PUBLIC EXAMPLE · NO ACCOUNT
Microsoft.
More cash. More investment.
Historical case · fiscal years ended June 30, 2024 and 2025. Not a current company assessment.
01 / What changed
| Measure | 2024 | 2025 | Δ |
|---|---|---|---|
| Operating cash flow | 118,548 | 136,162 | 14.9% |
| Cash investment in property and equipment | 44,477 | 64,551 | 45.1% |
| Arithmetic difference | 74,071 | 71,611 | -3.3% |
Operating cash grew, but investment grew faster. Their difference fell. That alone does not establish deterioration or mispricing.
Verify the source and calculation
2025: 136.162 − 64.551 = 71.611. 2024: 118.548 − 44.477 = 74.071.
Locator: Cash Flows Statements. Figures reviewed September 13, 2026.
Microsoft · Annual Report 202502 / What would change the thesis
Question: how much investment maintains the existing business, and how much builds future capacity?
Favourable hypothesis: investment produces durable cash generation. Counterargument: recurring reinvestment absorbs the gains. Compare future cash generation, investment and lease commitments.
The difference above is not normalized owner earnings or unlevered free cash flow. Maintenance, growth and lease obligations are not reconciled here. No target price is published.
03 / Why position size matters
Independent arithmetic illustration. These inputs are hypothetical, not forecasts or your holdings.
Only this position changes; all other positions and cash stay constant. No leverage, fees or trading.
Now investigate your own company.
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