Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

$24.99

Return on Assets (ROA)
since 2005

Microsoft Excel

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Calculation

Microsoft Corp., ROA, long-term trends, calculation

Microsoft Excel

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$ in millions


The annual financial data reveals several notable trends over the examined periods. Net income demonstrates an overall upward trajectory, despite some fluctuations. Beginning at 12,254 million USD in mid-2005, it rises steadily with intermittent declines, reaching a peak of 101,832 million USD by mid-2025. There are instances of decreases, such as between 2011 and 2012, and again from 2013 to 2014, but the prevailing pattern is consistent growth in profitability over the long term.

Total assets follow a similarly upward path. Starting at 70,815 million USD in 2005, total assets expand steadily with minor variations interrupted mainly by accelerated growth in more recent years. The asset base increases particularly sharply from the early 2010s onward, culminating at 619,003 million USD by mid-2025, nearly nine times the value at the starting point. This indicates significant asset accumulation and scale expansion over the period.

The Return on Assets (ROA) metric exhibits more volatility throughout the time span. Initially, ROA rises from 17.3% in 2005 to a peak of 24.29% in 2008, indicating improved efficiency in asset utilization. However, it then faces a declining trend through 2014, dropping to a low of 6.4%. Subsequently, ROA recovers and stabilizes around the high teens to low twenties percentile, reaching 16.45% in 2025. This fluctuation suggests periods of varying operational efficiency, possibly impacted by changes in profit margins or asset structure.

In summary, the data reflects robust growth in both net income and total assets over the two-decade horizon, signifying expansion and increased scale. However, the ROA fluctuations indicate that asset utilization efficiency has varied, with a strong performance in the earlier and later years but weaker levels during the mid-2010s. Overall, the entity demonstrates a capacity for growth in size and profitability while experiencing phases of adjustment in return metrics.

Net Income
Exhibited a strong upward trend, increasing from 12,254 million USD in 2005 to 101,832 million USD in 2025, with intermittent declines primarily around 2011-2012 and 2013-2014.
Total Assets
Consistently grew over the period, accelerating in later years, from 70,815 million USD in 2005 to 619,003 million USD in 2025, suggesting expanded scale and asset accumulation.
Return on Assets (ROA)
Varied significantly, peaking at 24.29% in 2008, declining to a low of 6.4% in 2014, then recovering and stabilizing near 16.45% by 2025, indicating fluctuating asset efficiency across periods.

Comparison to Competitors

Microsoft Corp., ROA, long-term trends, comparison to competitors

Microsoft Excel

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).


Comparison to Sector (Software & Services)


Comparison to Industry (Information Technology)