In 1990, Microsoft was a “safe” company. Today it is very risky:
From 1985 to 1990, its revenues had increased by 851%. However, since 2013 they have only increased by 43%.
In 1990, its debts were 17% of its revenues, but today debts are 49% greater than revenues.
In 1990, its Price to Sales ratio was 5.84, which was already very high. Microsoft’s current Price to Sales ratio, however, is a more excessive 6.68.
Date | Revenues | Liabilities | Market Cap | Dividends (TTM) | Net Income | Interest Expense (TTM) | Shares Outstanding | PE Ratio |
12/31/1990 | $1,478 | $248 | $8,623 | $0 | $356 | $0 | 8,250.1 | 24.2 |
12/31/1995 | $7,419 | $2,801 | $50,938 | $0 | $1,838 | $0 | 9,504.1 | 27.7 |
12/31/2000 | $23,776 | $11,269 | $231,290 | $0 | $9,624 | $0 | 10,642.0 | 24.0 |
12/31/2005 | $41,359 | $23,049 | $278,358 | $3,447 | $13,057 | $0 | 10,384.0 | 21.3 |
12/31/2010 | $66,690 | $43,825 | $234,528 | $4,750 | $20,568 | $177 | 8,403.0 | 11.4 |
12/31/2015 | $88,084 | $103,318 | $439,679 | $10,371 | $11,710 | $1,016 | 7.925.0 | 37.5 |
12/21/2018 | $114,906 | $171,652 | $768,082 | $12,916 | $18,819 | $2,735 | 7,676.2 | 40.8 |
Date | Debt to Revenue | Price to Sales | Interest Exp. as % of Net Income | Interest Exp. as % of Revenue | Dividends as % of Net Income | Dividends as % of Revenue | Dividends + Interest Exp. as % of Net Income | Dividends + Interest Exp. as % of Revenue | Net Income as % of Revenue |
12/31/1990 | 16.7% | 5.84 | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 24.1% |
12/31/1995 | 37.8% | 6.87 | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 24.8% |
12/31/2000 | 47.4% | 9.73 | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 40.5% |
12/31/2005 | 55.7% | 6.73 | 0.0% | 0.0% | 26.4% | 8.3% | 26.4% | 8.3% | 31.6% |
12/31/2010 | 65.7% | 3.52 | 0.9% | 0.3% | 23.1% | 7.1% | 24.0% | 7.4% | 30.8% |
12/31/2015 | 117.3% | 4.99 | 8.7% | 1.2% | 88.6% | 11.8% | 97.2% | 12.9% | 13.3% |
12/21/2018 | 149.4% | 6.68 | 14.5% | 2.4% | 68.6% | 11.2% | 83.2% | 13.6% | 16.4% |
Date | 5Y Revenue Growth |
5Y Liabilities Growth |
3Y Increase in Liabs as % of Dividends Paid | 3Y Increase in Liabs as % of Divs + Buybacks |
12/31/1990 | 850.9% | |||
12/31/1995 | 402.1% | 1,031.7% | ||
12/31/2000 | 220.5% | 302.3% | ||
12/31/2005 | 74.0% | 104.5% | 0.16 | 0.11 |
12/31/2010 | 61.2% | 90.1% | 0.80 | 0.24 |
12/31/2015 | 32.1% | 135.8% | 1.69 | 0.81 |
12/21/2018 | 43.0% | 182.8% | 2.10 | 1.07 |