Earnings and Losses

Microsoft: Financial Gauge Analysis for the September 2010 Quarter

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In Brief...

Microsoft (MSFT) earned $0.62 per diluted share on a GAAP basis in the September-ending first quarter of fiscal 2011, up 56 percent from $0.40 in the same three months of last year.. This post reports on the metrics for Microsoft and the associated financial gauge scores. With Office 2010 and other products, Microsoft is taking initial steps towards cloud computing to counter competitive threats from Google and others.. Additional background information about Microsoft and the business environment in which it is currently operating can be found in the look-ahead. In summary, Microsoft's latest quarterly results produced the following changes to the gauge scores: Most notably, Microsoft has $44.2 billion in cash and short-term investments, far more than its total debt of $10.7 billion. The debt helps Microsoft manage its liquidity across various currencies, and it is a source of funds for dividends and share repurchases.. Microsoft is one of the now-rare U.S. firms with a AAA bond rating.. (Fiscal 2009 was the first year in which Microsoft's Revenue was less than the year before. Cost-cutting that began nearly two years ago has had a positive effect on the Microsoft's bottom line.. The ROIC and FCF percentages have soared to figures eye-opening even by Microsoft's standards..

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