### Some analysis of Microsoft Corp (MSFT)

Posted:

**June 16th, 2019, 8:14 am**Hi folks,

After doing loads of nattering about software firms and getting my arm wristed over my reservations with direct US-stocks investing, I decided to spend some time looking the accounts of software giant Microsoft.

I got several different points and posts to make but firstly I'll present some fundamental analysis that I did for the years reported 2014-2018 and a forecast I've prepared for 2019.

The reported years can be found here MSFT annual reports but since they are about 3/4 of the way into their next report period and given that Msft seem to undergoing a time of growth/transformation I decided to peruse recent FORM-Q filings. The form-q stuff was pretty good, the balance sheet/equity stuff is obviously almost spot on, and the P&L and CF statements have the first three quarters, and by researching+testing simple multiplication by x 1.333 on earlier years, it seemed a pretty reasonable idea to just apply this multiplication the results from Jun 2018 to Mar 2019 to generate suitable forecasts for 2019.

Notes: The ROIC figure is a lot bigger than ROCE since in my formula for ROIC cash and marketable investments are added back to the denominator. Just different ways of expressing similar things. Google for other definitions if you like. (For a similar reason CROCI using Phil Oakley's is smaller since it uses average CE whereas mine uses YTD IC).

For my dividend information I used this:

https://www.streetinsider.com/dividend_ ... php?q=msft

MSFT very nicely present us with a historic SP lookup:

https://www.microsoft.com/en-us/Investo ... ookup.aspx

Matt

After doing loads of nattering about software firms and getting my arm wristed over my reservations with direct US-stocks investing, I decided to spend some time looking the accounts of software giant Microsoft.

I got several different points and posts to make but firstly I'll present some fundamental analysis that I did for the years reported 2014-2018 and a forecast I've prepared for 2019.

The reported years can be found here MSFT annual reports but since they are about 3/4 of the way into their next report period and given that Msft seem to undergoing a time of growth/transformation I decided to peruse recent FORM-Q filings. The form-q stuff was pretty good, the balance sheet/equity stuff is obviously almost spot on, and the P&L and CF statements have the first three quarters, and by researching+testing simple multiplication by x 1.333 on earlier years, it seemed a pretty reasonable idea to just apply this multiplication the results from Jun 2018 to Mar 2019 to generate suitable forecasts for 2019.

Notes: The ROIC figure is a lot bigger than ROCE since in my formula for ROIC cash and marketable investments are added back to the denominator. Just different ways of expressing similar things. Google for other definitions if you like. (For a similar reason CROCI using Phil Oakley's is smaller since it uses average CE whereas mine uses YTD IC).

For my dividend information I used this:

https://www.streetinsider.com/dividend_ ... php?q=msft

MSFT very nicely present us with a historic SP lookup:

https://www.microsoft.com/en-us/Investo ... ookup.aspx

Matt