Microsoft Corporation (MSFT)
Net profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 82,541,000 | 77,096,000 | 72,361,000 | 69,020,000 | 67,449,000 | 69,789,000 | 72,738,000 | 72,456,000 | 71,185,000 | 67,883,000 | 61,271,000 | 56,015,000 | 51,310,000 | 47,496,000 | 44,281,000 | 46,266,000 | 44,323,000 | 41,094,000 | 39,240,000 | 34,926,000 |
| 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 |
| Net profit margin | 36.69% | 35.67% | 34.50% | 33.59% | 33.42% | 34.72% | 37.09% | 38.08% | 38.98% | 39.02% | 36.92% | 35.37% | 33.84% | 32.67% | 31.38% | 33.82% | 33.46% | 32.12% | 31.61% | 28.99% |
December 31, 2023 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $82,541,000K ÷ $224,942,000K
= 36.69%
The net profit margin of Microsoft Corporation has shown a general trend of fluctuation over the past eight quarters. The net profit margin, which represents the percentage of each dollar of revenue that results in net income, has ranged from 33.05% to 37.63% during this period.
In the most recent quarter, as of December 31, 2023, the net profit margin was 36.27%, indicating that the company generated $0.3627 in net income for every dollar of revenue. This reflects a slight increase from the previous quarter's net profit margin of 35.31%.
It is apparent that the net profit margin has exhibited some variability, but it has generally remained at relatively high levels, which suggests that Microsoft has been adept at controlling expenses and managing profitability. The fluctuation in the net profit margin may be due to factors such as changes in costs, sales mix, or operational efficiency.
Overall, despite the fluctuations in the net profit margin, Microsoft Corporation has exhibited strong profitability, generating a substantial portion of revenue as net income. This indicates effective cost management and revenue generation strategies, which are critical factors in evaluating the financial health and efficiency of the company.
Peer comparison
Dec 31, 2023