Microsoft Corporation (MSFT)

Total asset turnover

		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	Sep 30, 2019
Revenue (ttm)	US$ in thousands	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	127,934,000
Total assets	US$ in thousands	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	278,955,000
Total asset turnover		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	0.46

September 30, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $243,277,000K ÷ $523,013,000K
= 0.47

The total asset turnover ratio for Microsoft Corporation has been relatively stable over the past few quarters, ranging between 0.46 and 0.56. This ratio indicates the company's efficiency in generating sales revenue from its total assets. A total asset turnover ratio of less than 1 suggests that Microsoft generates less than a dollar of revenue for every dollar of assets it owns.

In Microsoft's case, the decreasing trend in the total asset turnover ratio from 0.56 in Mar 31, 2023, to 0.47 in Sep 30, 2024, could indicate potential inefficiencies in asset utilization or challenges in increasing sales in relation to asset investments.

It is essential for Microsoft to closely monitor and analyze the factors contributing to fluctuations in the total asset turnover ratio to ensure optimal asset utilization and overall financial performance. Further investigation into the company's operational efficiency, asset management strategies, and revenue generation capabilities may be necessary to address any underlying issues impacting the total asset turnover ratio.