Microsoft Corporation (MSFT)
Operating return on assets (Operating ROA)
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 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 | 45,690,000 |
| Total assets | US$ in thousands | 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 | 278,955,000 |
| Operating ROA | 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% | 16.38% |
September 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $112,060,000K ÷ $523,013,000K
= 21.43%
Operating return on assets (ROA) measures the efficiency with which Microsoft Corporation generates operating income relative to its total assets. A higher operating ROA indicates better asset utilization and profitability.
Analyzing the trend in Microsoft's operating ROA over the past few quarters, we can observe a generally positive performance. The operating ROA has been relatively stable, ranging from 16.38% in September 2019 to a peak of 23.78% in March 2022. This indicates that Microsoft has been consistently effective in generating operating income from its asset base.
The slight fluctuations in operating ROA over the periods suggest that Microsoft has maintained a strong operational performance amidst changing economic and market conditions. The company has demonstrated a consistent ability to maximize returns on its assets, with the metric hovering above 20% for most of the periods in consideration.
Overall, the trend in Microsoft's operating ROA reflects a solid operational efficiency and effective management of assets to drive profitability. This performance is important for investors as it signifies the company's ability to generate operating income from its asset base, ultimately contributing to shareholder value.
Peer comparison
Sep 30, 2024