Microsoft Corporation cash flow to debt ratio of 105.71% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Microsoft Corporation's free cash flow has decreased 3.32% from $74.07B last year to $71.61B, signaling decreasing performance

Microsoft Corporation's debt to equity ratio is 0.29, which means that the company's assets are healthy financed, signaling financial stability.

Microsoft Corporation's debt has decreased relative to shareholder equity from 0.33 last year to 0.29 today, signaling strengthened financials

Microsoft Corporation has a net debt to EBITDA ratio of 0.25x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Microsoft Corporation earns at least as much interest as it pays. Interest obligations are fully covered.

Microsoft Corporation's profit margin has increased (11.51%) in the last year from 36.15% to 40.31%, signaling increasing performance

Microsoft Corporation's short-term assets of $207.71B exceed its short-term liabilities of $168.82B

Microsoft Corporation's return on assets of 17.64% is higher than the 5.00% threshold, indicating efficient asset utilization

Microsoft Corporation's return on equity of 33.22%, is higher than 15.00%, indicating good performance

Microsoft Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Microsoft Corporation had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Microsoft Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

Microsoft Corporation has a free cash flow yield of 1.91%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Microsoft Corporation's yearly earnings has increased 31.34% since last year from $101.83B to $133.75B, signaling increasing performance

Microsoft Corporation's yearly revenue has increased 17.79% since last year from $281.72B to $331.84B, signaling increasing performance

ROIC 20.56% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Microsoft Corporation's 3-year revenue CAGR of 16.12% is positive, indicating growing revenue over the past 3 years

Microsoft Corporation had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Microsoft Corporation had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Microsoft Corporation is overvalued relative to its fair value price of 157.56 based on Discounted Cash Flow model

Microsoft Corporation has an earnings yield of 3.56%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Microsoft Corporation is overvalued relative to its fair value price of 139.95 based on EBITDA multiple model

Microsoft Corporation has an EV/EBITDA ratio of 18.36x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Microsoft Corporation is overvalued relative to its fair value price of 399.55 based on Earnings Fair Value model

Microsoft Corporation has a PEG-ratio over 1 which is considered overvalued

Microsoft Corporation has a price-to-book ratio of 8.50x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Microsoft Corporation has a price-to-sales ratio of 11.33x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue