Microsoft Corporation (MSFT)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	287,723,000	253,152,000	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
ROE		31.55%	34.04%	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%

September 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $90,767,000K ÷ $287,723,000K
= 31.55%

Microsoft Corporation's return on equity (ROE) has shown a generally positive trend over the past few years, indicating the company's ability to generate profit from shareholders' equity. The ROE has consistently been above 30%, reflecting strong profitability and efficient use of equity capital.

There was a slight dip in ROE in the most recent quarter, dropping from 34.64% in December 2023 to 31.55% in September 2024. However, the ROE remains at a healthy level, indicating that Microsoft continues to effectively utilize its equity to generate earnings.

Microsoft's ROE peaked at 44.67% in December 2021, showcasing exceptional profitability and efficiency in that period. Despite some fluctuations, the company has maintained a strong ROE above 30% for the past several years, reflecting consistent profitability and value creation for shareholders.

Overall, Microsoft Corporation's ROE performance demonstrates a solid financial position and efficient management of shareholder equity, which bodes well for the company's future growth and sustainability.