Microsoft Corporation (MSFT)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 112,887,000 | 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 |
| Revenue (ttm) | US$ in thousands | 256,603,000 | 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 |
| Pretax margin | 43.99% | 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% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $112,887,000K ÷ $256,603,000K
= 43.99%
Microsoft Corporation has shown a consistently strong performance in terms of its pretax margin over the period from December 31, 2019, to December 31, 2024. The pretax margin, which indicates the percentage of revenue that remains as pre-tax profit after deducting all operating expenses, has shown an increasing trend during this time frame.
The pretax margin for Microsoft increased from 37.64% as of December 31, 2019, to 43.99% as of December 31, 2024. This demonstrates the company's ability to effectively manage its expenses while increasing its profitability over the years.
There were fluctuations in the pretax margin during the period, with some quarters showing slight decreases followed by subsequent increases. However, the overall trend has been positive, indicating that Microsoft has been able to efficiently control its costs and improve its operational efficiency.
The most notable improvements in pretax margin occurred from March 31, 2021, to December 31, 2023, where the margin increased significantly from 41.12% to 44.99%. This demonstrates the company's ability to drive revenue growth while effectively managing its expenses.
Overall, Microsoft's pretax margin reflects a strong financial performance and efficient cost management, which is important for sustained profitability and shareholder value creation.
Peer comparison
Dec 31, 2024