Stock Analysis on Net
Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

$24.99

Total Asset Turnover
since 2005

Microsoft Excel

Calculation

Microsoft Corp., total asset turnover, long-term trends, calculation

Microsoft Excel

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


Analysis of financial performance between 2005 and 2026 reveals a period of substantial expansion in both revenue and total assets. While revenue grew from US$ 39,788 million in 2005 to a projected US$ 331,839 million by 2026, total assets increased more aggressively, rising from US$ 70,815 million to US$ 758,376 million over the same duration.

Total Asset Turnover Volatility
The total asset turnover ratio experienced a distinct peak between 2005 and 2008, rising from 0.56 to a high of 0.83. This period indicates a phase of high operational efficiency where revenue growth outpaced asset accumulation.
Period of Efficiency Decline
Following 2008, a sustained downward trend in asset turnover is evident, reaching a minimum of 0.37 in 2017. This decline coincides with a significant surge in total assets, suggesting that capital investments and asset acquisitions grew at a rate far exceeding the corresponding increase in annual revenue.
Recent Stabilization and Projections
From 2018 to 2022, the ratio showed a moderate recovery, peaking at 0.54 in 2022. However, projections through 2026 indicate a slight contraction, with the ratio expected to settle at 0.44. This suggests a continued trend of asset-heavy scaling to support revenue growth.
Asset-Revenue Correlation
The long-term trajectory shows that while revenue has scaled by over eight times, the asset base has expanded by more than ten times. This resulting compression in the asset turnover ratio reflects a fundamental shift in the business model toward more asset-intensive operations compared to the mid-2000s.

Comparison to Competitors

Microsoft Corp., total asset turnover, long-term trends, comparison to competitors

Microsoft Excel

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)


Comparison to Industry (Information Technology)