MSFTMicrosoft Corporation

$524.72+3.2% 1Y

RyuScore

Seven criteria, each scored 0 to 100 on a published scale, weighted into one number.

RyuScore 75 out of 100, Strong
Today's price. Only valuation depends on it.

Strong. Microsoft Corporation scores higher than 87% of the 2,231 companies Ryufin scores.

Carried by return on capital and return on new capital, with nothing holding it far back.

Technology median 46 · all companies 55

How the score has moved

At each fiscal year end, from the reports and price of the time
76
80
77
75
75
81
75
202120222023202420252026today

The biggest move was up 6 points from 2025 to 2026, mostly valuation.

Valuation

26% of the score

50median 53

Microsoft Corporation is valued at 24.9x its operating profit, including debt: a rich multiple.

60x
50x
35x
25x
18x
12x
8x
24.9x
Full points at 8x or less, none from 60xfull points

Return on capital

18% of the score

100median 24

Over 7 years the business earned 36% a year after tax on the capital it uses.

2%
8%
15%
25%
36%
None at 2% or less, full points from 25%full points
Return on capital by year
7 years agolatest 28%

Return on new capital

16% of the score

92median 33

For every dollar of operating profit earned over 6 years, yearly profit grew by 11 cents. New capital earned 16%, and 66% of profit went back into the business.

-5%
12%
11%
None at minus 5 cents, full points from 12 centsfull points

Capital allocation

14% of the score

66median 63

How management spends the money: shares bought back or issued, and whether assets grow faster than the business they serve.

Share countDown 0.4% a year over 5 years: buybacks
68
5%
-3%
-0.4%
0 pointsfull points
Assets against salesAssets grew 18% a year, sales 15%
62
12%
-2%
3.3%
0 pointsfull points

Cycle position

12% of the score

57median 63

Today's operating margin of 47% is 1.10x its normal 43%: above its usual level. Normal is half the 10 year median, half the last four years, so a margin that has held is not taken for a peak.

2x
1.5x
1x
0.7x
1.1x
A trough earns points, a peak costs themfull points
Operating margin by year, against its normal level
10 years agonow 47%

Balance sheet

8% of the score

100median 50

What the debt weighs against the profit that has to carry it.

Net debt to EBITDAMore cash than debt
100
Interest coverOperating profit covers interest 51x
100
1.5x
12x
50.9x
0 pointsfull points

Earnings quality

6% of the score

92median 90

Whether the reported profit arrives as cash, and whether the accounts show the usual signs of stretching.

Cash against profitOperating cash flow was 1.35x profit over 3 years
100
0.7x
1x
1.3x
1.4x
0 pointsfull points
AccrualsCash ran ahead of profit by 7.1% of assets
96
8%
0%
-8%
-7.1%
0 pointsfull points
Beneish M-score-2.64
82
-1.50
-1.78
-2.22
-3.00
-2.64
0 pointsfull points

How the RyuScore works

Each criterion earns 0 to 100 points on the scale drawn under it, and the RyuScore is their average weighted 26, 18, 16, 14, 12, 8 and 6. Scales bend in the company's favour between their ends, so an ordinary figure is never already near zero. Where a criterion cannot be measured from the filings it is taken out and the remaining weights scale up; a company needs 60% of the weight covered, and always a price, to get a score.

Built from the company's annual and quarterly filings with the SEC and today's share price. Banks, insurers and property trusts are not scored: their debt is their raw material, so these yardsticks mean something else there. Figures as of 2026-06-30, latest annual report FY2026.