Microsoft Corporation (MSFT)

Total asset turnover

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	127,934,000	124,121,000	120,489,000
Total assets	US$ in thousands	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	278,955,000	286,556,000	263,281,000
Total asset turnover		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	0.46	0.43	0.46

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $224,942,000K ÷ $470,558,000K
= 0.48

The total asset turnover ratio measures a company's ability to generate sales from its total assets. A higher ratio indicates more efficient utilization of assets to generate sales revenue.

Looking at the total asset turnover figures for Microsoft Corporation over the past eight quarters, the ratio has shown fluctuations. The ratio declined from 0.56 in March 2022 to 0.48 in December 2023, indicating a reduction in the company's ability to generate sales from its total assets during this period.

The declining trend may suggest a decrease in the efficiency of asset utilization for revenue generation. However, it is important to consider industry and company-specific factors that could be influencing this trend, such as changes in product lines, acquisitions, or shifts in business strategy.

Further analysis of Microsoft's operational and financial performance alongside the total asset turnover ratio will provide a more comprehensive understanding of the company's asset utilization and sales generation efficiency.