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Microsoft (Microsoft) FCF Yield % : 2.34 (As of Apr. 27, 2024)


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What is Microsoft FCF Yield %?

FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.

As of today, Microsoft's Trailing 12-Month Free Cash Flow is $70,576 Mil, and Market Cap is $3,019,894 Mil. Therefore, Microsoft's FCF Yield % for today is 2.34%.

The historical rank and industry rank for Microsoft's FCF Yield % or its related term are showing as below:

MSFT' s FCF Yield % Range Over the Past 10 Years
Min: 2.11   Med: 3.84   Max: 9.99
Current: 2.34


During the past 13 years, the highest FCF Yield % of Microsoft was 9.99%. The lowest was 2.11%. And the median was 3.84%.

MSFT's FCF Yield % is ranked better than
62.71% of 2832 companies
in the Software industry
Industry Median: 0.35 vs MSFT: 2.34

Microsoft's FCF Margin % for the quarter that ended in Mar. 2024 was 33.89%.


Microsoft FCF Yield % Historical Data

The historical data trend for Microsoft's FCF Yield % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Microsoft FCF Yield % Chart

Microsoft Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
FCF Yield %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.74 2.94 2.76 3.40 2.35

Microsoft Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
FCF Yield % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.33 3.13 3.52 1.31 2.68

Competitive Comparison of Microsoft's FCF Yield %

For the Software - Infrastructure subindustry, Microsoft's FCF Yield %, along with its competitors' market caps and FCF Yield % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Microsoft's FCF Yield % Distribution in the Software Industry

For the Software industry and Technology sector, Microsoft's FCF Yield % distribution charts can be found below:

* The bar in red indicates where Microsoft's FCF Yield % falls into.



Microsoft FCF Yield % Calculation

FCF Yield % is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.

Microsoft's FCF Yield % for the fiscal year that ended in Jun. 2023 is calculated as

FCF Yield %=Free Cash Flow / Market Cap
=59475 / 2530893.28
=2.35%

Microsoft's annualized FCF Yield % for the quarter that ended in Mar. 2024 is calculated as

FCF Yield %=Free Cash Flow * Annualized Factor / Market Cap
=20965 * 4 / 3126921.4632
=2.68%

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Microsoft FCF Yield % Explanation

Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.


Microsoft FCF Yield % Related Terms

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Microsoft (Microsoft) Business Description

Address
One Microsoft Way, Redmond, WA, USA, 98052-6399
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
Executives
Kathleen T Hogan officer: EVP, Human Resources C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Judson Althoff officer: EVP, Chief Commercial Officer MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052
Satya Nadella director, officer: Chief Executive Officer C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Bradford L Smith officer: Executive Vice President MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Teri List director 2200 PENNSYLVANIA AVENUE, SUITE 800W, WASHINGTON DC 20037
Christopher C Capossela officer: EVP, Chief Marketing Officer C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Amy Hood officer: Chief Financial Officer C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Emma N Walmsley director C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Carlos A Rodriguez director 10200 SUNSET DRIVE, MIAMI FL 33173
Christopher David Young officer: EVP, Business Development C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
John W Stanton director 3650 131ST AVE SE #400, WESTERN WIRELESS CORP, BELLEVUE WA 98006
Charles W Scharf director C/O VISA INC., 900 METRO CENTER BLVD., FOSTER CITY CA 94404
Hugh F Johnston director PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Reid Hoffman director C/O LINKEDIN CORPORATION, 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043
Sandra E Peterson director 100 PARSONS POND DRIVE, FRANKLIN LAKES NJ 07417