Microsoft Corporation (MSFT)
Total 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 |
| Total assets | US$ in thousands | 512,163,000 | 411,976,000 | 364,840,000 | 333,779,000 | 301,311,000 |
| Total asset turnover | 0.48 | 0.51 | 0.54 | 0.50 | 0.47 |
June 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $245,122,000K ÷ $512,163,000K
= 0.48
The total asset turnover ratio measures a company's efficiency in generating revenue from its total assets. For Microsoft Corporation, the total asset turnover has shown a slight upward trend from 0.47 in June 2020 to 0.48 in June 2024. This indicates that Microsoft is becoming more efficient in utilizing its assets to generate sales. However, there was a peak in June 2022 at 0.54, suggesting a particularly strong performance in asset utilization during that period.
Overall, the fluctuation in the total asset turnover ratio for Microsoft Corporation reflects variations in the company's operational efficiency and effectiveness in utilizing its assets to drive revenue generation. It is essential for the company to maintain a balance between asset utilization and revenue generation to ensure sustainable growth and profitability in the long term.
Peer comparison
Jun 30, 2024