Microsoft Corporation (MSFT)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 110,722,000 | 91,279,000 | 85,779,000 | 73,448,000 | 55,627,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 268,477,000 | 206,223,000 | 166,542,000 | 141,988,000 | 118,304,000 |
| Return on total capital | 41.24% | 44.26% | 51.51% | 51.73% | 47.02% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $110,722,000K ÷ ($—K + $268,477,000K)
= 41.24%
Microsoft Corporation's return on total capital has shown a consistent upward trend from June 30, 2020, to June 30, 2022, reaching a peak of 51.73%. This indicates that the company has been efficiently utilizing its capital to generate returns for its stakeholders. However, there has been a slight decrease in the return on total capital in the subsequent periods, with values of 44.26% on June 30, 2023, and 41.24% on June 30, 2024. Despite the slight decline, Microsoft's return on total capital remains relatively high, reflecting the company's ability to generate profits from its overall capital investments. It is important for investors and analysts to monitor this key financial metric to assess the company's performance and efficiency in capital utilization over time.
Peer comparison
Jun 30, 2024