Microsoft Corp (MSFT) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Technology / Software · as of Sep 10, 2026
Microsoft Corp (MSFT)
A forensic read on Microsoft Corp built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
15.3
Distress distance
Clean
Earnings quality
2
Forensic signals
27.4
P / E (ttm)
30.2%
ROE
$3.7T
Market cap
0.79%
Dividend yield
17.8%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Microsoft Corp earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 15.3, placing it in the Safe zone. 2 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+25.8%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +25.8% relative to their own average in FY2026 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by PP&E up +53% against revenue +18% and inventory up +49% against +21% in cost of sales. This is the third straight fiscal year of building accruals — a multi-year streak is a materially stronger tell than a single year's move. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 12% of net operating assets, against an accruals ratio of 25.8%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
-0.1%/yr
FY2023–FY2026
Share count.Diluted share count changed 0% over the last 3 years to FY2026 (-0.1%/yr). Roughly flat — buybacks ($22.3B) are about offsetting stock comp ($12.4B), not shrinking the count. Per-share value isn't being meaningfully helped or hurt by the count.
Key fundamentals
Net Margin40.3%
Debt / Equity0.09x
Free Cash Flow$66.99B
Latest Revenue$331.84B
Return on Equity30.2%
Revenue CAGR (3yr)+16.1%
Revenue Growth YoY+17.8%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Microsoft Corp's actual 10-K/10-Q/8-K filings?