Microsoft Corporation (MSFT)

Net 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
Net income (ttm)	US$ in thousands	92,584,000	90,767,000	86,181,000	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
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
Net profit margin		36.08%	37.31%	36.92%	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%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $92,584,000K ÷ $256,603,000K
= 36.08%

Microsoft Corporation's net profit margin has shown fluctuations over the past five years. As of December 31, 2019, the net profit margin stood at 33.46%, indicating that for every dollar of revenue generated, the company retained approximately $0.33 as net profit. The margin increased slightly to 33.82% by March 31, 2020.

Subsequently, there was a decrease in the net profit margin to 31.38% by June 30, 2020. However, Microsoft managed to improve its profitability, with margins reaching 33.84% by December 31, 2020, and further increasing to 35.37% by March 31, 2021.

The trend of increasing net profit margins continued throughout 2021 and into early 2022, reaching a peak of 39.02% by September 30, 2021. However, there was a slight decline in profitability in the following quarters.

As of December 31, 2024, Microsoft's net profit margin stood at 36.08%, which although lower compared to the peak in 2021, remains relatively strong. Overall, the company has demonstrated the ability to maintain healthy profit margins despite some fluctuations, indicating efficient cost management and revenue generation strategies.