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Microsoft reports $22.6B in Q4 revenue

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Re: Microsoft reports $22.6B in Q4 revenue

#51

Post by Dwolb »

samfisher83 wrote: post #38
Dwolb wrote: post #29

Earlier quoted context omitted.

I had a financial accounting professor who would recount the quote, "Profit is an opinion, but cash is a reality." The 10k's we would go over took a lot of analysis to understand financially and operationally if the company is in good shape based on the stated numbers.

Definitely not true. You can manipulate cash flow. For example you can give your customer a sweet heart deal where you give your customer a massive discounts on future orders for upfront payment you get a lot of cash the current q, but you are hurting yourself in future q. You can also increase you ap and make cash flow better.you can also pay employees with stock and increase cash flow, but decrease share holder val…

Sure that's the cash flow statement. When looking at free cash flows one would take into account changes in net working capital and adjust accordingly.

Re: Microsoft reports $22.6B in Q4 revenue

#52

Post by droshelovich »

xyzzy4 wrote: post #40
droshelovich wrote: post #22

Earlier quoted context omitted.

In this case, "Non-GAAP" means an earnings/revenue figure that the company produced itself. Companies usually claim this reflects economic reality but keep in mind they are free to cook up whatever numbers they want. GAAP would mean figures that adhere to general accounting rules, which independent auditors help confirm. Generally, "Non-GAAP" can mean either IFRS or Cash Basis Accounting Basically: GAAP - Generally A…

Non-GAAP lets executives create nicer Power Point presentations.

Bullseye.

Re: Microsoft reports $22.6B in Q4 revenue

#54

Post by lloyd-christmas »

julsimon wrote: post #6

Not according to GAAP rules... http://www.zerohedge.com/news/2016-07-19/microsoft-misses-ga...

> Not according to GAAP rules...

Not "rules" but "guidelines". Or quite literally, "principles".

"... stock soars"

The thing is that GAAP vs Non-GAAP is pretty irrelevant unless they regularly change how they do it. If a company reports non-GAAP earnings every quarter with the same methodology, it's effectively the same as reporting GAAP. People on wall street aren't dumb. There is a reason the reaction was positive.

Food for thought, here are GAAP vs non-GAAP reportings for the S&P 500 companies: http://www.auditanalytics.com/blog/wp-content/uploads/2015/1...

For the non-finance people, this is like using snake case in a camel case language or vice versa. Sure, it's an annoyance the first time you look at the project. As long as it's consistent between files, it's not really worth withdrawing from your "things I can bitch about at the dinner table" account.

Re: Microsoft reports $22.6B in Q4 revenue

#55

Post by corprew »

chenster wrote: post #42
allengeorge wrote: post #35

Earlier quoted context omitted.

Really? "Street" is a pretty common term for Wall Street (aka. the consensus opinion of analysts) I've definitely seen it for years.

I hate English.

other languages also use things metonymously, so maybe hating human cognition is a safer bet.

Re: Microsoft reports $22.6B in Q4 revenue

#57

Post by lanevorockz »

lloyd-christmas wrote: post #54
julsimon wrote: post #6

Not according to GAAP rules... http://www.zerohedge.com/news/2016-07-19/microsoft-misses-ga...

> Not according to GAAP rules... Not "rules" but "guidelines". Or quite literally, "principles". "... stock soars" The thing is that GAAP vs Non-GAAP is pretty irrelevant unless they regularly change how they do it. If a company reports non-GAAP earnings every quarter with the same methodology, it's effectively the same as reporting GAAP. People on wall street aren't dumb. There is a reason the reaction was positive.…

This belief that Wall Street is always correct is exactly what caused the previous economic crash. Speculators don't care about a correct investment decision is about riding the trends. If people are buying, it doesn't matter if you don't agree .. you have to buy as well it works as a hedge.

btw, don't say " for the non-finance people " -> it's very arrogant and bankers are already hated as it is.

Re: Microsoft reports $22.6B in Q4 revenue

#58

Post by cmdrfred »

sharemywin wrote: post #56
cmdrfred wrote: post #53

I'm sure the horseshoe manufacturing firms beat out Henry Ford for a while.

Google '98 0 Microsoft 98' 14B Google '15 74B Microsoft '15 93B I'd invest in a horseshoe manufacture that grows revenue 4.6B a year for the last 17 years.

Microsoft's pricing model is off the rails. Ever look into Windows Server? Then the required CALS? It often costs twice the price of the hardware. Businesses will be moving to Linux/Cloud Apps like Google Docs over Office/Windows fast. There is little reason to stick with the MS ecosystem anymore.

Re: Microsoft reports $22.6B in Q4 revenue

#59

Post by nl »

bearbin wrote: post #2

The headline is very confusing - "Microsoft beats Wall Street predictions with $22.6B revenue" would be a better choice.

*beat the Street" is a very common term. Google N-Grams has it being roughly 1/10th as popular as the term "silicon valley" or "wall street"[1]. That's a pretty significant amount of usage.

[1] https://books.google.com/ngrams/graph?content=beat+the+Stree...

Re: Microsoft reports $22.6B in Q4 revenue

#60

Post by forgotAgain »

heyrhett wrote: post #14

"The increase in Microsoft's annual revenue since Google was founded is still greater than Google's total annual revenue." https://twitter.com/patrickc/status/526406718440218624

That statement was made about 18 months ago. It is no longer true. Microsoft's revenue in FY 1998 was $14.48 billion as per https://news.microsoft.com/1998/07/16/microsoft-posts-record... .

Last 12 months rev for G and M are $75 and $85.3 billion per Google finance.

edit: M's revenue had actually decreased $8 billion over the prior 12 months.

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