Microsoft Corporation (MSFT)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 101,210,000 | 95,023,000 | 89,311,000 | 85,071,000 | 82,588,000 | 84,764,000 | 83,716,000 | 82,634,000 | 79,680,000 | 75,502,000 | 71,102,000 | 65,119,000 | 60,726,000 | 56,474,000 | 53,036,000 | 52,210,000 | 49,853,000 | 46,153,000 | 43,688,000 | 41,772,000 |
| Revenue (ttm) | US$ in thousands | 224,942,000 | 216,125,000 | 209,732,000 | 205,479,000 | 201,806,000 | 201,002,000 | 196,109,000 | 190,298,000 | 182,625,000 | 173,955,000 | 165,936,000 | 158,374,000 | 151,630,000 | 145,394,000 | 141,098,000 | 136,782,000 | 132,460,000 | 127,934,000 | 124,121,000 | 120,489,000 |
| Pretax margin | 44.99% | 43.97% | 42.58% | 41.40% | 40.92% | 42.17% | 42.69% | 43.42% | 43.63% | 43.40% | 42.85% | 41.12% | 40.05% | 38.84% | 37.59% | 38.17% | 37.64% | 36.08% | 35.20% | 34.67% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $101,210,000K ÷ $224,942,000K
= 44.99%
The pretax margin, which indicates the percentage of each dollar of revenue that remains as profit before taxes are deducted, has shown a generally positive trend for Microsoft Corporation over the past eight quarters. The company's pretax margin has consistently remained above 40%, indicating strong profitability and efficient cost management.
The upward trend from 40.47% in Q4 2022 to 44.47% in Q4 2023 suggests that Microsoft has been effectively increasing its profitability. This improvement may be attributed to various factors, such as effective cost controls, higher revenue generation, or improved operational efficiency.
However, it's important to note that while an increasing pretax margin is generally positive, it is only one aspect of a company's overall financial health. Therefore, it should be considered in conjunction with other financial metrics and qualitative factors to obtain a comprehensive understanding of the company's performance.
Peer comparison
Dec 31, 2023