Microsoft Corporation (MSFT)

Operating 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
Operating income (ttm)	US$ in thousands	116,818,000	112,060,000	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	49,323,000
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
Operating profit margin		45.52%	46.06%	45.30%	44.69%	43.45%	42.21%	41.27%	41.04%	42.12%	42.52%	43.06%	43.05%	42.70%	42.13%	40.55%	39.67%	38.62%	37.53%	37.99%	37.24%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $116,818,000K ÷ $256,603,000K
= 45.52%

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.