella to lead the company. So far, Satya can keep the consistency of the Microsoft Business and develop some products of Microsoft. Nowadays, in 2023, this company has more than 150 thousand employees across the world. As a major corporation, Microsoft takes over some companies to strengthen its core business. These companies are Skype Technologies, Great Plains Software, Titus Communications, Nokia mobile units, Hotmail, and others.
Based on the Annual report of Microsoft from 1999 to 2023, Microsoft’s performance showed up and downtrend because of the global economy. Although they experience fluctuated performance, Microsoft still gets a profit from time to time. With some competitors and various challenges, Microsoft strives to optimize their business of technology. Some products launched by Microsoft has been criticized by its customer, namely Windows Longhorn, but they can repair that system, so the customer still trust their products.
Table of Assets, Liabilities, and Equities of Microsoft from 1999 to 2023
| Years | Assets | Liabilities | Equities |
|---|---|---|---|
| Million | Million | Million | |
| US Dollars | US Dollars | US Dollars | |
2023 2022 | 411,976 364,840 | 205,753 198,298 | 206,223 166,542 |
| 2021 | 333,779 | 191,791 | 141,988 |
| 2020 | 301,311 | 183,007 | 118,304 |
| 2019 | 286,556 | 184,226 | 102,330 |
| 2018 | 258,848 | 176,130 | 82,718 |
| 2017 | 241,086 | 168,692 | 72,394 |
| 2016 | 193,468 | 121,471 | 71,997 |
| 2015 | 174303 | 94,220 | 80,083 |
| 2014 | 170,569 | 80,785 | 89,784 |
| 2013 | 140,890 | 61,946 | 78,944 |
| 2012 | 121,271 | 54,908 | 66,363 |
| 2011 | 108,704 | 51,621 | 57,083 |
| 2010 | 86,113 | 39,938 | 46,175 |
| 2009 | 77,888 | 38,330 | 39,558 |
| 2008 | 72,793 | 36,507 | 36,286 |
| 2007 | 63,171 | 32,074 | 31,097 |
| 2006 | 69,597 | 29,493 | 40,104 |
| 2005 | 70,815 | 22,700 | 48,115 |
| 2004 | 94,368 | 19,543 | 74,825 |
| 2003 | 79,571 | 18,551 | 61,020 |
| 2002 | 67,646 | 15,466 | 52,180 |
| 2001 | 58,830 | 11,541 | 47,289 |
| 2000 | 51,694 | 10,326 | 41,368 |
| 1999 | 38,321 | 9,883 | 28,438 |
Source : Microsoft Annual Report, 1999-2023 | |||
With the good of business performance from time to time, it affects Microsoft’s financial performance from time to time. They can generate more cash. One of the indicators comes from the Balance Sheet to know the financial position of the company. Here are the descriptions of the assets, liabilities, and equities of Microsoft from 1999 to 2023. the data were obtained from the Annual report of Microsoft from 1999 to 2023. In 1999, the asset of Microsoft is just 38 billion US. Dollar and in 2023, their assets grew into 411 billion US. Dollar. It has increased more than nine times.
The liabilities of Microsoft also rise from time to time. In 1999, the liabilities were just 9.8 billion US. Dollars and in 2022, their liabilities increased to 198 billion US. Dollars. The increase of liabilities reached twenty times from 1999 to 2022.
Table of Revenue and Income of Microsoft from 1999 to 2023
| Years | Revenue | Net income | Net Profit Margin |
|---|---|---|---|
| Million US Dollars | Million US Dollars | ||
2023 2022 | 211,915 198,270 | 72,361 72,738 | 0.341 0.367 |
| 2021 | 168,088 | 61,271 | 0.365 |
| 2020 | 143,015 | 44,281 | 0.310 |
| 2019 | 125,843 | 39,240 | 0.312 |
| 2018 | 110,360 | 16,571 | 0.150 |
| 2017 | 96,571 | 25,489 | 0.264 |
| 2016 | 85,320 | 16,798 | 0.197 |
| 2015 | 93,580 | 12,193 | 0.130 |
| 2014 | 86,833 | 22,074 | 0.254 |
| 2013 | 77,849 | 21,863 | 0.281 |
| 2012 | 73,723 | 16,978 | 0.230 |
| 2011 | 69,943 | 23,150 | 0.331 |
| 2010 | 62,484 | 18,760 | 0.300 |
| 2009 | 58,437 | 14,569 | 0.249 |
| 2008 | 60,420 | 17,681 | 0.293 |
| 2007 | 51,122 | 14,065 | 0.275 |
| 2006 | 44,282 | 12,599 | 0.285 |
| 2005 | 39,788 | 12,254 | 0.308 |
| 2004 | 36,835 | 8,168 | 0.222 |
| 2003 | 18,970 | 9,993 | 0.527 |
| 2002 | 16455 | 7,829 | 0.476 |
| 2001 | 13,576 | 7,346 | 0.541 |
| 2000 | 22,956 | 9,421 | 0.410 |
| 1999 | 19,747 | 7,786 | 0.394 |
Source : Microsoft Annual Report, 1999-2023 | |||
In the different variables, Microsoft also experiences a satisfactory performance from 1999 to 2023. Microsoft consistently generated net income. In 1999, the revenue of Microsoft was just 19 billion US. dollars with net income reached 7 billion US. Dollars. Meanwhile, in 2023, It grows steadily. The revenue of Microsoft achieved 211 billion US. Dollars and net income reached 72 billion US. Dollars. The positive performance of Microsoft showed that this company is still on the right track.
.jpg "Debt-to-equity Ratio, Debt to Assets Ratio, and Net Profit Margin of Microsoft")
Based on the of Financial Ratio from the Balance Sheet and Income Statements, Microsoft showed some constant value. Based on the Debt to Equity ratio (DER), the average value of Microsoft from 1999 to 2023 is around 0.976. This value means that every one dollar of Equity equivalent with equivalent to 0.97 dollars of liabilities. Meanwhile, in the Debt to Assets ratio (DAR), the average value of Microsoft is around 0.45. This means that the 1 US Dollar Assets equivalent to 0.45 or, every 1 dollar asset contains 0.4 dollar liabilities. Based on the performance of the business, the average net profit margin ratio (NPM) is around 0.3 from 1999 to 2023. It means that 31% of revenue becomes net profit, or every 1 dollar of revenue can become 0.3 dollars of profit/ net income.
Microsoft is one of the technology companies that can keep its performance. After the resignation of Bill Gates, Microsoft still can maintain a positive financial performance. With Windows Operating System and Microsoft Office that still be used by more people in the world during new applications.
Bibliography of Microsoft Financial Performance from Time to Time
Microsoft. 2024. Annual Report. Accessed via https://www.microsoft.com/en-us/Investor/annual-reports.aspx on March 2nd, 2024.