Microsoft Corporation (MSFT)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	90,767,000	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	44,281,000	46,266,000	44,323,000	41,094,000
Total assets	US$ in thousands	523,013,000	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	301,311,000	285,449,000	282,794,000	278,955,000
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%

September 30, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $90,767,000K ÷ $523,013,000K
= 17.35%

The return on assets (ROA) of Microsoft Corporation has been relatively stable over the past five years, ranging from 14.70% in September 2020 to a high of 21.03% in March 2022. The ROA has mostly remained above 15% during this period, indicating the company's ability to generate profits from its assets.

The fluctuation in ROA can be attributed to factors such as changes in the company's asset base, efficiency in asset utilization, and profitability. Despite some fluctuations, the overall trend shows a strong performance in terms of generating returns from its assets.

Microsoft's ROA peaked at 21.03% in March 2022, reflecting a period of high profitability relative to its asset base. However, it has since declined slightly but remained above 17%, indicating continued efficiency in utilizing its assets to generate profits.

Overall, Microsoft's ROA demonstrates a solid performance in effectively utilizing its assets to generate profits, with a consistent track record of maintaining a relatively high return on assets over the past five years.