Microsoft Corporation (MSFT)

Total asset turnover

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Revenue US$ in thousands 281,724,000 245,122,000 211,915,000 198,270,000 168,088,000
Total assets US$ in thousands 619,003,000 512,163,000 411,976,000 364,840,000 333,779,000
Total asset turnover 0.46 0.48 0.51 0.54 0.50

June 30, 2025 calculation

Total asset turnover = Revenue ÷ Total assets
= $281,724,000K ÷ $619,003,000K
= 0.46

The total asset turnover ratio for Microsoft Corporation demonstrates a relatively stable but slightly declining trend over the period from June 30, 2021, to June 30, 2025.

In fiscal year 2021, the ratio was 0.50, indicating that for every dollar of total assets, Microsoft generated approximately $0.50 in revenue. This ratio increased marginally to 0.54 in fiscal year 2022, reflecting improved efficiency in utilizing its assets to generate sales during that year.

However, in subsequent years, the ratio experienced a slight decline: it decreased to 0.51 in 2023, then further to 0.48 in 2024, and finally to 0.46 in 2025. This downward trajectory suggests that the company's asset utilization efficiency has diminished modestly over the recent periods, potentially indicating increased asset intensity or reduced asset turnover efficiency relative to prior years.

Overall, the trend indicates a gradual reduction in the company's effectiveness in converting its asset base into revenue, although the shifts are relatively moderate and do not reflect any abrupt changes in operational efficiency during the analyzed timeframe.


See also:

Microsoft Corporation Total Asset Turnover