Microsoft Stock Probability Of Bankruptcy

MSFT Stock  USD 420.72  0.71  0.17%   
Microsoft's threat of distress is less than 3% at this time. It is unlikely to undergo any financial hardship in the next 24 months. Bankruptcy prediction helps decision makers evaluate Microsoft's chance of financial distress in relation to its going-concern outlook and evaluation. All items used in analyzing the odds of distress are taken from the Microsoft balance sheet, as well as cash flow and income statements available from the company's most recent filings. Check out Microsoft Piotroski F Score and Microsoft Altman Z Score analysis.
For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.
  

Microsoft Probability Of Bankruptcy Analysis

Microsoft's Probability Of Bankruptcy is a relative measure of the likelihood of financial distress. For stocks, the Probability Of Bankruptcy is the normalized value of Z-Score. For funds and ETFs, it is derived from a multi-factor model developed by Macroaxis. The score is used to predict the probability of a firm or a fund experiencing financial distress within the next 24 months. Unlike Z-Score, Probability Of Bankruptcy is the value between 0 and 100, indicating the firm's actual probability it will be financially distressed in the next 2 fiscal years.
 2021 2022 2023 2024 (projected)
Capital Expenditures23.9B28.1B32.3B33.9B
Depreciation14.5B13.9B15.9B16.7B

Probability Of Bankruptcy

 = 

Normalized

Z-Score

More About Probability Of Bankruptcy | All Equity Analysis

Current Microsoft Probability Of Bankruptcy

    
  Less than 3%  
Most of Microsoft's fundamental indicators, such as Probability Of Bankruptcy, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Microsoft is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Our calculation of Microsoft probability of bankruptcy is based on Altman Z-Score and Piotroski F-Score, but not limited to these measures. To be applied to a broader range of industries and markets, we use several other techniques to enhance the accuracy of predicting Microsoft odds of financial distress. These include financial statement analysis, different types of price predictions, earning estimates, analysis consensus, and basic intrinsic valuation. Please use the options below to get a better understanding of different measures that drive the calculation of Microsoft financial health.
Is Microsoft's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Microsoft. If investors know Microsoft will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Microsoft listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.332
Dividend Share
2.86
Earnings Share
11.06
Revenue Per Share
30.612
Quarterly Revenue Growth
0.176
The market value of Microsoft is measured differently than its book value, which is the value of Microsoft that is recorded on the company's balance sheet. Investors also form their own opinion of Microsoft's value that differs from its market value or its book value, called intrinsic value, which is Microsoft's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Microsoft's market value can be influenced by many factors that don't directly affect Microsoft's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Microsoft's value and its price as these two are different measures arrived at by different means. Investors typically determine if Microsoft is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Microsoft's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Microsoft Probability Of Bankruptcy Driver Correlations

Understanding the fundamental principles of building solid financial models for Microsoft is extremely important. It helps to project a fair market value of Microsoft Stock properly, considering its historical fundamentals such as Probability Of Bankruptcy. Since Microsoft's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Microsoft's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Microsoft's interrelated accounts and indicators.
0.990.960.360.90.990.96-0.660.960.930.90.940.210.890.970.730.380.930.990.970.980.550.650.84-0.44-0.29-0.720.850.81-0.550.79
0.990.970.280.920.990.97-0.680.930.90.90.960.130.870.980.710.310.950.980.960.980.470.590.87-0.52-0.26-0.70.860.83-0.590.8
0.960.970.080.970.990.98-0.710.850.820.950.970.070.80.970.670.140.960.970.90.950.290.420.96-0.49-0.08-0.570.850.87-0.70.87
0.360.280.08-0.050.220.120.050.60.60.010.10.570.530.230.40.910.090.310.420.30.960.9-0.180.13-0.71-0.670.15-0.040.35-0.12
0.90.920.97-0.050.940.98-0.780.760.690.960.99-0.050.720.940.5-0.060.980.920.860.930.170.320.97-0.56-0.06-0.50.870.91-0.780.92
0.990.990.990.220.940.98-0.710.910.880.920.970.090.850.990.70.250.950.980.950.980.410.540.9-0.53-0.22-0.650.870.85-0.630.83
0.960.970.980.120.980.98-0.750.860.80.950.990.070.780.970.60.120.990.970.930.970.320.460.94-0.54-0.18-0.630.890.89-0.690.88
-0.66-0.68-0.710.05-0.78-0.71-0.75-0.57-0.43-0.77-0.780.15-0.56-0.68-0.310.2-0.8-0.68-0.71-0.74-0.15-0.28-0.690.460.170.38-0.69-0.750.71-0.76
0.960.930.850.60.760.910.86-0.570.970.780.840.330.920.90.720.580.830.940.960.930.750.830.67-0.36-0.48-0.820.780.69-0.370.65
0.930.90.820.60.690.880.8-0.430.970.740.770.40.880.850.810.670.750.910.90.860.740.790.64-0.28-0.38-0.780.690.6-0.280.57
0.90.90.950.010.960.920.95-0.770.780.740.950.030.720.880.530.020.960.910.860.90.250.370.94-0.47-0.1-0.50.810.86-0.660.9
0.940.960.970.10.990.970.99-0.780.840.770.950.050.780.970.560.080.990.960.910.970.30.440.94-0.53-0.17-0.590.890.9-0.730.89
0.210.130.070.57-0.050.090.070.150.330.40.030.050.20.110.360.630.00.230.150.090.510.45-0.050.54-0.01-0.390.050.020.030.01
0.890.870.80.530.720.850.78-0.560.920.880.720.780.20.860.70.50.760.880.880.890.690.750.61-0.22-0.32-0.70.70.63-0.460.6
0.970.980.970.230.940.990.97-0.680.90.850.880.970.110.860.680.250.940.980.940.980.410.540.89-0.51-0.2-0.670.880.85-0.660.82
0.730.710.670.40.50.70.6-0.310.720.810.530.560.360.70.680.630.520.70.660.650.550.610.51-0.17-0.06-0.580.670.61-0.280.52
0.380.310.140.91-0.060.250.120.20.580.670.020.080.630.50.250.630.050.320.390.270.890.83-0.120.15-0.49-0.620.16-0.010.37-0.1
0.930.950.960.090.980.950.99-0.80.830.750.960.990.00.760.940.520.050.940.920.960.30.450.93-0.57-0.21-0.580.890.9-0.70.89
0.990.980.970.310.920.980.97-0.680.940.910.910.960.230.880.980.70.320.940.950.980.490.60.87-0.38-0.23-0.680.840.83-0.630.82
0.970.960.90.420.860.950.93-0.710.960.90.860.910.150.880.940.660.390.920.950.970.60.710.77-0.52-0.43-0.790.830.77-0.480.75
0.980.980.950.30.930.980.97-0.740.930.860.90.970.090.890.980.650.270.960.980.970.490.620.85-0.51-0.32-0.690.880.85-0.620.82
0.550.470.290.960.170.410.32-0.150.750.740.250.30.510.690.410.550.890.30.490.60.490.980.030.0-0.7-0.740.360.190.20.12
0.650.590.420.90.320.540.46-0.280.830.790.370.440.450.750.540.610.830.450.60.710.620.980.17-0.15-0.71-0.80.530.360.080.27
0.840.870.96-0.180.970.90.94-0.690.670.640.940.94-0.050.610.890.51-0.120.930.870.770.850.030.17-0.520.09-0.40.80.87-0.770.9
-0.44-0.52-0.490.13-0.56-0.53-0.540.46-0.36-0.28-0.47-0.530.54-0.22-0.51-0.170.15-0.57-0.38-0.52-0.510.0-0.15-0.520.390.32-0.59-0.520.16-0.44
-0.29-0.26-0.08-0.71-0.06-0.22-0.180.17-0.48-0.38-0.1-0.17-0.01-0.32-0.2-0.06-0.49-0.21-0.23-0.43-0.32-0.7-0.710.090.390.52-0.22-0.03-0.380.04
-0.72-0.7-0.57-0.67-0.5-0.65-0.630.38-0.82-0.78-0.5-0.59-0.39-0.7-0.67-0.58-0.62-0.58-0.68-0.79-0.69-0.74-0.8-0.40.320.52-0.6-0.480.14-0.41
0.850.860.850.150.870.870.89-0.690.780.690.810.890.050.70.880.670.160.890.840.830.880.360.530.8-0.59-0.22-0.60.97-0.610.88
0.810.830.87-0.040.910.850.89-0.750.690.60.860.90.020.630.850.61-0.010.90.830.770.850.190.360.87-0.52-0.03-0.480.97-0.750.96
-0.55-0.59-0.70.35-0.78-0.63-0.690.71-0.37-0.28-0.66-0.730.03-0.46-0.66-0.280.37-0.7-0.63-0.48-0.620.20.08-0.770.16-0.380.14-0.61-0.75-0.79
0.790.80.87-0.120.920.830.88-0.760.650.570.90.890.010.60.820.52-0.10.890.820.750.820.120.270.9-0.440.04-0.410.880.96-0.79
Click cells to compare fundamentals
The Probability of Bankruptcy SHOULD NOT be confused with the actual chance of a company to file for chapter 7, 11, 12, or 13 bankruptcy protection. Macroaxis simply defines Financial Distress as an operational condition where a company is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from both public financial statements as well as analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors taken into account include analysis of liquidity, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
Competition

Based on the latest financial disclosure, Microsoft has a Probability Of Bankruptcy of 3.0%. This is 92.59% lower than that of the Software sector and significantly higher than that of the Information Technology industry. The probability of bankruptcy for all United States stocks is 92.47% higher than that of the company.

Microsoft Probability Of Bankruptcy Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Microsoft's direct or indirect competition against its Probability Of Bankruptcy to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Microsoft could also be used in its relative valuation, which is a method of valuing Microsoft by comparing valuation metrics of similar companies.
Microsoft is currently under evaluation in probability of bankruptcy category among related companies.

Microsoft Main Bankruptcy Drivers

201920202021202220232024 (projected)
Net Debt57.4B53.6B47.3B25.3B29.1B30.5B
Total Current Liabilities72.3B88.7B95.1B104.1B119.8B125.8B
Non Current Liabilities Total110.7B103.1B103.2B101.6B116.8B122.7B
Total Assets301.3B333.8B364.8B412.0B473.8B497.5B
Total Current Assets181.9B184.4B169.7B184.3B211.9B222.5B
Total Cash From Operating Activities60.7B76.7B89.0B87.6B100.7B105.8B

Microsoft ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Microsoft's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Microsoft's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Microsoft Fundamentals

About Microsoft Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Microsoft's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Microsoft using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Microsoft based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Microsoft Corporation was founded in 1975 and is headquartered in Redmond, Washington. Microsoft Corp operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 221000 people.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect
When determining whether Microsoft is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Microsoft Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Microsoft Stock. Highlighted below are key reports to facilitate an investment decision about Microsoft Stock:
Check out Microsoft Piotroski F Score and Microsoft Altman Z Score analysis.
For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.
Note that the Microsoft information on this page should be used as a complementary analysis to other Microsoft's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Complementary Tools for Microsoft Stock analysis

When running Microsoft's price analysis, check to measure Microsoft's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Microsoft is operating at the current time. Most of Microsoft's value examination focuses on studying past and present price action to predict the probability of Microsoft's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Microsoft's price. Additionally, you may evaluate how the addition of Microsoft to your portfolios can decrease your overall portfolio volatility.
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
CEOs Directory
Screen CEOs from public companies around the world
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Is Microsoft's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Microsoft. If investors know Microsoft will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Microsoft listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.332
Dividend Share
2.86
Earnings Share
11.06
Revenue Per Share
30.612
Quarterly Revenue Growth
0.176
The market value of Microsoft is measured differently than its book value, which is the value of Microsoft that is recorded on the company's balance sheet. Investors also form their own opinion of Microsoft's value that differs from its market value or its book value, called intrinsic value, which is Microsoft's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Microsoft's market value can be influenced by many factors that don't directly affect Microsoft's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Microsoft's value and its price as these two are different measures arrived at by different means. Investors typically determine if Microsoft is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Microsoft's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.