Microsoft Corporation (MSFT)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	110,806,000	105,264,000	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
Revenue (ttm)	US$ in thousands	243,277,000	233,448,000	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
Pretax margin		45.55%	45.09%	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%

September 30, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $110,806,000K ÷ $243,277,000K
= 45.55%

The pretax margin of Microsoft Corporation has shown a generally positive trend over the past few years, reflecting consistent profitability in generating earnings before taxes. The pretax margin has improved steadily from 36.08% in September 2019 to 45.55% in September 2024, indicating the company's ability to efficiently manage its operating expenses relative to its pre-tax income. This upward trend suggests that Microsoft has effectively controlled costs while increasing its operating income, a positive sign for investors and stakeholders. The stability and upward trajectory of the pretax margin demonstrate Microsoft's strong financial performance and effective operational management.