Microsoft Corporation (MSFT)

Pretax margin

Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020
Earnings before tax but after interest (EBT) US$ in thousands 107,787,000 89,311,000 83,716,000 71,102,000 53,036,000
Revenue US$ in thousands 245,122,000 211,915,000 198,270,000 168,088,000 143,015,000
Pretax margin 43.97% 42.14% 42.22% 42.30% 37.08%

June 30, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $107,787,000K ÷ $245,122,000K
= 43.97%

The pretax margin of Microsoft Corporation has shown consistent improvement over the past five years. Starting at 37.08% on June 30, 2020, it increased steadily to reach 43.97% on June 30, 2024. This upward trend indicates that Microsoft has been effectively managing its operating expenses and generating higher pre-tax profits relative to its total revenue. The company's ability to maintain and grow its pretax margin reflects its operational efficiency and strategic decision-making, which bodes well for its overall financial health and sustainability.