Microsoft Corporation (MSFT)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	268,477,000	206,223,000	166,542,000	141,988,000	118,304,000
ROE		32.83%	35.09%	43.68%	43.15%	37.43%

June 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $88,136,000K ÷ $268,477,000K
= 32.83%

Microsoft Corporation's return on equity (ROE) has shown a mostly positive trend over the past five years, increasing from 37.43% as of June 30, 2020, to a peak of 43.68% as of June 30, 2022. This upward trajectory indicates that the company has been effectively utilizing shareholder equity to generate profits. However, there was a slight decrease in ROE to 35.09% as of June 30, 2023, followed by a more notable decline to 32.83% as of June 30, 2024.

The fluctuations in ROE may reflect changes in the company's profitability, capital structure, or overall business performance during the periods under consideration. It is essential for investors and stakeholders to closely monitor these changes to understand the factors influencing Microsoft's return on equity and assess the company's financial health and efficiency in generating returns for its shareholders.