Microsoft Corporation (MSFT)
Operating return on assets (Operating ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 109,433,000 | 88,523,000 | 83,383,000 | 69,916,000 | 52,959,000 |
| Total assets | US$ in thousands | 512,163,000 | 411,976,000 | 364,840,000 | 333,779,000 | 301,311,000 |
| Operating ROA | 21.37% | 21.49% | 22.85% | 20.95% | 17.58% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $109,433,000K ÷ $512,163,000K
= 21.37%
Analyzing Microsoft Corporation's Operating Return on Assets (Operating ROA) over the past five years, we observe a consistent upward trend, indicating the company's improved efficiency in generating profits from its assets. The operating ROA has increased from 17.58% as of June 30, 2020, to 21.37% as of June 30, 2024.
This upward trajectory suggests that Microsoft has been successful in utilizing its assets more effectively to generate operating income. The rise in operating ROA indicates the company's ability to efficiently manage its operations and convert its assets into profits.
Overall, the increasing trend in Microsoft's Operating ROA reflects positively on the company's operational efficiency and profitability, demonstrating its ability to generate higher returns from its asset base over the years.
Peer comparison
Jun 30, 2024