Microsoft Corporation (MSFT)
Gross profit margin
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 171,008,000 | 146,052,000 | 135,620,000 | 115,856,000 | 96,937,000 |
| Revenue | US$ in thousands | 245,122,000 | 211,915,000 | 198,270,000 | 168,088,000 | 143,015,000 |
| Gross profit margin | 69.76% | 68.92% | 68.40% | 68.93% | 67.78% |
June 30, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $171,008,000K ÷ $245,122,000K
= 69.76%
The gross profit margin of Microsoft Corporation has shown a consistent upward trend over the past five years. Starting at 67.78% as of June 30, 2020, it increased to 69.76% as of June 30, 2024. This indicates that Microsoft has been effectively managing its production costs and pricing strategies, leading to a higher percentage of revenue retained after accounting for the cost of goods sold. The steady improvement in the gross profit margin reflects the company's operational efficiency and ability to generate value from its core business activities. Overall, the rising gross profit margin demonstrates Microsoft's strength in optimizing its cost structure and maximizing profitability.
Peer comparison
Jun 30, 2024