Microsoft Stock Z Score

MSFT Stock

USD 404.27 7.57 1.84%

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Check out Microsoft Piotroski F Score and Microsoft Valuation analysis.

For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.

At this time, Microsoft's Net Working Capital is comparatively stable compared to the past year. Capital Expenditures is likely to gain to about 33.9 B in 2024, whereas Capital Lease Obligations is likely to drop slightly above 9.8 B in 2024. At this time, Microsoft's Cost Of Revenue is comparatively stable compared to the past year. Total Operating Expenses is likely to gain to about 69.5 B in 2024, whereas Selling And Marketing Expenses is likely to drop slightly above 17.4 B in 2024.

Microsoft Company Z Score Analysis

Microsoft's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..

Z Score

Sum Of

5 Factors

More About Z Score | All Equity Analysis

First Factor

1.2 * (

Working Capital

/

Total Assets )

Second Factor

1.4 * (

Retained Earnings

/

Total Assets )

Thrid Factor

3.3 * (

EBITAD

/

Total Assets )

Fouth Factor

0.6 * (

Market Value of Equity

/

Total Liabilities )

Fifth Factor

0.99 * (

Revenue

/

Total Assets )

Microsoft Z Score 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 Z Score. 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.

	Total Assets	Total Stockholder Equity	Net Debt	Retained Earnings	Net Receivables	Total Liab	Total Current Assets	Cash And Equivalents	Property Plant Equipment	Short Term Debt	Intangible Assets	Accounts Payable	Common Stock	Short Term Investments	Current Deferred Revenue	Good Will	Long Term Debt	Long Term Debt Total	Net Tangible Assets	Deferred Long Term Liab	Long Term Investments	Short Long Term Debt	Capital Surpluse	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		0.96	0.36	0.9	0.99	0.96	0.93	0.9	0.94	0.21	0.89	0.97	0.73	0.38	0.99	0.98	0.55	0.65	0.84	-0.44	-0.29	-0.72	0.85	0.81	-0.55	0.79
Total Stockholder Equity	0.96		0.08	0.97	0.99	0.85	0.82	0.95	0.97	0.07	0.8	0.97	0.67	0.14	0.97	0.95	0.29	0.42	0.96	-0.49	-0.08	-0.57	0.85	0.87	-0.7	0.87
Net Debt	0.36	0.08		-0.05	0.22	0.6	0.6	0.01	0.1	0.57	0.53	0.23	0.4	0.91	0.31	0.3	0.96	0.9	-0.18	0.13	-0.71	-0.67	0.15	-0.04	0.35	-0.12
Retained Earnings	0.9	0.97	-0.05		0.94	0.76	0.69	0.96	0.99	-0.05	0.72	0.94	0.5	-0.06	0.92	0.93	0.17	0.32	0.97	-0.56	-0.06	-0.5	0.87	0.91	-0.78	0.92
Net Receivables	0.99	0.99	0.22	0.94		0.91	0.88	0.92	0.97	0.09	0.85	0.99	0.7	0.25	0.98	0.98	0.41	0.54	0.9	-0.53	-0.22	-0.65	0.87	0.85	-0.63	0.83
Total Liab	0.96	0.85	0.6	0.76	0.91		0.97	0.78	0.84	0.33	0.92	0.9	0.72	0.58	0.94	0.93	0.75	0.83	0.67	-0.36	-0.48	-0.82	0.78	0.69	-0.37	0.65
Total Current Assets	0.93	0.82	0.6	0.69	0.88	0.97		0.74	0.77	0.4	0.88	0.85	0.81	0.67	0.91	0.86	0.74	0.79	0.64	-0.28	-0.38	-0.78	0.69	0.6	-0.28	0.57
Cash And Equivalents	0.9	0.95	0.01	0.96	0.92	0.78	0.74		0.95	0.03	0.72	0.88	0.53	0.02	0.91	0.9	0.25	0.37	0.94	-0.47	-0.1	-0.5	0.81	0.86	-0.66	0.9
Property Plant Equipment	0.94	0.97	0.1	0.99	0.97	0.84	0.77	0.95		0.05	0.78	0.97	0.56	0.08	0.96	0.97	0.3	0.44	0.94	-0.53	-0.17	-0.59	0.89	0.9	-0.73	0.89
Short Term Debt	0.21	0.07	0.57	-0.05	0.09	0.33	0.4	0.03	0.05		0.2	0.11	0.36	0.63	0.23	0.09	0.51	0.45	-0.05	0.54	-0.01	-0.39	0.05	0.02	0.03	0.01
Intangible Assets	0.89	0.8	0.53	0.72	0.85	0.92	0.88	0.72	0.78	0.2		0.86	0.7	0.5	0.88	0.89	0.69	0.75	0.61	-0.22	-0.32	-0.7	0.7	0.63	-0.46	0.6
Accounts Payable	0.97	0.97	0.23	0.94	0.99	0.9	0.85	0.88	0.97	0.11	0.86		0.68	0.25	0.98	0.98	0.41	0.54	0.89	-0.51	-0.2	-0.67	0.88	0.85	-0.66	0.82
Common Stock	0.73	0.67	0.4	0.5	0.7	0.72	0.81	0.53	0.56	0.36	0.7	0.68		0.63	0.7	0.65	0.55	0.61	0.51	-0.17	-0.06	-0.58	0.67	0.61	-0.28	0.52
Short Term Investments	0.38	0.14	0.91	-0.06	0.25	0.58	0.67	0.02	0.08	0.63	0.5	0.25	0.63		0.32	0.27	0.89	0.83	-0.12	0.15	-0.49	-0.62	0.16	-0.01	0.37	-0.1
Current Deferred Revenue	0.99	0.97	0.31	0.92	0.98	0.94	0.91	0.91	0.96	0.23	0.88	0.98	0.7	0.32		0.98	0.49	0.6	0.87	-0.38	-0.23	-0.68	0.84	0.83	-0.63	0.82
Good Will	0.98	0.95	0.3	0.93	0.98	0.93	0.86	0.9	0.97	0.09	0.89	0.98	0.65	0.27	0.98		0.49	0.62	0.85	-0.51	-0.32	-0.69	0.88	0.85	-0.62	0.82
Long Term Debt	0.55	0.29	0.96	0.17	0.41	0.75	0.74	0.25	0.3	0.51	0.69	0.41	0.55	0.89	0.49	0.49		0.98	0.03	0.0	-0.7	-0.74	0.36	0.19	0.2	0.12
Long Term Debt Total	0.65	0.42	0.9	0.32	0.54	0.83	0.79	0.37	0.44	0.45	0.75	0.54	0.61	0.83	0.6	0.62	0.98		0.17	-0.15	-0.71	-0.8	0.53	0.36	0.08	0.27
Net Tangible Assets	0.84	0.96	-0.18	0.97	0.9	0.67	0.64	0.94	0.94	-0.05	0.61	0.89	0.51	-0.12	0.87	0.85	0.03	0.17		-0.52	0.09	-0.4	0.8	0.87	-0.77	0.9
Deferred Long Term Liab	-0.44	-0.49	0.13	-0.56	-0.53	-0.36	-0.28	-0.47	-0.53	0.54	-0.22	-0.51	-0.17	0.15	-0.38	-0.51	0.0	-0.15	-0.52		0.39	0.32	-0.59	-0.52	0.16	-0.44
Long Term Investments	-0.29	-0.08	-0.71	-0.06	-0.22	-0.48	-0.38	-0.1	-0.17	-0.01	-0.32	-0.2	-0.06	-0.49	-0.23	-0.32	-0.7	-0.71	0.09	0.39		0.52	-0.22	-0.03	-0.38	0.04
Short Long Term Debt	-0.72	-0.57	-0.67	-0.5	-0.65	-0.82	-0.78	-0.5	-0.59	-0.39	-0.7	-0.67	-0.58	-0.62	-0.68	-0.69	-0.74	-0.8	-0.4	0.32	0.52		-0.6	-0.48	0.14	-0.41
Capital Surpluse	0.85	0.85	0.15	0.87	0.87	0.78	0.69	0.81	0.89	0.05	0.7	0.88	0.67	0.16	0.84	0.88	0.36	0.53	0.8	-0.59	-0.22	-0.6		0.97	-0.61	0.88
Net Invested Capital	0.81	0.87	-0.04	0.91	0.85	0.69	0.6	0.86	0.9	0.02	0.63	0.85	0.61	-0.01	0.83	0.85	0.19	0.36	0.87	-0.52	-0.03	-0.48	0.97		-0.75	0.96
Net Working Capital	-0.55	-0.7	0.35	-0.78	-0.63	-0.37	-0.28	-0.66	-0.73	0.03	-0.46	-0.66	-0.28	0.37	-0.63	-0.62	0.2	0.08	-0.77	0.16	-0.38	0.14	-0.61	-0.75		-0.79
Capital Stock	0.79	0.87	-0.12	0.92	0.83	0.65	0.57	0.9	0.89	0.01	0.6	0.82	0.52	-0.1	0.82	0.82	0.12	0.27	0.9	-0.44	0.04	-0.41	0.88	0.96	-0.79

Click cells to compare fundamentals

To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.

Competition

Predict Microsoft

Based on the company's disclosures, Microsoft has a Z Score of 0.0. This is 100.0% lower than that of the Software sector and about the same as Information Technology (which currently averages 0.0) industry. The z score for all United States stocks is 100.0% higher than that of the company.

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 Institutional Holders

Institutional Holdings refers to the ownership stake in Microsoft that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Microsoft's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Microsoft's value.

		Shares
Capital Research & Mgmt Co - Division 3	2023-12-31	82.7 M
Capital Research Global Investors	2023-12-31	78.2 M
Northern Trust Corp	2023-12-31	77.8 M
Bank Of New York Mellon Corp	2023-12-31	68.1 M
Bank Of America Corp	2023-12-31	65.8 M
Wellington Management Company Llp	2023-12-31	62.1 M
Legal & General Group Plc	2023-12-31	61.8 M
Nuveen Asset Management, Llc	2023-12-31	53.1 M
Charles Schwab Investment Management Inc	2023-12-31	44.4 M
Vanguard Group Inc	2023-12-31	664.9 M
Blackrock Inc	2023-12-31	538.9 M

Microsoft Fundamentals

	Return On Equity	0.39
	Return On Asset	0.15
	Profit Margin	0.36 %
	Operating Margin	0.44 %
	Current Valuation	3.09 T
	Shares Outstanding	7.43 B
	Shares Owned By Insiders	0.05 %
	Shares Owned By Institutions	73.82 %
	Number Of Shares Shorted	55.77 M
	Price To Earning	26.64 X
	Price To Book	12.93 X
	Price To Sales	13.48 X
	Revenue	211.91 B
	Gross Profit	135.62 B
	EBITDA	105.16 B
	Net Income	72.36 B
	Cash And Equivalents	34.7 B
	Cash Per Share	14.39 X
	Total Debt	59.97 B
	Debt To Equity	0.44 %
	Current Ratio	1.84 X
	Book Value Per Share	32.06 X
	Cash Flow From Operations	87.58 B
	Short Ratio	2.60 X
	Earnings Per Share	11.07 X
	Price To Earnings To Growth	2.10 X
	Target Price	435.44
	Number Of Employees	221 K
	Beta	0.88
	Market Capitalization	3.07 T
	Total Asset	411.98 B
	Retained Earnings	118.85 B
	Working Capital	80.11 B
	Current Asset	139.66 B
	Current Liabilities	59.36 B
	Annual Yield	0.01 %
	Five Year Return	1.18 %
	Net Asset	411.98 B
	Last Dividend Paid	2.86

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.

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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:

How To Invest In Microsoft

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Is Microsoft Stock a good investment?

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What is Microsoft's Net Worth?

Details

Largest Systems Software Companies

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Largest Software - Infrastructure Companies

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Check out Microsoft Piotroski F Score and Microsoft Valuation 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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.

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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

11.07

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.

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Microsoft Stock Z Score

Microsoft Company Z Score Analysis

Z Score

Sum Of

5 Factors

First Factor

1.2 * (

Working Capital

/

Total Assets )

Second Factor

1.4 * (

Retained Earnings

/

Total Assets )

Thrid Factor

3.3 * (

EBITAD

/

Total Assets )

Fouth Factor

0.6 * (

Market Value of Equity

/

Total Liabilities )

Fifth Factor

0.99 * (

Revenue

/

Total Assets )

Microsoft Z Score Driver Correlations

Microsoft ESG Sustainability

Microsoft Institutional Holders

Microsoft Fundamentals

About Microsoft Fundamental Analysis

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

Complementary Tools for Microsoft Stock analysis

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