When is a 34.34% net profit margin not enough?
When you are Microsoft, that is when!
Yesterday, Microsoft released its latest quarterly earnings report, and, lo and behold, haters went to work with their flensing knives!
Am I making too much of it?
Let us go to the numbers:
Company, Gross, Net, Ratio
Google, $3.66 billion, $1.0 billion, 27.32%
Apple, $5.92 billion, $770 million, 14.63%
Microsoft, $14.40 billion, $4.93 billion, 34.24%
According to reports, Microsoft added deferred revenues of $1.67 billion, which added income of $1.14 billion to the numbers.
Even if we take Microsoft‘s deferred revenues out of the equation, the result is:
Company, Gross, Net, Ratio
Microsoft, $14.40 billion, $4.93 billion, 34.24%
Microsoft (w/o def revenue), $12.79 billion, $3.79 billion, 29.63%
Looking at that ‘peer’ group, correct me if I am wrong, but doesn’t Microsoft’s numbers still trump all of those chums?
Without deferred revenues, Microsoft, a $55 billion dollar company, is still reporting an whopping income ratio of 29.63%.
Yet these Wall Street types cannot see the beauty of such a balance sheet, yet they glorify every schnorrer that comes their way seeking VC funds.
Microsoft might just want to start taking on debt in order for the financial markets to recognize them.
In my blog post here, I scolded the executives at Microsoft for rejoicing based on such woeful numbers!
