Microsoft Financial Performance from Time to Time

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 2022, 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 2021, 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 2021

YearsAssetsLiabilitiesEquities
Million Million Million
US Dollars US Dollars US Dollars
2021333,779191,791141,988
2020301,311183,007118,304
2019286,556184,226102,330
2018258,848176,13082,718
2017241,086168,69272,394
2016193,468121,47171,,997
2015174,30394,22080,083
2014170,56980,78589,784
2013140,89061,94678,944
2012121,27154,90866,363
2011108,70451,62157,083
201086,11339,93846,175
200977,88838,33039,558
200872,79336,50736,286
200763,17132,07431,097
200669,59729,49340,104
200570,81522,70048,115
200494,36819,54374,825
200379,57118,55161,020
200267,64615,46652,180
200158,83011,54147,289
200051,69410,32641,368
199938,3219,88328,438
Source : Microsoft Annual Report, 1999-2021


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 2021. Its data was obtained from the Annual report of Microsoft from 1999 to 2021. In 1999, the asset of Microsoft is just 38 billion US. Dollar and in 2021, their assets grew into 333 billion US. Dollar. It has increased more than nine times.

Microsoft Financial Performance from Time to Time- The Assets, Equitites, and Liabilities of Micrososft

The liabilities of Microsoft also rise from time to time. In 1999, the liabilities were just 9.8 billion US. Dollars and in 2021, their liabilities increased to 191 billion US. Dollars. The increase of liabilities reached twenty times from 1999 to 2021.


Table of Revenue and Income of Microsoft from 1999 to 2021

YearsRevenueNet income
Million US Dollars Million US Dollars
2021168,08861,271
2020143,01544,281
2019125,84339,240
2018110,36016,571
201796,57125,489
201685,32016,798
201593,58012,193
201486,83322,074
201377,84921,863
201273,72316,978
201169,94323,150
201062,48418,760
200958,43714,569
200860,42017,681
200751,12214,065
200644,28212,599
200539,78812,254
200436,8358,168
200318,970 9,993 
200216,455 7,829 
200113,576 7,346 
200022,9569,421
199919,7477,786
Source : Microsoft Annual Report, 1999-2021


In the different variables, Microsoft also experiences a satisfactory performance from 1999 to 2021. They always generate net income. In 1999, the revenue of Microsoft was just 19 billion US. Dollars with net income reached 7 billion US. Dollars. Meanwhile, in 2021, It grows steadily. The revenue of Microsoft achieved 168 billion US. Dollars and Net income reached 61 billion US. Dollars. The positive performance of Microsoft showed that this company is still on the right track.

Microsoft Financial Performance from Time to Time- The Revenue and Net Income 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 2021 is around 0.966. This value means that every one dollar of Equity equivalent with
equivalent to 0.9 dollars of liabilities. Meanwhile, in the Debt to Assets ratio (DAR), the average value of Microsoft is around 0.4. This means that the 1 US Dollar Assets equivalent to 0.4 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 2021. It means that 30% of revenue becomes net profit, or every 1 dollar of revenue can become 0.3 dollars of profit/ net income.

Microsoft Financial Performance From Time to Time - The Financial Ratio of Debt to Equity Ratio (DER), Debt to Asset Ratio (DAR), and Net Profit Margin (NPM)

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. 2022. Annual Report. Accessed via https://www.microsoft.com/en-us/Investor/annual-reports.aspx   on March 2nd, 2022.

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