Microsoft Corporation (MSFT)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 245,122,000 | 211,915,000 | 198,270,000 | 168,088,000 | 143,015,000 |
| Property, plant and equipment | US$ in thousands | — | 109,987,000 | 87,546,000 | 70,803,000 | 44,151,000 |
| Fixed asset turnover | — | 1.93 | 2.26 | 2.37 | 3.24 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $245,122,000K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Microsoft Corporation's fixed asset turnover has shown a declining trend over the past few years. In June 2020, the ratio was at 3.24, indicating that Microsoft generated $3.24 in revenue for every dollar of fixed assets. However, by June 2024, the data is not available, suggesting uncertainty or a deliberate omission.
The decreasing trend from 2020 to 2023 (2.37 to 1.93) indicates that Microsoft may be becoming less efficient in utilizing its fixed assets to generate revenue. This could be due to factors such as slower sales growth relative to the growth in fixed assets, underutilization of assets, or potentially inefficient allocation of resources.
It would be important for Microsoft to investigate the reasons behind the declining fixed asset turnover to identify areas for improvement in asset utilization and operational efficiency. Additionally, comparing the company's performance with industry benchmarks could provide valuable insights into its competitive position and potential strategies for optimization.
Peer comparison
Jun 30, 2024