Microsoft Corporation (MSFT)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 533,898,000 | 523,013,000 | 484,275,000 | 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 |
| Operating ROA | 21.88% | 21.43% | 21.84% | 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% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $116,818,000K ÷ $533,898,000K
= 21.88%
Operating Return on Assets (Operating ROA) is a key financial metric that measures a company's ability to generate operating profits from its assets. For Microsoft Corporation, the Operating ROA has shown a generally increasing trend over the past few years, indicating improved efficiency in generating profits from its assets.
Starting at 17.44% on December 31, 2019, Microsoft's Operating ROA increased steadily, reaching its peak at 23.10% on December 31, 2021. This growth trajectory reflects the company's effective management of its assets to drive operating profitability.
Although there was a slight dip to 21.06% on September 30, 2023, Microsoft was able to recover and maintain an Operating ROA of around 21-22% in the following periods. This stability suggests the company's sustained focus on optimizing asset utilization to maximize operating returns.
It is worth noting that having a high and stable Operating ROA like Microsoft indicates strong operational efficiency and effectiveness in capital allocation, which can be attractive to investors and stakeholders as it signals the company's ability to generate profits from its assets. Continued monitoring of Operating ROA trends will provide valuable insights into Microsoft's operational performance and asset utilization efficiency.
Peer comparison
Dec 31, 2024