Microsoft Corporation (MSFT)
Total asset turnover
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 256,603,000 | 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 |
| Total assets | US$ in thousands | 533,898,000 | 523,013,000 | 484,275,000 | 470,558,000 | 445,785,000 | 411,976,000 | 380,088,000 | 364,552,000 | 359,784,000 | 364,840,000 | 344,607,000 | 340,389,000 | 335,418,000 | 333,779,000 | 308,879,000 | 304,137,000 | 301,001,000 | 301,311,000 | 285,449,000 | 282,794,000 |
| Total asset turnover | 0.48 | 0.47 | 0.48 | 0.48 | 0.48 | 0.51 | 0.54 | 0.55 | 0.56 | 0.54 | 0.55 | 0.54 | 0.52 | 0.50 | 0.51 | 0.50 | 0.48 | 0.47 | 0.48 | 0.47 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $256,603,000K ÷ $533,898,000K
= 0.48
Total asset turnover measures how efficiently a company is utilizing its assets to generate revenue. For Microsoft Corporation, the total asset turnover has shown a fluctuating trend over the past few years. The ratio increased from 0.47 as of December 31, 2019, to 0.48 by March 31, 2020, and remained stable around this level until June 30, 2021. Subsequently, there was a consistent uptrend in the ratio, reaching its peak at 0.56 by September 30, 2022. However, after this peak, there was a slight decline to 0.48 by December 31, 2023, and it remained around this level up to December 31, 2024.
Overall, the increasing trend in total asset turnover indicates that Microsoft has been improving its efficiency in generating revenue from its assets. However, the slight decline towards the end of the period suggests a potential need for the company to carefully manage its asset utilization in order to maintain or enhance its efficiency in the future.
Peer comparison
Dec 31, 2024