Microsoft Corporation (MSFT)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	224,942,000	216,125,000	209,732,000	205,479,000	201,806,000	201,002,000	196,109,000	190,298,000	182,625,000	173,955,000	165,936,000	158,374,000	151,630,000	145,394,000	141,098,000	136,782,000	132,460,000	127,934,000	124,121,000	120,489,000
Property, plant and equipment	US$ in thousands	112,308,000	102,502,000	95,641,000	88,132,000	82,755,000	77,037,000	74,398,000	70,298,000	67,214,000	63,772,000	59,715,000	54,945,000	51,737,000	47,927,000	44,151,000	41,221,000	40,522,000	38,409,000	36,477,000	33,648,000
Fixed asset turnover		2.00	2.11	2.19	2.33	2.44	2.61	2.64	2.71	2.72	2.73	2.78	2.88	2.93	3.03	3.20	3.32	3.27	3.33	3.40	3.58

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $224,942,000K ÷ $112,308,000K
= 2.00

The fixed asset turnover ratio measures a company's ability to generate net sales from its fixed assets. A higher ratio indicates more efficient utilization of fixed assets to generate sales.

The fixed asset turnover for Microsoft Corporation has been fluctuating over the past eight quarters, ranging from 2.03 to 2.74. The trend shows a gradual decrease in the ratio over the observation period, indicating a potential decrease in the company's efficiency in generating sales from its fixed assets.

The decline in fixed asset turnover could be attributed to various factors, such as changes in the company's sales volume, the value of its fixed assets, or a combination of both. It is essential for investors and stakeholders to delve deeper into the company's financial reports and operational activities to understand the reasons behind the fluctuating trend in fixed asset turnover.