Microsoft Corporation (MSFT)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	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	39,240,000	34,926,000
Total stockholders’ equity	US$ in thousands	238,268,000	220,714,000	206,223,000	194,683,000	183,136,000	173,566,000	166,542,000	162,924,000	160,010,000	151,978,000	141,988,000	134,505,000	130,236,000	123,392,000	118,304,000	114,501,000	110,109,000	106,061,000	102,330,000	94,864,000
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%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $82,541,000K ÷ $238,268,000K
= 34.64%

The return on equity (ROE) for Microsoft Corporation has shown a declining trend over the past eight quarters. The ROE decreased from 44.47% in March 2022 to 34.64% in December 2023. This downward trend suggests a decrease in the profitability generated from shareholders' equity during this period.

The decreasing trend in ROE may indicate that Microsoft Corporation's ability to generate profits from shareholders' equity has diminished. This could be due to a variety of factors such as increasing expenses, decreasing revenues, or changes in the capital structure. It may be valuable to further investigate the causes behind this declining trend, as well as potentially identifying strategies to reverse the trend and improve the company's profitability in relation to shareholders' equity.