Microsoft is the fourth most valuable company in the world. The tech giant employs over 113,000 people and has a net revenue of $86 billion as of 2021. Microsoft’s success has been driven by their popular operating systems such as Windows and Office. The company also licenses its products to other companies like Apple and Sony.
The total reported income for Microsoft in 2016 was 111 Billion US dollars which translates into 86 Billion US dollars after tax deductions with an estimated market value at 363 Billion US dollars which ranks it third on Forbes’ list of America’s Richest Companies .
With a global workforce exceeding 113,000 employees, Microsoft is one of the worlds largest employers and partners with 130+ universities worldwide to provide software training programs . In 2014 they co-founded YouthSpark, a company initiative to create opportunities and promote inclusion for young people worldwide by partnering with non-profits such as Year Up .
In addition, Microsoft has been recognized in the past year for six awards from their “Innovative Schools” program which began in 2007. These awards include: Bonner Foundation Tech Impact Award , US State Department Award for Corporate Excellence , US Chamber of Commerce Foundation Partnership Award, SHAPE America STEM Leadership Institute Award, WISTA Gold World Medal and the GESS Educator Achievement Awards .
The World’s Fourth Most Valuable Company
Contents
1. Microsoft is the fourth most valuable company in the world
2. The tech giant employs over 113,000 people and has a net revenue of $86 billion as of 2021
3. Microsoft’s success has been driven by their popular operating systems such as Windows and Office
4. The company also licenses its products to other companies like Apple and Sony
5. Total reported income for Microsoft in 2016 was 111 Billion US dollars which translates into 86 Billion US dollars after tax deductions with an estimated market value at 363 Billion US dollars which ranks it third on Forbes’ list of America’s Richest Companies
6. With a global workforce exceeding 113,000 employees, Microsoft is one of the worlds largest employers and partners with 130+ universities worldwide to provide software training programs . In 2014 they co-founded YouthSpark, a company initiative to create opportunities and promote inclusion for young people worldwide by partnering with non-profits such as Year Up
7. Microsoft has been recognized in the past year for six awards from their “Innovative Schools” program which began in 2007. These awards include: Bonner Foundation Tech Impact Award, US State Department Award for Corporate Excellence, US Chamber of Commerce Foundation Partnership Award, SHAPE America STEM Leadership Institute Award, WISTA Gold World Medal and the GESS Educator Achievement Awards .
Microsoft Net Revenue
Microsoft Net Revenue refers to the company’s revenue minus their cost of goods sold and operating expenses. This is a measure of Microsoft’s profitability. Microsoft had a net revenue of $86 billion as of 2021, according to Statista.
Microsoft Revenue vs Costs
1. Microsoft Net Revenue = $86 billion
2. Cost of Goods Sold: $40 billion
3. Operating Expenses: $35 billion
4. Total: $111 billion
5. Profit Margin: 18%
6. Operating Margin: 15%
7. Microsoft Revenue vs Costs = Net Income of $28 billion
8. Total Assets – Total Liabilities = Market Value = $363 Billion
How Much Money Does Microsoft Company Make?
Microsoft has been able to maintain a net revenue of $86 billion in the past year. This is an increase of 4% from the previous year and they have been able to compensate for their cost of goods sold and operating expenses. Their profit margin is 18% which reflects that out of every dollar earned, they are able to keep 18 cents. Microsoft’s net income is 28 billion dollars which translates into 86 billion after taxes.
As of October 2017, Microsoft has reported total assets of $141.4 billion with total liabilities of $111.7 billion, giving the company a market value of $318 billion. By January 2018, this had increased to $353 billion.
As of January 2018, Microsoft had a net income of $32.7 billion and a revenue of $110.3 billion. This reflects a change of 2% from the previous quarter and a year-over-year growth rate of 35%. Of this revenue, 53% came from software sales while 23% came from their computing platform as a service. The remainder came from a mix of cloud services and Xbox related products and services.
Microsoft has an employee count of 119,000 which reflects a growth rate of 13% since last year. Their net income for the quarter was $7.4 billion with their total assets being valued at $133 billion compared to their total liabilities whose value was $104 billion.
Microsoft’s Market Value
As of December 2021, Microsoft became the third most valuable company in the world with a market value of $671 billion. The tech giant surpassed Facebook which had ranked number three just one month prior, but now has less than half the market value at 325 billion dollars.
Total Employees of Microsoft
Microsoft employees a workforce of over 113,000 people which reflects the size of the company.
What is Microsoft and what do they do?
Microsoft is an American multinational technology company headquartered in Redmond, Washington that develops, manufactures, licenses, and supports a wide range of products and services largely related to computing.
The company’s best known product line is the Windows operating system, which is used on the vast majority of personal computers. The company also produces software for video game systems and online platforms such as Xbox and Skype.
As of January 2018, Microsoft had a market capitalization of $753 billion making it the fourth most valuable company in the world. This has been driven by their strong performance with Windows, Surface and Azure products. These product lines account for over 40% of their total value as of January 2018.
Microsoft Revenue Trend
As can be seen from the chart above, which shows their revenue trend over the past 8 years, Microsoft’s net revenue has been increasing year-over-year. This is due to strong sales in Windows and gaming related products such as the Xbox Live service and Minecraft. As of January 2018, Microsoft has reported a revenue of $110.3 billion with an increased net income of 7.4 billion.
With over 30 years in the business, Microsoft is one of the largest companies in the world currently employing 113,000 people and generating over $86 billion annually in revenue.
Microsoft’s Future Plans
Since 2014, Microsoft has announced that they are planning to decrease their reliance on software by growing their cloud computing platform Azure. They are also looking to partner with other companies through the launch of their mixed-reality HoloLens headset and other augmented reality products.
These changes reflect Microsoft’s desire to keep up with other tech giants like Google and Amazon who have kept an edge over them through their cloud computing services.
This has been largely driven by the company’s CEO Satya Nadella who took over leadership in February 2014. Since then, he has implemented a number of measures to transform Microsoft into a “productivity and platform company for the mobile-first and cloud-first world.”
Compare Microsoft to other large tech companies like Apple, Google, or Facebook
Since 2014, Microsoft has announced that they are planning to decrease their reliance on software by growing their cloud computing platform Azure. They are also looking to partner with other companies through the launch of their mixed-reality HoloLens headset and other augmented reality products.
These changes reflect Microsoft’s desire to keep up with other tech giants like Google and Amazon who have kept an edge over them through their cloud computing services.
This has been largely driven by the company’s CEO Satya Nadella who took over leadership in February 2014. Since then, he has implemented a number of measures to transform Microsoft into a “productivity and platform company for the mobile-first and cloud-first world.”
As of December 2021, Microsoft became the third most valuable company in the world, following Apple and Amazon. Microsoft overtook Facebook after a particularly bad day for the social media giant where its share price fell by more than 20%. This has been mainly driven by their success with cloud computing services such as Azure and Dynamics 365.
What are some challenges faced by Microsoft today?
One of the main challenges faced by Microsoft today is that it has been losing its share of the personal computer market. Microsoft has been facing increased competition from Apple and Google in this regard.
With this, they have also had to fight against the popularity of mobile devices like smartphones and tablets and how these devices seem to be replacing laptops and desktop computers as a primary source of computing.
This has proved to be a challenge for Microsoft because not only are mobile devices taking away some revenue from their software licenses, but some companies like Apple and Google are also using them as an opportunity to make more money by selling their own software apps on these devices (such as iOS and Android).
As a result, the company has had to deal with this new reality and has responded by shifting the focus of its Windows operating system to cater for these devices.
Microsoft is also looking at opportunities beyond just software and is expanding into newer areas such as hardware through the launch of products like Surface Pro and HoloLens alongside their acquisition of LinkedIn.
What Makes Microsoft So Successful?
The Microsoft company is the fourth most valuable company in the world. It was founded by Bill Gates in 1975. The company employs over 113,000 people and has a net revenue of $86 billion as of 2015.
Microsoft’s success has been driven by their popular operating systems such as Windows and Office. The company also licenses its products to other companies like Apple and Sony.
How does Microsoft make money?
The company makes money by licensing their products and software to other companies. Microsoft also owns various entertainment brands such as Xbox which has generated $6.3 billion in revenue as of March 2016.