Microsoft Corporation (MSFT)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 70.48% | 70.83% | 70.57% | 70.14% | 69.64% | 69.15% | 68.93% | 68.96% | 69.16% | 69.55% | 69.68% | 69.77% | 69.82% | 69.07% | 69.10% | 69.08% | 68.70% | 69.12% | 68.63% | 67.54% |
| Operating profit margin | 46.06% | 45.30% | 44.69% | 43.45% | 42.21% | 41.27% | 41.04% | 42.12% | 42.52% | 43.06% | 43.05% | 42.70% | 42.13% | 40.55% | 39.67% | 38.62% | 37.53% | 37.99% | 37.24% | 35.71% |
| 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% |
| Net profit margin | 37.31% | 36.92% | 36.69% | 35.67% | 34.50% | 33.59% | 33.42% | 34.72% | 37.09% | 38.08% | 38.98% | 39.02% | 36.92% | 35.37% | 33.84% | 32.67% | 31.38% | 33.82% | 33.46% | 32.12% |
Microsoft Corporation has consistently maintained a strong profitability performance over the past few quarters as indicated by its gross profit margin, operating profit margin, pretax margin, and net profit margin. The company's gross profit margin has been stable, ranging between 68.70% and 70.83%, demonstrating efficient cost management and pricing strategies.
The operating profit margin has shown an upward trend, increasing from 37.53% in September 2020 to 46.06% in September 2024. This improvement reflects the company's ability to control operating expenses while generating higher revenues. Similarly, the pretax margin has also increased steadily, indicating effective management of both operational and non-operational costs.
Microsoft's net profit margin has been consistently strong, ranging from 31.38% to 38.98% over the past few quarters. This indicates that the company has been successful in converting its revenues into profits after considering all expenses and taxes. Overall, Microsoft's profitability ratios reflect its ability to generate healthy profits relative to its revenue, showcasing its strong financial performance.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 17.35% | 17.80% | 17.54% | 17.29% | 17.56% | 18.16% | 18.50% | 19.40% | 19.94% | 21.03% | 20.91% | 20.24% | 18.36% | 18.13% | 16.87% | 15.78% | 14.70% | 16.21% | 15.67% | 14.73% |
| Return on total capital | 34.28% | 36.50% | 36.59% | 36.94% | 36.77% | 36.79% | 37.22% | 39.64% | 40.16% | 40.15% | 39.34% | 38.51% | 38.24% | 36.64% | 34.09% | 32.71% | 31.27% | 30.89% | 30.26% | 28.28% |
| Return on equity (ROE) | 31.55% | 34.04% | 34.64% | 34.93% | 35.09% | 35.45% | 36.83% | 40.21% | 43.68% | 44.47% | 44.49% | 44.67% | 43.15% | 41.65% | 39.40% | 38.49% | 37.43% | 40.41% | 40.25% | 38.75% |
Microsoft Corporation has shown consistent and strong profitability over the periods analyzed, as indicated by its key profitability ratios. The Operating Return on Assets (Operating ROA) has been relatively stable, ranging from 16.38% to 23.78%, with a recent value of 21.43%. This metric reflects the company's ability to generate operating profits from its assets.
The Return on Assets (ROA) has also been robust, varying between 14.70% and 21.03%, with a current value of 17.35%. ROA measures how effectively the company is utilizing its assets to generate profits, with this ratio indicating that Microsoft is efficient in converting its assets into earnings.
Furthermore, the Return on Total Capital and Return on Equity (ROE) ratios have shown a similar positive trend, with values ranging from 28.28% to 44.68% and 31.55% to 44.68%, respectively. These ratios highlight Microsoft's ability to generate returns for both debt and equity holders, demonstrating strong profitability and efficient capital utilization.
Overall, Microsoft Corporation's profitability ratios indicate a consistently strong performance and efficient management of its assets and capital, positioning it as a financially healthy and profitable company.