Microsoft Corporation (MSFT)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 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% | 66.82% | 66.37% |
| Operating profit margin | 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% | 34.61% | 33.97% |
| 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% |
| Net profit margin | 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% | 31.61% | 28.99% |
Based on the profitability ratios of Microsoft Corporation, the gross profit margin has shown a consistent improvement from 68.16% in December 2022 to 69.75% in December 2023. This demonstrates an increase in efficiency in the production process and better control over the cost of goods sold.
The operating profit margin also displays a positive trend, with an increase from 40.58% in December 2022 to 44.17% in December 2023. This indicates effective management of operating expenses and an improved ability to generate profits from core business operations.
Similarly, the pretax margin and net profit margin have both exhibited a growth trend, showcasing the company's ability to maintain strong profitability at both pre-tax and net income levels. This suggests effective tax management and overall strong financial performance.
Overall, the consistent improvement in these profitability ratios reflects Microsoft's ability to generate higher profits relative to its revenues, signaling positive financial health and efficient operations.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 14.99% | 15.55% |
| Return on assets (ROA) | 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% | 13.69% | 13.27% |
| Return on total capital | 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% | 27.44% | 27.54% |
| Return on equity (ROE) | 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% | 38.35% | 36.82% |
The profitability ratios of Microsoft Corporation show a consistent and strong performance over the past eight quarters.
The Operating return on assets (Operating ROA) remained above 20% throughout the period, indicating efficient use of assets to generate operating income. This suggests that Microsoft has been able to effectively manage its assets to generate operating profits.
The Return on assets (ROA) also remained consistently high, staying above 17%, demonstrating the company's ability to generate earnings from its total assets. This indicates the effectiveness of Microsoft in utilizing its assets to generate profits.
The Return on total capital and Return on equity (ROE) show consistently high levels, indicating the ability of Microsoft to generate substantial returns for both its capital providers and shareholders. The high Return on equity (ROE) especially reflects strong efficiency in generating profits from shareholders' equity.
Overall, the profitability ratios illustrate Microsoft's ability to generate substantial profits relative to its assets, capital, and equity, signaling a strong and sustainable profitability performance.