COVID-19 – we cannot ignore it IX – Microsoft (series completed)

Finally we added Microsoft to the graph, but…  it is a huge company – more like BP or Munich Re. This means all companies had to be presented together again. Of course this will make the small ones almost invisible, but then the previous 3D-graph showed those already, so it’s time for the big ones now – with Microsoft among them. I have to admit that it wasn’t easy to take all the necessary numbers from all documents, because Microsoft has a broken book-year. Not just broken, but actually shifting half a year and as a result e.g. 2020 is a combination of 2020 H1 and 2019 H2. To get the semi-annual numbers for the second half of the year we had to take Q1+Q2, but for the first half we had to take the annual values and subtract the Q1+Q2 values (being Q3 and Q4 in the normal calendar). I’m rather good at numbers, but time always confuses me. Yet I managed to get everything in the input-file.

Small step aside: for every blog-post I look for a nice picture, somehow related to the subject. The three sites I prefer are pixabay, pexels  and unsplash (thank you photographers!). Today I was looking for Microsoft and also related words like Laptop, Word, Excel, PowerPoint, Computer, Azure, Surface and Xbox. For some reason the photographers on these sites seem to think “Laptop” is a synonym for “Apple”. Then the other pictures were the most uninspiring ones I ever encountered. To be honest, even the pictures of Microsoft offices were quite boring. It seems like somehow Microsoft is an uninspiring company, but look at its Cash-flow! In the end I found a photo which was clearly related to Microsoft.

Photo by Carlos Gil on Unsplash

OK, back to Microsoft itself. What can be observed, looking at the new 3D-graph? Well, we know the green (or red) roof represents the Cash Flow from Operating Activities, but Microsoft is not like the others at all. Half the building being green can hardly be referred to as a “roof”. It’s unbelievable, especially when compared to BP with similar revenue (bit higher), equity (bit lower) and liabilities. Actually I thought I made a mistake, so I checked again and again.

Then I remembered that we looked at Microsoft before in the series “Data is the new oil”. Although there profit instead of cash-flow was shown, I still wondered why it the roof was quite normal there. Looking at the profit throughout the years it turns out 2018 (used in the previous graph) was a “bad year”, obviously because of some additional costs. With such a “bad year” still looking completely normal, one can imagine what the other years would be like. Indeed, what we are showing in this post starts in 2019 – being a “good year” again. No mistakes, just a matter of different periods!Microsoft finance in 3D

Double-clicking the screenshot will open the 3D-graph in your browser. Beware: the graph haw so many companies that zooming out is necessary to see the whole picture! Clicking the right mouse-button and moving the mouse up and down at the same time, will zoom the graph in and out. For manipulation of this 3D-graph: Clicking left while moving the mouse will tilt the graph in different directions. Double clicking in the graph translates it and readjusts the centre at the same time. Just try it – If you don’t know how to get the normal position back, refresh the page in your browser.

Although Corona and COVID-19 are mentioned several times, it’s not clear what the impact “has been for Microsoft in the first half of 2020. The declarations are rather vague, but then we have the highlights of the 2020 fiscal year (H2 2019 + H1 2020):

Highlights from fiscal year 2020 compared with fiscal year 2019 included:
  • Commercial cloud revenue increased 36% to $51.7 billion.
  • Office Commercial products and cloud services revenue increased 12%, driven by Office 365 Commercial growth of 24%.
  • Office Consumer products and cloud services revenue increased 11%, with continued growth in Office 365 Consumer subscribers to 42.7 million.
  • LinkedIn revenue increased 20%.
  • Dynamics products and cloud services revenue increased 14%, driven by Dynamics 365 growth of 42%.
  • Server products and cloud services revenue increased 27%, driven by Azure growth of 56%.
  • Enterprise Services revenue increased 5%.
  • Windows Commercial products and cloud services revenue increased 18%.
  • Windows original equipment manufacturer licensing (“Windows OEM”) revenue increased 9%.
  • Surface revenue increased 8%.
  • Xbox content and services revenue increased 11%.
  • Search advertising revenue, excluding traffic acquisition costs, was relatively unchanged.

Personally I think Microsoft profited from the pandemic, but that’s just my opinion. Just have a look at the green “roofs” for 2019 H1, H2 and 2020 H1…

Don’t forget to download your free copy of AnRep3D at our website. Short tutorials, explaining different parts of AnRep3D are available at our Youtube-channel. The white-paper and inspirational graphs can be downloaded at the homepage of our website:  https://anrep3d.com and follow @AnRep3D on Twitter, to be informed about new posts.

As this post completes the series about Corona, the next one will be completely different. It will take some time because of the Christmas holiday-period. Then I noticed that the number of visitors of the website – especially the number of downloads for the free software-package is dropping, although this blog is visited frequently. Please have a try and use the software yourself and let us know what you think! Commercial use is also OK, so don’t be afraid. Of course we are not responsible for the 3D-graphs  created by our software and their potential impact.

 

About AnRep3D

AnRep3D is the new company, founded after the handover of Scientassist (together with VRBI) to one of my sons. From now I will focus on three-dimensional graphs for the financial markets, showing the main figures from annual reports in comparison.
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