Microsoft Corporation (MSFT)
Return on assets (ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 88,136,000 | 72,361,000 | 72,738,000 | 61,271,000 | 44,281,000 |
| Total assets | US$ in thousands | 512,163,000 | 411,976,000 | 364,840,000 | 333,779,000 | 301,311,000 |
| ROA | 17.21% | 17.56% | 19.94% | 18.36% | 14.70% |
June 30, 2024 calculation
ROA = Net income ÷ Total assets
= $88,136,000K ÷ $512,163,000K
= 17.21%
Based on the data provided, Microsoft Corporation's return on assets (ROA) has shown a positive trend over the past five years. In June 2020, the ROA was 14.70%, which increased to 18.36% in June 2021. The trend continued with a further increase to 19.94% in June 2022, indicating improved efficiency in generating profits from its assets. However, in the following years, there was a slight decline in ROA to 17.56% in June 2023 and 17.21% in June 2024.
Overall, Microsoft's ROA demonstrates that the company has been effectively utilizing its assets to generate returns for shareholders, with a notable increase in efficiency from 2020 to 2022. The slight decline in 2023 and 2024 could be attributed to various factors such as changes in the business environment, investments in new ventures, or fluctuations in asset values. Further analysis of Microsoft's financial performance and strategic decisions would provide more insights into the factors influencing its ROA trends.
Peer comparison
Jun 30, 2024