Price to Operating Profit (P/OP)
since 2005
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Selected Financial Data since 2005
- Debt to Equity since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
- Aggregate Accruals
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Calculation
Microsoft Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Jul 30, 2025 | = | ÷ | = | ÷ | |||||||
| Jul 30, 2024 | = | ÷ | = | ÷ | |||||||
| Jul 27, 2023 | = | ÷ | = | ÷ | |||||||
| Jul 28, 2022 | = | ÷ | = | ÷ | |||||||
| Jul 29, 2021 | = | ÷ | = | ÷ | |||||||
| Jul 31, 2020 | = | ÷ | = | ÷ | |||||||
| Aug 1, 2019 | = | ÷ | = | ÷ | |||||||
| Aug 3, 2018 | = | ÷ | = | ÷ | |||||||
| Aug 2, 2017 | = | ÷ | = | ÷ | |||||||
| Jul 28, 2016 | = | ÷ | = | ÷ | |||||||
| Jul 31, 2015 | = | ÷ | = | ÷ | |||||||
| Jul 31, 2014 | = | ÷ | = | ÷ | |||||||
| Jul 30, 2013 | = | ÷ | = | ÷ | |||||||
| Jul 26, 2012 | = | ÷ | = | ÷ | |||||||
| Jul 28, 2011 | = | ÷ | = | ÷ | |||||||
| Jul 30, 2010 | = | ÷ | = | ÷ | |||||||
| Jul 30, 2009 | = | ÷ | = | ÷ | |||||||
| Jul 31, 2008 | = | ÷ | = | ÷ | |||||||
| Aug 3, 2007 | = | ÷ | = | ÷ | |||||||
| Aug 25, 2006 | = | ÷ | = | ÷ | |||||||
| Aug 26, 2005 | = | ÷ | = | ÷ |
Based on: 10-K (reporting date: 2025-06-30), 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$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Microsoft Corp. Annual Report.
- Share Price Trend
- The share price exhibited notable fluctuations over the time frame analyzed. Initially, from 2005 to early 2007, it rose from approximately $80 to $112, then experienced a sharp decline between 2007 and 2009, dropping to below $24. Subsequently, from 2009 onward, the share price showed a consistent upward trajectory, reaching a peak of over $513 by 2025. This indicates a strong recovery and sustained growth in market valuation during the latter period.
- Operating Profit per Share
- The operating profit per share generally followed an increasing trend. It started at $1.36 in 2005, increased gradually to around $3.24 by 2011, with a short dip in the 2012 figure. From 2013 to 2015, the profit fluctuated slightly but exhibited more pronounced growth from 2016 onwards, reaching over $17 by 2025. This trend suggests improving operational efficiency or profitability on a per-share basis over time.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio demonstrated significant variability. Initially high in the mid-2000s, the ratio ranged between approximately 48 and 59, reflecting elevated market prices relative to operating profits. From 2007 to 2010, the ratio compressed sharply to values below 10.6, likely corresponding to the period when share prices declined while profits remained relatively stable or grew. Post-2010, the ratio gradually increased again, fluctuating between about 21 and 31, indicating a rise in market valuation relative to operating profits, though not reaching the earlier highs. The ratio shows periods of market correction followed by moderate stabilization and slight escalation in valuation metrics.
- Overall Insights
- The data reveals a period of volatility during the late 2000s, with sharp declines in share price and P/OP ratio indicating potential external market shocks or internal challenges. Thereafter, both share price and operating profit per share have steadily improved, contributing to higher valuations and profitability levels. The gradually increasing P/OP ratio in the recent years suggests growing investor confidence and market willingness to pay a premium for each dollar of operating profit. This reflects a positive assessment of future earnings potential or growth prospects during the analyzed period.
Comparison to Competitors
Microsoft Corp., P/OP, long-term trends, comparison to competitors
| Microsoft Corp. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | Fair Isaac Corp. | Intuit Inc. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jul 30, 2025 | |||||||||||||||
| Jul 30, 2024 | |||||||||||||||
| Jul 27, 2023 | |||||||||||||||
| Jul 28, 2022 | |||||||||||||||
| Jul 29, 2021 | |||||||||||||||
| Jul 31, 2020 | |||||||||||||||
| Aug 1, 2019 | |||||||||||||||
| Aug 3, 2018 | |||||||||||||||
| Aug 2, 2017 | |||||||||||||||
| Jul 28, 2016 | |||||||||||||||
| Jul 31, 2015 | |||||||||||||||
| Jul 31, 2014 | |||||||||||||||
| Jul 30, 2013 | |||||||||||||||
| Jul 26, 2012 | |||||||||||||||
| Jul 28, 2011 | |||||||||||||||
| Jul 30, 2010 | |||||||||||||||
| Jul 30, 2009 | |||||||||||||||
| Jul 31, 2008 | |||||||||||||||
| Aug 3, 2007 | |||||||||||||||
| Aug 25, 2006 | |||||||||||||||
| Aug 26, 2005 |
Based on: 10-K (reporting date: 2025-06-30), 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).