Week one:Identifying Financial Information for Microsoft Corporation

Company: Microsoft Corporation

Ticker Symbol: MSFT

Key Performance Indicators

1. Cash Flow from Operations:
   • In the latest report, Microsoft demonstrated strong cash flow from operations, amounting to $73.5 billion.
2. Price-to-Earnings Ratio:
   • As of February 18, 2023, Microsoft's P/E ratio stands at 41.56, reflecting the market's anticipation of future growth.
3. Stock Dividends and Yield:
   • Microsoft distributes a quarterly dividend of $0.62 per share, resulting in an annual yield of 0.8%, providing consistent returns to shareholders.
4. Earnings per Share Ratio:
   • In 2021, Microsoft's earnings per share were $9.09, indicating profitability per share.
5. Revenue Estimates for the Next 12 Months:
   • Analysts estimate Microsoft's revenue to reach $182.39 billion over the next 12 months, showcasing optimism about the company's growth.

Explanation:

Cash Flow from Operations: This metric reveals the cash generated from regular business activities. Microsoft's substantial cash flow of $73.5 billion demonstrates its robust financial health and strong cash generation capabilities.

Price-to-Earnings (P/E) Ratio: The P/E ratio is a measure of how investors value a company's earnings. Microsoft's P/E ratio of 41.56 suggests that the market expects significant future growth potential for the company.

Stock Dividends and Yield: Microsoft's consistent quarterly dividend of $0.62 per share and an annual yield of 0.8% illustrate its commitment to returning value to its shareholders.

Earnings per Share (EPS) Ratio: EPS represents profitability per share. Microsoft's reported EPS of $9.09 in 2021 indicates a healthy level of profitability.

Revenue Estimates: Analysts' projected revenue of $182.39 billion for the next year signals positive sentiment regarding Microsoft's growth prospects.

Revenue from the Previous 3 Years:

2021: $168.1billion

2020: $143.015billion

2019: $125.843 Billion

Statement of Cash Flows:

• Net Cash from Operating Activities (2021): $73.5 billion
• Net Cash from Investing Activities (2021): -$29.2 billion
• Net Cash from Financing Activities (2021): -$25.3 billion

Average Trade Volume:

• Microsoft experiences an average trade volume of approximately 18.7 million shares per day, indicating active trading.

Current Stock Price, 52-Week High, and 1-Year Estimated Stock Price:

• As of February 18, 2023, Microsoft's stock metrics are as follows:
  • Current Stock Price: $337.97
  • 52-Week High: $353.50
  • 1-Year Estimated Stock Price: $374.20

Analysts' Recommendations:

• As of February 18, 2023, analysts' recommendations for Microsoft stock are:
  • Buy: 29
  • Hold: 5
  • Sell: 0
• These recommendations reflect a predominantly bullish sentiment among experts.

Market Cap:

• Microsoft's market capitalization currently stands at $2.52 trillion, underscoring its position as one of the world's most valuable companies and highlighting its dominance in the tech industry with substantial potential for future growth.

Homework Content

Continue your work with the company you selected in Week 1.

In preparation for the Week 4 Summative Assessment, research your companys financial reports from the past fiscal year, along with the market conditions from that same year.

In a 1- to 2-page chart, compare your companys current financial reports with the market conditions from the previous fiscal year. Focus on interest rates, Federal Reserve Bank monetary policy changes, or other market conditions relevant to the company you selected.

Submit your chart.