Aureus
AExcellent

Microsoft Corporation(MSFT)

A

Financial data as of Jun 30, 2025Stable · Technology

FCF Margin25.4%Free Cash Flow / Revenue
Cash Conversion133.7%Operating CF / Net Income
Free Cash Flow$71.6B
Revenue$281.7B
Net Cash-$30.3BNet debt position
Debt / FCF0.8xManageable debt load
Current Ratio1.35Adequate short-term liquidity
YoY FCF Growth-9.3%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (25.4%, 0.8x)
→
+1Very low debt-to-FCF ratio (0.8x)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (25.4%)
  • Excellent cash conversion (134%)
  • Very low debt relative to cash flow (0.8x)

Concerns

  • Net debt position ($30.3B) — 0.8x FCF, manageable

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin25.4%
Net Margin36.1%
Operating CF Margin48.3%
CapEx Ratio22.9%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$30.3BNet debt position
Debt / FCF0.8xManageable debt load
Current Ratio1.35Adequate liquidity
Debt / Equity0.18Low leverage

Quarterly FCF Trend

-9.3% YoYStable (-9.3%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameMicrosoft Corporation
SectorTechnology
Free Cash Flow$71.6B
Revenue$281.7B
Net Income$101.8B
Operating Cash Flow$136.2B
Capital Expenditure$64.6B
FCF Margin25.4%
Cash Conversion Rate133.7%
Net Margin36.1%
Total Debt$60.6B
Total Cash$30.2B
Net Cash-$30.3B
Current Ratio1.35
Debt / Equity0.18
Debt / FCF0.8x
YoY FCF Growth-9.3%
Positive Quarters5 of 5
Trend DirectionStable
Report DateJun 30, 2025
GradeA
Data SourceYahoo Finance

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