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Microsoft (MSFT) FY2020 results: revenue $143.0 billion, up 13.6% on the year

Microsoft Corp. (MSFT) reported revenue of $143.0 billion for fiscal 2020, the year ended 30 June 2020, up 13.6% on the year before. Net income was $44.3 billion, up 12.8%, and diluted earnings per share $5.76. The figures are the company's own, from the 10-K it filed with the SEC on 30 July 2020.

Revenue
$143.0 billion
+13.6% on the year
FY2013FY2020
Operating margin
37.0%
34.1% a year earlier
FY2013FY2020
Net income
$44.3 billion
+12.8% on the year
FY2013FY2020
Diluted EPS
$5.76
+13.8% on the year
FY2013FY2020

this yearthe year beforeHover a bar for its figure.

The year in brief

Income statement (profit and loss)

$ millionFY2020FY2019FY2018On the yearLast 8 years
Revenue143,015125,843110,360+13.6%
Cost of revenue46,07842,91038,353+7.4%
Gross profit96,93782,93372,007+16.9%
Gross margin67.8%65.9%65.2%
Research and development19,26916,87614,726+14.2%
Operating income52,95942,95935,058+23.3%
Operating margin37.0%34.1%31.8%
Interest expense2,5912,6862,733-3.5%
Pre-tax income53,03643,68836,474+21.4%
Income tax8,7554,44819,903+96.8%
Effective tax rate16.5%10.2%54.6%
Net income44,28139,24016,571+12.8%
Net margin31.0%31.2%15.0%
Diluted EPS$5.76$5.06$2.13+13.8%
$ 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

$ millionFY2020FY2019FY2018On the yearLast 8 years
Operating cash flow60,67552,18543,884+16.3%
Capital expenditure15,44113,92511,632+10.9%
Free cash flow45,23438,26032,252+18.2%
Free cash flow margin31.6%30.4%29.2%
Cash from investing-12,223-15,773-6,061
Cash from financing-46,031-36,887-33,590
Depreciation and amortisation12,30011,6009,900+6.0%
Share-based compensation5,2894,6523,940+13.7%
Buybacks22,96819,54310,721+17.5%
Dividends paid15,13713,81112,699+9.6%
Dividend per share$2.04$1.84$1.68+10.9%
Diluted shares, weighted7,683m7,753m7,794m-0.9%
Shares outstanding at period end7,571m7,643m7,677m-0.9%

Balance sheet

$ millionFY2020FY2019FY2018On the yearLast 8 years
Shareholders' equity118,304102,33082,718+15.6%
Short-term borrowingsn/an/a0.0
Debt63,32772,20076,200-12.3%
Operating lease liabilities7,6716,1885,568+24.0%
Other liabilities112,009105,83894,362+5.8%
Total liabilities and equity301,311286,556258,848+5.1%
Fixed assets44,15136,47729,460+21.0%
Goodwill43,35142,02635,683+3.2%
Intangible assets7,0387,7508,053-9.2%
Investments125,916125,112123,684+0.6%
Cash and equivalents13,57611,35611,946+19.5%
Receivables32,01129,52426,481+8.4%
Inventory1,8952,0632,662-8.1%
Other assets33,37332,24820,879+3.5%
Total assets301,311286,556258,848+5.1%

10-K for the year ended 30 June 2020, filed 30 July 2020: the filing.