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They made $16.7 billion in their last fiscal year, and 2015 and 2016 represented their lowest profits over the past 10 years.
by jlmorton 10y ago
They made $16.7 billion in their last fiscal year, and 2015 and 2016 represented their lowest profits over the past 10 years.
- oblio 10y agoLow profits tend to happen in the first years of a transition to subscription. See Adobe for another example.
- adventured 10y agoYou're using a non-recurring charge to try to make a wider point. 2015 had a $10 billion non-recurring, non-cash charge. Without that, your entire premise collapses. The easiest way to poke a giant hole in what you're proposing, is to look at cash production from operations, which is the ultimate gauge of profitability. Their cash production the last two years is not the lowest over the past 10 years. Net operating cash flow for 2016: $33 billion. Higher than 2015, 2014, 2013, 2012.
- jlmorton 10y agoTrue. There are also much larger capital expenditures, and dividend payments. I think Microsoft is doing tremendously well under Satya Nadella. I was making no other point except that the parent poster's comment about income were incorrect.