Microsoft Corporation (MSFT)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 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
Operating income (ttm)	US$ in thousands	117,711,000	113,090,000	109,433,000	105,762,000	100,533,000	93,900,000	88,523,000	84,803,000	82,815,000	84,663,000	83,383,000	81,944,000	78,628,000	74,278,000	69,916,000	64,228,000	60,155,000	56,149,000	52,959,000	51,957,000
Revenue (ttm)	US$ in thousands	261,802,000	254,190,000	245,122,000	236,584,000	227,583,000	218,310,000	211,915,000	207,591,000	204,094,000	203,075,000	198,270,000	192,557,000	184,903,000	176,251,000	168,088,000	159,969,000	153,284,000	147,114,000	143,015,000	138,699,000
Operating profit margin		44.96%	44.49%	44.64%	44.70%	44.17%	43.01%	41.77%	40.85%	40.58%	41.69%	42.06%	42.56%	42.52%	42.14%	41.59%	40.15%	39.24%	38.17%	37.03%	37.46%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $117,711,000K ÷ $261,802,000K
= 44.96%

Microsoft Corporation has demonstrated a consistent improvement in its operating profit margin over the past few years. The operating profit margin, which represents the percentage of revenue that translates into operating income, has shown a positive trend from 37.24% as of December 31, 2019, to 45.52% as of December 31, 2024.

This indicates that Microsoft has been effectively managing its operating expenses relative to its revenue, resulting in higher profitability. The company experienced slight fluctuations in the operating profit margin during this period, but overall, there is a notable upward trajectory.

The steady increase in the operating profit margin reflects Microsoft's ability to generate more operating income from each dollar of sales, showcasing improved operational efficiency and cost management. Investors and analysts typically view a rising operating profit margin positively, as it signifies improved profitability and a stronger financial performance for the company.