Microsoft (MSFT) FY2014 results: revenue $86.8 billion, up 11.5% on the year
Microsoft Corp. (MSFT) reported revenue of $86.8 billion for fiscal 2014, the year ended 30 June 2014, up 11.5% on the year before. Net income was $22.1 billion, up 1.0%, and diluted earnings per share $2.63. The figures are the company's own, from the 10-K it filed with the SEC on 31 July 2014.
Revenue
$86.8 billion
+11.5% on the year
FY2008FY2014
Operating margin
32.0%
34.4% a year earlier
FY2008FY2014
Net income
$22.1 billion
+1.0% on the year
FY2008FY2014
Diluted EPS
$2.63
+1.9% on the year
FY2008FY2014
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2014
FY2013
FY2012
On the year
Last 8 years
Revenue
86,833
77,849
73,723
+11.5%
Cost of revenue
27,078
20,385
17,530
+32.8%
Gross profit
59,755
57,464
56,193
+4.0%
Gross margin
68.8%
73.8%
76.2%
Research and development
11,381
10,411
9,811
+9.3%
Operating income
27,759
26,764
21,763
+3.7%
Operating margin
32.0%
34.4%
29.5%
Interest expense
597
429
380
+39.2%
Pre-tax income
27,820
27,052
22,267
+2.8%
Income tax
5,746
5,189
5,289
+10.7%
Effective tax rate
20.7%
19.2%
23.8%
Net income
22,074
21,863
16,978
+1.0%
Net margin
25.4%
28.1%
23.0%
Diluted EPS
$2.63
$2.58
$2.00
+1.9%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2014
FY2013
FY2012
On the year
Last 8 years
Operating cash flow
32,502
28,833
31,626
+12.7%
Capital expenditure
5,485
4,257
2,305
+28.8%
Free cash flow
27,017
24,576
29,321
+9.9%
Free cash flow margin
31.1%
31.6%
39.8%
Cash from investing
n/a
-23,811
-24,786
Cash from financing
n/a
-8,148
-9,408
Depreciation and amortisation
4,245
3,339
2,758
+27.1%
Share-based compensation
2,446
2,406
2,244
+1.7%
Buybacks
7,316
5,360
5,029
+36.5%
Dividends paid
8,879
7,455
6,385
+19.1%
Dividend per share
$1.12
$0.92
$0.80
+21.7%
Diluted shares, weighted
8,399m
8,470m
8,506m
-0.8%
Shares outstanding at period end
8,239m
8,328m
8,381m
-1.1%
Balance sheet
$ million
FY2014
FY2013
FY2012
On the year
Last 8 years
Shareholders' equity
89,784
78,944
66,363
+13.7%
Short-term borrowings
n/a
0.0
n/a
Debt
22,600
15,600
11,900
+44.9%
Other liabilities
60,000
47,887
43,008
+25.3%
Total liabilities and equity
172,384
142,431
121,271
+21.0%
Fixed assets
13,011
9,991
8,269
+30.2%
Goodwill
20,127
14,655
13,452
+37.3%
Intangible assets
6,981
3,083
3,170
+126.4%
Investments
91,637
84,062
65,878
+9.0%
Cash and equivalents
8,669
3,804
6,938
+127.9%
Receivables
19,544
17,486
15,780
+11.8%
Inventory
2,660
1,938
1,137
+37.3%
Other assets
9,755
7,412
6,647
+31.6%
Total assets
172,384
142,431
121,271
+21.0%
10-K for the year ended 30 June 2014, filed 31 July 2014: the filing.