Stock Analysis on Net
Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

$24.99

Operating Profit Margin
since 2005

Microsoft Excel

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Calculation

Microsoft Corp., operating profit margin, long-term trends, calculation

Microsoft Excel
Operating profit margin = 100 × Operating income1 ÷ Revenue1
Jun 30, 2024 = 100 × ÷
Jun 30, 2023 = 100 × ÷
Jun 30, 2022 = 100 × ÷
Jun 30, 2021 = 100 × ÷
Jun 30, 2020 = 100 × ÷
Jun 30, 2019 = 100 × ÷
Jun 30, 2018 = 100 × ÷
Jun 30, 2017 = 100 × ÷
Jun 30, 2016 = 100 × ÷
Jun 30, 2015 = 100 × ÷
Jun 30, 2014 = 100 × ÷
Jun 30, 2013 = 100 × ÷
Jun 30, 2012 = 100 × ÷
Jun 30, 2011 = 100 × ÷
Jun 30, 2010 = 100 × ÷
Jun 30, 2009 = 100 × ÷
Jun 30, 2008 = 100 × ÷
Jun 30, 2007 = 100 × ÷
Jun 30, 2006 = 100 × ÷
Jun 30, 2005 = 100 × ÷

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).

1 US$ in millions

Revenue Trend
Revenue shows a steady upward trajectory over the analyzed period, beginning at 39,788 million USD in mid-2005 and rising consistently to reach 245,122 million USD by mid-2024. Some fluctuations are noted, such as a decline from 93,580 million USD in mid-2015 to 85,320 million USD in mid-2016, followed by a recovery and acceleration in growth through subsequent years. The overall pattern indicates sustained business expansion and increasing sales volume.
Operating Income Development
Operating income also demonstrates significant growth, starting at 14,561 million USD in 2005 and expanding to 109,433 million USD in 2024. However, there are notable fluctuations, such as a decrease from 27,161 million USD in 2011 to 21,763 million USD in 2012 and a more pronounced drop from 27,759 million USD in 2014 to 18,161 million USD in 2015. Post-2015, operating income recovers robustly, reflecting improved operational efficiency or cost controls alongside revenue gains.
Operating Profit Margin Analysis
The operating profit margin percentage follows a varied course. Initially, it remains relatively stable in the mid-30s range from 2005 through 2008, peaking near 38.83% in 2011. A significant decrease to 19.41% in 2015 aligns with the aforementioned drop in operating income, indicating reduced profitability during that period. Following 2015, the margin gradually climbs back and exceeds previous highs, reaching 44.64% by 2024. This trend suggests improvements in profit efficiency, likely driven by either enhanced operational management or shifts in product/service mix favoring higher margin activities.
Insights on Operational Performance
The observed trends indicate a company undergoing phases of investment and restructuring, reflected by the periodic dips in profitability and operating income despite growing revenues. The recovery and surpassing of previous margin highs since 2015 highlight a strategic pivot towards more profitable operations or cost optimization. Overall, the company exhibits increasing revenue base and strengthening profitability, suggesting a mature organization improving its operational leverage over time.

Comparison to Competitors

Microsoft Corp., operating profit margin, long-term trends, comparison to competitors

Microsoft Excel
Microsoft Corp. Accenture PLC Adobe Inc. Cadence Design Systems Inc. CrowdStrike Holdings Inc. Fair Isaac Corp. Intuit Inc. Oracle Corp. Palantir Technologies Inc. Palo Alto Networks Inc. Salesforce Inc. ServiceNow Inc. Synopsys Inc. Workday Inc.
Jun 30, 2024
Jun 30, 2023
Jun 30, 2022
Jun 30, 2021
Jun 30, 2020
Jun 30, 2019
Jun 30, 2018
Jun 30, 2017
Jun 30, 2016
Jun 30, 2015
Jun 30, 2014
Jun 30, 2013
Jun 30, 2012
Jun 30, 2011
Jun 30, 2010
Jun 30, 2009
Jun 30, 2008
Jun 30, 2007
Jun 30, 2006
Jun 30, 2005

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).