Best Investment choices: Microsoft

In this blog, I am going to show the second choice regarding stocks that people can Invest in especially with the unknown sentiments of the market. This choice is based solely on financial analysis of company financial statements and based on how much Return on Invested capital and free cash flow can be generated.

Microsoft is one of the most powerful companies that generate higher ROIC and Free Cash flow as shown in the below graphs:

As you can See in the above graph Microsoft from 2018 until 2021 doubled its ROIC from 16% until it made it 38%, which is one of the highest ROIC that company can make.

Also, Microsft generated high Free cash flow which was a result of its High ROIC as shown below:

Since Microsoft was able to double its ROIC, From 2018 until 2021, that lead to double its Free cash flow from 35.7 Billion in 2018 until it become 83.5 Billion in 2021 which help Microsoft Acquire Activision Blizzard in cash last year.

These two measurements make Microsoft one of the high candidates that people can invest in its stock, especially with the uncertainty that covers the stock market these days and no one can be sure where is the market heading next.

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