Microsoft Corporation (MSFT)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 179,069,000 | 171,451,000 | 165,359,000 | 158,735,000 | 151,597,000 | 146,052,000 | 142,094,000 | 139,110,000 | 138,619,000 | 135,620,000 | 132,345,000 | 127,261,000 | 121,375,000 | 115,856,000 | 109,389,000 | 104,774,000 | 100,440,000 | 96,937,000 | 94,548,000 | 90,903,000 |
| 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 |
| Gross profit margin | 69.78% | 70.48% | 70.83% | 70.57% | 70.14% | 69.64% | 69.15% | 68.93% | 68.96% | 69.16% | 69.55% | 69.68% | 69.77% | 69.82% | 69.07% | 69.10% | 69.08% | 68.70% | 69.12% | 68.63% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $179,069,000K ÷ $256,603,000K
= 69.78%
Based on the provided data for Microsoft Corporation's gross profit margin over a series of reporting periods, we observe fluctuations in the margin but with a general increasing trend until December 31, 2024, which recorded a slight decrease. The gross profit margin started at 68.63% on December 31, 2019, and steadily increased to a peak of 70.83% on March 31, 2024.
This indicates that Microsoft efficiently managed its production costs and pricing strategies during this period, allowing the company to retain a higher percentage of revenue after accounting for the cost of goods sold. The downward trend observed in the last quarter of 2024, where the gross profit margin dropped to 69.78%, might indicate potential challenges in maintaining cost efficiency or changes in the company's pricing strategies.
Overall, Microsoft's gross profit margin performance demonstrates a generally positive trend with fluctuations along the way. It would be important to further analyze the factors influencing the fluctuations to assess the sustainability of the company's profitability in the upcoming periods.
Peer comparison
Dec 31, 2024