Microsoft Corporation (MSFT)

Fixed asset turnover

		Sep 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	243,277,000	233,448,000	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
Property, plant and equipment	US$ in thousands	152,863,000	121,375,000	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
Fixed asset turnover		1.59	1.92	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

September 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $243,277,000K ÷ $152,863,000K
= 1.59

The fixed asset turnover ratio of Microsoft Corporation has displayed a general upward trend over the past few years, indicating an improvement in the company's efficiency in utilizing its fixed assets to generate revenue.

From September 2019 to September 2024, the fixed asset turnover ratio has consistently increased from 3.27 to 1.59, which suggests that Microsoft has been able to generate more revenue for every dollar invested in fixed assets.

Although there was a slight dip in the ratio in the recent period, from 3.32 in March 2020 to 1.59 in September 2024, it is important to note that the ratio is still relatively high, indicating that Microsoft is effectively managing its fixed assets.

Overall, the increasing trend in the fixed asset turnover ratio reflects positively on Microsoft's operational efficiency and ability to optimize its fixed assets for revenue generation.