Microsoft Corporation (MSFT)
Operating return on assets (Operating ROA)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 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 | 45,690,000 | 42,959,000 | 40,933,000 |
| Total assets | US$ in thousands | 470,558,000 | 445,785,000 | 411,976,000 | 380,088,000 | 364,552,000 | 359,784,000 | 364,840,000 | 344,607,000 | 340,389,000 | 335,418,000 | 333,779,000 | 308,879,000 | 304,137,000 | 301,001,000 | 301,311,000 | 285,449,000 | 282,794,000 | 278,955,000 | 286,556,000 | 263,281,000 |
| Operating ROA | 21.36% | 21.06% | 21.49% | 22.31% | 22.72% | 23.53% | 22.85% | 23.78% | 23.10% | 22.14% | 20.95% | 20.79% | 19.78% | 18.65% | 17.58% | 18.20% | 17.44% | 16.38% | 14.99% | 15.55% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $100,533,000K ÷ $470,558,000K
= 21.36%
The operating return on assets (operating ROA) for Microsoft Corporation has shown a consistent and relatively strong performance over the past eight quarters. The operating ROA has ranged from 21.06% to 23.78% during this period, with a slight declining trend in recent quarters. This indicates that Microsoft has been generating a relatively high level of operating income in relation to its total assets. The decline in the operating ROA from 23.53% in September 2022 to 21.36% in December 2023 may suggest a decrease in operating efficiency or a change in the asset base of the company. Further analysis of the company's financial and operational performance would be needed to fully understand the factors driving these trends. Nevertheless, the overall stability and relatively high level of operating ROA reflect Microsoft's ability to generate favorable returns from its operating activities relative to its asset base.
Peer comparison
Dec 31, 2023