This report provides a summary of key financial metrics and growth estimates for Microsoft Corporation (MSFT) over the period from 2013 to 2023. The analysis covers Earnings per Share (EPS), Net Profits, Revenue, Shareholders’ Equity, and Long-Term Debt. Additionally, projections are provided for future EPS and stock price growth over the next 10 years.
1. Earnings per Share (EPS):
- Initial EPS (2013): $2.63
- Current EPS (2023): $11.80
- Annual EPS Growth Rate (CAGR): 16.20%
- Projected EPS in 10 Years: $52.94
- Estimated Stock Price in 10 Years: $794.14
- Annual Stock Price Growth Rate (CAGR): 6.65%
2. Net Profits:
- Initial Net Profits (2013): $21 billion
- Current Net Profits (2023): $88 billion
- Annual Net Profits Growth Rate (CAGR): 15.41%
3. Revenue:
- Initial Revenue (2013): $77 billion
- Current Revenue (2023): $245 billion
- Annual Revenue Growth Rate (CAGR): 12.27%
4. Shareholders’ Equity:
- Initial Equity (2013): $78 billion
- Current Equity (2023): $268 billion
- Annual Equity Growth Rate (CAGR): 13.14%
5. Long-Term Debt:
- Initial Long-Term Debt (2013): $15 billion
- Current Long-Term Debt (2023): $97 billion
- Annual Long-Term Debt Growth Rate (CAGR): 20.52%
- Years to Pay Off Long-Term Debt Using Net Profit: 1.10 years
Key Insights:
- EPS Growth: Microsoft has demonstrated strong EPS growth, increasing by 16.20% annually, indicating consistent profitability improvements.
- Stock Price Growth: The stock price is projected to grow at a 6.65% CAGR, reaching an estimated value of $794.14 in 10 years.
- Net Profit Expansion: Net profits have increased significantly, with a 15.41% CAGR, reflecting Microsoft’s sustained growth in technology and cloud services.
- Revenue Growth: Revenue has grown at a healthy rate of 12.27% CAGR, showcasing Microsoft’s successful expansion across various business segments.
- Equity Strength: Shareholders’ equity has more than tripled over 10 years, growing by 13.14% CAGR, providing a solid capital base.
- Debt Increase: Long-term debt has grown at a high rate of 20.52%, but Microsoft’s ability to pay off its debt in just over a year using net profits demonstrates strong financial management.