Microsoft Corporation (MSFT)

Return on assets (ROA)

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 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
Net income (ttm)	US$ in thousands	101,832,000	96,635,000	92,750,000	90,512,000	88,136,000	86,181,000	82,541,000	77,096,000	72,361,000	69,020,000	67,449,000	69,789,000	72,738,000	72,456,000	71,185,000	67,883,000	61,271,000	56,015,000	51,310,000	47,496,000
Total assets	US$ in thousands	619,003,000	562,624,000	533,898,000	523,013,000	512,163,000	484,275,000	470,558,000	445,785,000	411,976,000	380,088,000	364,552,000	359,784,000	364,840,000	344,607,000	340,389,000	335,418,000	333,779,000	308,879,000	304,137,000	301,001,000
ROA		16.45%	17.18%	17.37%	17.31%	17.21%	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%

June 30, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $101,832,000K ÷ $619,003,000K
= 16.45%

The analysis of Microsoft Corporation's return on assets (ROA) over the periods provided reveals a general trend of growth followed by a gradual decline. Initially, the ROA increased from 15.78% as of September 30, 2020, to reach a peak of approximately 21.03% on March 31, 2022. This upward movement indicates improved efficiency in translating assets into net income, likely driven by better operational performance, strategic initiatives, or favorable market conditions during this period.

Post-March 2022, the ROA exhibits a declining trajectory, reducing to around 17.29% by September 30, 2023. This decline suggests a potential decrease in asset utilization efficiency or a slowdown in profitability growth relative to asset base expansion. Despite this downward trend, the ROA remains substantially higher than the levels observed at the start of the analyzed period, reflecting a generally strong performance.

From December 2023 onward, the ROA exhibits minor fluctuations, with values such as 17.54% in December 2023 and 17.21% in June 2024, before slightly increasing to 17.31% in September 2024. These relatively stable figures imply a period of equilibrium where asset efficiency is maintained with slight variations, potentially attributable to seasonal factors, market dynamics, or changes in operational strategies.

Looking toward the most recent data, the ROA recorded at 17.18% in March 2025, indicating a modest decline compared to the previous year. The trend suggests that while asset profitability remains strong, the rate of return has stabilized at a level that is below its recent peak but still significantly above pre-2022 levels.

Overall, Microsoft has demonstrated a period of robust asset efficiency and profitability growth until early 2022, followed by a phase of stabilization with slight declines in ROA. This pattern reflects dynamic operational conditions, strategic shifts, or market factors influencing asset utilization and profitability over time.