Return on Assets (ROA)
since 2005
Calculation
Microsoft Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Jun 30, 2026 | 17.64% | = | 100 | × | 133,749) | ÷ | 758,376) |
| Jun 30, 2025 | 16.45% | = | 100 | × | 101,832) | ÷ | 619,003) |
| Jun 30, 2024 | 17.21% | = | 100 | × | 88,136) | ÷ | 512,163) |
| Jun 30, 2023 | 17.56% | = | 100 | × | 72,361) | ÷ | 411,976) |
| Jun 30, 2022 | 19.94% | = | 100 | × | 72,738) | ÷ | 364,840) |
| Jun 30, 2021 | 18.36% | = | 100 | × | 61,271) | ÷ | 333,779) |
| Jun 30, 2020 | 14.70% | = | 100 | × | 44,281) | ÷ | 301,311) |
| Jun 30, 2019 | 13.69% | = | 100 | × | 39,240) | ÷ | 286,556) |
| Jun 30, 2018 | 6.40% | = | 100 | × | 16,571) | ÷ | 258,848) |
| Jun 30, 2017 | 8.80% | = | 100 | × | 21,204) | ÷ | 241,086) |
| Jun 30, 2016 | 8.67% | = | 100 | × | 16,798) | ÷ | 193,694) |
| Jun 30, 2015 | 6.92% | = | 100 | × | 12,193) | ÷ | 176,223) |
| Jun 30, 2014 | 12.81% | = | 100 | × | 22,074) | ÷ | 172,384) |
| Jun 30, 2013 | 15.35% | = | 100 | × | 21,863) | ÷ | 142,431) |
| Jun 30, 2012 | 14.00% | = | 100 | × | 16,978) | ÷ | 121,271) |
| Jun 30, 2011 | 21.30% | = | 100 | × | 23,150) | ÷ | 108,704) |
| Jun 30, 2010 | 21.79% | = | 100 | × | 18,760) | ÷ | 86,113) |
| Jun 30, 2009 | 18.71% | = | 100 | × | 14,569) | ÷ | 77,888) |
| Jun 30, 2008 | 24.29% | = | 100 | × | 17,681) | ÷ | 72,793) |
| Jun 30, 2007 | 22.26% | = | 100 | × | 14,065) | ÷ | 63,171) |
| Jun 30, 2006 | 18.10% | = | 100 | × | 12,599) | ÷ | 69,597) |
| Jun 30, 2005 | 17.30% | = | 100 | × | 12,254) | ÷ | 70,815) |
Based on: 10-K (reporting date: 2026-06-30), 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 financial trajectory from 2005 to 2026 is characterized by a substantial expansion in both net income and the total asset base, although the efficiency of asset utilization, as measured by Return on Assets (ROA), has experienced significant volatility across three distinct phases.
- Net Income Trends
- Net income exhibited moderate growth between 2005 and 2014, followed by a notable contraction in 2015 where earnings fell to 12,193 million US$. Subsequent to 2015, a period of accelerated growth began, with net income increasing more than seven-fold between 2018 and 2026, reaching a projected 133,749 million US$.
- Total Asset Expansion
- The asset base grew consistently throughout the entire period. Total assets increased from 70,815 million US$ in 2005 to 758,376 million US$ by 2026. This growth accelerated significantly after 2016, reflecting a massive scaling of the balance sheet to support operational expansions.
- Return on Assets (ROA) Analysis
- The ROA followed a cyclical pattern. An initial high-efficiency phase occurred between 2005 and 2011, with the ratio peaking at 24.29% in 2008. A subsequent period of decline took place from 2012 to 2018, during which ROA dropped to a low of 6.40% in 2018, indicating that asset growth outpaced earnings growth during this interval.
- A recovery phase is evident from 2019 onward, as ROA rebounded to 13.69% and stabilized between 16% and 20% through 2026. This suggests a successful realignment where earnings growth once again began to keep pace with the expanding asset base.
Overall, the data indicates a transition from a lean, high-margin operational model to a large-scale enterprise model. While the expansion of the asset base initially diluted the return on assets, the recent trend demonstrates a restoration of profitability efficiency despite the significantly larger scale of operations.
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Comparison to Competitors
Microsoft Corp., ROA, long-term trends, comparison to competitors
| Microsoft Corp. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jun 30, 2026 | 17.64% | — | — | — | — | -1.47% | — | — | — | 6.53% | — | — | 6.64% | — | — | 3.83% |
| Jun 30, 2025 | 16.45% | 11.74% | 24.17% | 45.92% | 10.92% | -0.22% | 1.62% | 6.97% | 10.47% | 7.39% | 18.26% | 4.81% | 6.02% | 6.71% | 2.76% | 2.93% |
| Jun 30, 2024 | 17.21% | 12.99% | 18.39% | 26.92% | 11.76% | 1.34% | 3.18% | 4.39% | 9.22% | 7.42% | 7.29% | 12.89% | 4.14% | 6.99% | 17.31% | 8.39% |
| Jun 30, 2023 | 17.56% | 13.41% | 18.23% | 6.66% | 18.36% | -3.65% | 1.23% | 5.55% | 8.58% | 6.33% | 4.64% | 3.03% | 0.21% | 9.96% | 11.90% | -2.72% |
| Jun 30, 2022 | 19.94% | 14.55% | 17.51% | -3.30% | 16.53% | -6.49% | -1.67% | 1.29% | 7.45% | 6.15% | -10.80% | -2.18% | 1.52% | 2.44% | 10.45% | 0.28% |
| Jun 30, 2021 | 18.36% | 13.68% | 17.70% | 0.58% | 15.87% | -3.39% | -0.87% | 4.35% | 13.29% | 10.48% | -16.02% | -4.87% | 6.14% | 2.13% | 8.66% | -3.24% |
| Jun 30, 2020 | 14.70% | 13.78% | 21.66% | — | 14.95% | -10.09% | -1.30% | 3.58% | 16.70% | 8.78% | -43.35% | -2.95% | 0.23% | 1.36% | 8.27% | -7.05% |
| Jun 30, 2019 | 13.69% | 16.04% | 14.22% | — | 29.46% | — | -1.61% | 6.20% | 24.78% | 10.20% | — | -1.24% | 3.61% | 10.41% | 8.31% | -7.58% |
| Jun 30, 2018 | 6.40% | 16.61% | 13.80% | — | 14.01% | — | — | 7.07% | 23.39% | 2.79% | — | -2.54% | 0.61% | -0.69% | 7.04% | -6.49% |
| Jun 30, 2017 | 8.80% | 15.18% | 11.65% | — | 8.44% | — | — | 4.59% | 23.87% | 6.92% | — | -6.30% | 1.02% | -4.39% | 2.53% | -12.89% |
| Jun 30, 2016 | 8.67% | 19.95% | 9.20% | — | 9.69% | — | — | 10.11% | 23.04% | 7.93% | — | -8.18% | -0.37% | -22.22% | 5.09% | -10.62% |
| Jun 30, 2015 | 6.92% | 16.72% | 5.37% | — | 10.74% | — | — | 11.94% | 7.35% | 8.96% | — | -8.40% | -2.46% | -10.98% | 4.48% | -10.51% |
| Jun 30, 2014 | 12.81% | 16.41% | 2.49% | — | 4.95% | — | — | 10.23% | 17.44% | 12.13% | — | -15.32% | -2.54% | -12.59% | 5.43% | -7.93% |
| Jun 30, 2013 | 15.35% | 19.46% | 2.79% | — | 6.76% | — | — | 13.06% | 15.64% | 13.35% | — | -4.99% | -4.89% | -6.31% | 5.68% | -12.43% |
| Jun 30, 2012 | 14.00% | 15.32% | 8.35% | — | 19.24% | — | — | 13.93% | 16.91% | 12.74% | — | 0.18% | -0.28% | -7.81% | 4.40% | — |
| Jun 30, 2011 | 21.30% | 14.48% | 9.26% | — | 4.10% | — | — | 13.62% | 12.41% | 11.62% | — | — | 2.09% | — | 6.57% | — |
| Jun 30, 2010 | 21.79% | 13.87% | 9.52% | — | 7.31% | — | — | 13.07% | 11.04% | 9.96% | — | — | 3.28% | — | 7.21% | — |
| Jun 30, 2009 | 18.71% | 12.97% | 5.31% | — | -10.62% | — | — | 12.31% | 9.26% | 11.80% | — | — | 2.93% | — | 5.71% | — |
| Jun 30, 2008 | 24.29% | 13.64% | 14.98% | — | -110.44% | — | — | 11.26% | 10.22% | 11.68% | — | — | 1.68% | — | 6.93% | — |
| Jun 30, 2007 | 22.26% | 11.57% | 12.67% | — | 7.65% | — | — | 8.65% | 10.35% | 12.36% | — | — | 0.07% | — | 4.99% | — |
| Jun 30, 2006 | 18.10% | 10.33% | 8.48% | — | 4.14% | — | — | 9.19% | 15.05% | 11.65% | — | — | 6.55% | — | 1.15% | — |
| Jun 30, 2005 | 17.30% | 10.50% | 24.70% | — | 1.45% | — | — | 7.50% | 14.05% | 13.95% | — | — | 2.62% | — | -0.72% | — |
Based on: 10-K (reporting date: 2026-06-30), 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)
Microsoft Corp., ROA, long-term trends, comparison to sector (software & services)
| Microsoft Corp. | Software & Services | |
|---|---|---|
| Jun 30, 2026 | 17.64% | — |
| Jun 30, 2025 | 16.45% | 12.06% |
| Jun 30, 2024 | 17.21% | 12.19% |
| Jun 30, 2023 | 17.56% | 11.12% |
| Jun 30, 2022 | 19.94% | 11.25% |
| Jun 30, 2021 | 18.36% | 12.14% |
| Jun 30, 2020 | 14.70% | 9.64% |
| Jun 30, 2019 | 13.69% | 10.81% |
| Jun 30, 2018 | 6.40% | 6.11% |
| Jun 30, 2017 | 8.80% | 7.29% |
| Jun 30, 2016 | 8.67% | 8.86% |
| Jun 30, 2015 | 6.92% | 8.53% |
| Jun 30, 2014 | 12.81% | 11.18% |
| Jun 30, 2013 | 15.35% | 13.46% |
| Jun 30, 2012 | 14.00% | 13.36% |
| Jun 30, 2011 | 21.30% | 15.34% |
| Jun 30, 2010 | 21.79% | 14.69% |
| Jun 30, 2009 | 18.71% | 13.64% |
| Jun 30, 2008 | 24.29% | 14.32% |
| Jun 30, 2007 | 22.26% | 12.84% |
| Jun 30, 2006 | 18.10% | 12.19% |
| Jun 30, 2005 | 17.30% | 11.53% |
Based on: 10-K (reporting date: 2026-06-30), 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 Industry (Information Technology)
Microsoft Corp., ROA, long-term trends, comparison to industry (information technology)
| Microsoft Corp. | Information Technology | |
|---|---|---|
| Jun 30, 2026 | 17.64% | — |
| Jun 30, 2025 | 16.45% | 15.40% |
| Jun 30, 2024 | 17.21% | 11.91% |
| Jun 30, 2023 | 17.56% | 12.44% |
| Jun 30, 2022 | 19.94% | 14.47% |
| Jun 30, 2021 | 18.36% | 14.59% |
| Jun 30, 2020 | 14.70% | 11.42% |
| Jun 30, 2019 | 13.69% | 11.75% |
| Jun 30, 2018 | 6.40% | 10.94% |
| Jun 30, 2017 | 8.80% | 9.03% |
| Jun 30, 2016 | 8.67% | 9.79% |
| Jun 30, 2015 | 6.92% | 11.53% |
| Jun 30, 2014 | 12.81% | 12.37% |
| Jun 30, 2013 | 15.35% | 13.26% |
| Jun 30, 2012 | 14.00% | 14.08% |
| Jun 30, 2011 | 21.30% | 15.12% |
| Jun 30, 2010 | 21.79% | 14.52% |
| Jun 30, 2009 | 18.71% | 10.09% |
| Jun 30, 2008 | 24.29% | 12.00% |
| Jun 30, 2007 | 22.26% | 12.05% |
| Jun 30, 2006 | 18.10% | 12.22% |
| Jun 30, 2005 | 17.30% | 12.77% |
Based on: 10-K (reporting date: 2026-06-30), 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).