Microsoft Accounting Analysis Based on Profit Analysis and Market Value Prediction

Abstract

Microsoft is a world-renowned technology company with a range of business scopes including operating systems, productivity suites, cloud services, and search engines. Based on its position in the world, the analysis of Microsoft's financial situation has a certain guiding significance. First, it analyzes Microsoft's income statement from 2020 to the second quarter of 2023, using different growth assumptions, and calculates and compares Microsoft's Net income attributed to shareholders through two aspects: linear relationship, and index relationship. Then, using EXCEL and SPSS, an earnings forecast is given through the calculation and comparison of P/E ratios for different years. Finally, the article predicts Microsoft's market capitalization. Although Microsoft's market capitalization fell for a time in 2022, as of May 2023, Microsoft's market capitalization has recovered. The article believes that Microsoft's market value is still likely to continue to grow in the future. This is mainly because Microsoft has a wide range of layouts and applications in emerging technologies such as cloud computing and artificial intelligence, and is expected to continue to expand its business scope and improve market competitiveness in the future. With the development of emerging technologies such as cloud computing and artificial intelligence, the research results of this article can provide some development suggestions for emerging big data companies.