Microsoft Corporation (MSFT)
Operating return on assets (Operating ROA)
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 88,523,000 | 83,383,000 | 69,916,000 | 52,959,000 | 42,959,000 |
| Total assets | US$ in thousands | 411,976,000 | 364,840,000 | 333,779,000 | 301,311,000 | 286,556,000 |
| Operating ROA | 21.49% | 22.85% | 20.95% | 17.58% | 14.99% |
June 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $88,523,000K ÷ $411,976,000K
= 21.49%
The operating return on assets (operating ROA) for Microsoft Corporation has been consistently strong over the past five years, with a notable upward trend. In Jun 30, 2023, Microsoft's operating ROA stood at 21.49%, marking a slight decrease from the previous year's 22.85%, but still maintaining a high level of profitability. This suggests that Microsoft efficiently utilizes its assets to generate operating income. The steady increase in operating ROA over the years reflects the company's ability to generate more operating income from its assets, indicating effective management and operational efficiency. Overall, the trend in Microsoft's operating ROA demonstrates the company's sustained profitability and effective asset utilization.
Peer comparison
Jun 30, 2023