Microsoft Corporation (MSFT)
Total asset turnover
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 209,747,000 | 196,109,000 | 165,936,000 | 140,503,000 | 123,495,000 |
| Total assets | US$ in thousands | 411,976,000 | 364,840,000 | 333,779,000 | 301,311,000 | 286,556,000 |
| Total asset turnover | 0.51 | 0.54 | 0.50 | 0.47 | 0.43 |
June 30, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $209,747,000K ÷ $411,976,000K
= 0.51
The total asset turnover measures the efficiency of a company's use of its assets to generate sales. A higher total asset turnover indicates that the company is more efficient in using its assets to generate revenue.
Analyzing the trend in Microsoft Corporation's total asset turnover over the past five years, we observe a generally increasing trend. This suggests that Microsoft has been improving its efficiency in generating sales in relation to its total assets.
In the fiscal year ending June 30, 2019, Microsoft had a total asset turnover of 0.44, which increased to 0.47 in 2020, indicating an improvement in asset utilization. This trend continued with a further increase to 0.50 in 2021 and a subsequent increase to 0.54 in 2022. However, in the most recent fiscal year ending June 30, 2023, the total asset turnover slightly decreased to 0.51.
Overall, Microsoft's total asset turnover has shown a positive trend, signaling the company's improving efficiency in generating sales from its total assets. This trend indicates that Microsoft has been effectively utilizing its assets to drive revenue growth, potentially enhancing its overall financial performance.
Peer comparison
Jun 30, 2023