Microsoft (MSFT) Return on Invested Capital (ROIC)

Price: $417
Market Cap: $3.10T
Avg Volume: 19.54M
Country: US
Industry: Software - Infrastructure
Sector: Technology
Beta: 0.904
52W Range: $362.9-468.35
Website: Microsoft

Return on Invested Capital (ROIC) Summary

Microsoft's ROIC measures how effectively the company uses its invested capital to generate profits:

  • Annual: 27.95%
  • Quarterly: 7.48%
  • TTM: 27.76%

What is ROIC?

Return on Invested Capital (ROIC) measures how effectively a company uses its capital from debt and equity to generate profits. ROIC is a useful metric for comparing the efficiency of capital allocation between different companies or across time periods within the same company. A higher ROIC indicates a more efficient use of capital.

Related Metrics

Other important metrics to assess Microsoft's profitability include:

  • ROE (Return on Equity) - measures the return generated on shareholders' equity:
    • Annual: 32.83%
    • Quarterly: 8.57%
    • TTM: 34.56%
  • ROA (Return on Assets) - measures the return generated on the company's assets:
    • Annual: 17.21%
    • Quarterly: 4.72%
    • TTM: 17.31%

These metrics provide insights into Microsoft's profitability and efficiency in using its capital and assets to generate returns. Comparing these ratios with industry benchmarks can offer a deeper understanding of the company's performance.

Annual ROIC

27.95%

Quarterly ROIC

7.48%

TTM ROIC

27.76%

Microsoft Historical ROIC
33.49%33.49%26.79%26.79%20.09%20.09%13.40%13.40%6.70%6.70%0.00%0.00%ROIC201620162017201720182018201920192020202020212021202220222023202320242024
Historical ROE
43.68%43.68%34.94%34.94%26.21%26.21%17.47%17.47%8.74%8.74%0.00%0.00%ROE201620162017201720182018201920192020202020212021202220222023202320242024
Historical ROA
19.94%19.94%15.95%15.95%11.96%11.96%7.97%7.97%3.99%3.99%0.00%0.00%ROA201620162017201720182018201920192020202020212021202220222023202320242024

Microsoft Historical Profitability Metrics

The table below shows various profitability metrics for each year, with the latest data available for the last fiscal year 2024.

Year ROIC ROE ROA
2024 27.95% 32.83% 17.21%
2023 28.30% 35.09% 17.56%
2022 33.49% 43.68% 19.94%
2021 30.10% 43.15% 18.36%
2020 24.34% 37.43% 14.70%
2019 22.11% 38.35% 13.69%
2018 10.02% 20.03% 6.40%
2017 14.23% 29.06% 10.18%
2016 16.65% 28.53% 10.62%
2015 10.37% 15.23% 6.99%