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.