Microsoft Corporation (MSFT)

Business overview

The company demonstrates strong operational efficiency with a gross margin of 67.9% and an operating margin of 46.8%. Microsoft also converts revenue into cash effectively, recording a free cash flow margin of 20.2%. These robust metrics align with its high Financial Quality pillar score of 85.

Financial health

The Balance Sheet pillar is scored moderately at 55, while the Risk pillar receives a maximum score of 100. Specific debt levels and liquidity ratios are unavailable in the dataset, leaving some uncertainty regarding total leverage. Nonetheless, ongoing cash generation is indicated by a 20.2% free cash flow margin.

Gross Margin

67.9%

Operating Margin

46.8%

Current Ratio

1.2x

Debt / Equity

0.07

Free Cash Flow (TTM)

$67.0B

Interest Coverage

Data unavailable

Valuation

MSFT is valued at a P/E ratio of 13.39, a P/S ratio of 5.22, and a free cash flow yield of 4.2%, contributing to a Valuation pillar score of 77. The EV to EBITDA ratio is unavailable in the provided data. These valuation multiples provide baseline context, though comparative sector benchmarks are not supplied.

P/E (TTM)

13.4x

Forward P/E

Data unavailable

Price / Sales

5.2x

EV / EBITDA

Data unavailable

FCF Yield

4.2%

Key risks

• Elevated RSI of 84.77 indicates technically overbought conditions.
• Balance Sheet pillar score of 55 reflects moderate balance sheet metrics.
• Valuation data is incomplete due to unavailable EV to EBITDA metrics.