Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Two-Component Disaggregation of ROE

Microsoft Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 34.64% = 17.54% × 1.97
Sep 30, 2023 34.93% = 17.29% × 2.02
Jun 30, 2023 35.09% = 17.56% × 2.00
Mar 31, 2023 35.45% = 18.16% × 1.95
Dec 31, 2022 36.83% = 18.50% × 1.99
Sep 30, 2022 40.21% = 19.40% × 2.07
Jun 30, 2022 43.68% = 19.94% × 2.19
Mar 31, 2022 44.47% = 21.03% × 2.12
Dec 31, 2021 44.49% = 20.91% × 2.13
Sep 30, 2021 44.67% = 20.24% × 2.21
Jun 30, 2021 43.15% = 18.36% × 2.35
Mar 31, 2021 41.65% = 18.13% × 2.30
Dec 31, 2020 39.40% = 16.87% × 2.34
Sep 30, 2020 38.49% = 15.78% × 2.44
Jun 30, 2020 37.43% = 14.70% × 2.55
Mar 31, 2020 40.41% = 16.21% × 2.49
Dec 31, 2019 40.25% = 15.67% × 2.57
Sep 30, 2019 38.75% = 14.73% × 2.63
Jun 30, 2019 38.35% = 13.69% × 2.80
Mar 31, 2019 36.82% = 13.27% × 2.78
Dec 31, 2018 36.41% = 12.96% × 2.81
Sep 30, 2018 21.89% = 7.30% × 3.00
Jun 30, 2018 20.03% = 6.40% × 3.13
Mar 31, 2018 = × 3.10
Dec 31, 2017 = × 3.27
Sep 30, 2017 = × 2.78

Based on: 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2024 is the decrease in financial leverage ratio.


Three-Component Disaggregation of ROE

Microsoft Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 34.64% = 36.27% × 0.48 × 1.97
Sep 30, 2023 34.93% = 35.31% × 0.49 × 2.02
Jun 30, 2023 35.09% = 34.15% × 0.51 × 2.00
Mar 31, 2023 35.45% = 33.25% × 0.55 × 1.95
Dec 31, 2022 36.83% = 33.05% × 0.56 × 1.99
Sep 30, 2022 40.21% = 34.37% × 0.56 × 2.07
Jun 30, 2022 43.68% = 36.69% × 0.54 × 2.19
Mar 31, 2022 44.47% = 37.63% × 0.56 × 2.12
Dec 31, 2021 44.49% = 38.50% × 0.54 × 2.13
Sep 30, 2021 44.67% = 38.51% × 0.53 × 2.21
Jun 30, 2021 43.15% = 36.45% × 0.50 × 2.35
Mar 31, 2021 41.65% = 35.02% × 0.52 × 2.30
Dec 31, 2020 39.40% = 33.47% × 0.50 × 2.34
Sep 30, 2020 38.49% = 32.29% × 0.49 × 2.44
Jun 30, 2020 37.43% = 30.96% × 0.47 × 2.55
Mar 31, 2020 40.41% = 33.36% × 0.49 × 2.49
Dec 31, 2019 40.25% = 33.02% × 0.47 × 2.57
Sep 30, 2019 38.75% = 31.66% × 0.47 × 2.63
Jun 30, 2019 38.35% = 31.18% × 0.44 × 2.80
Mar 31, 2019 36.82% = 28.58% × 0.46 × 2.78
Dec 31, 2018 36.41% = 28.31% × 0.46 × 2.81
Sep 30, 2018 21.89% = 16.38% × 0.45 × 3.00
Jun 30, 2018 20.03% = 15.02% × 0.43 × 3.13
Mar 31, 2018 = × × 3.10
Dec 31, 2017 = × × 3.27
Sep 30, 2017 = × × 2.78

Based on: 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2024 is the decrease in financial leverage ratio.


Two-Component Disaggregation of ROA

Microsoft Corp., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 17.54% = 36.27% × 0.48
Sep 30, 2023 17.29% = 35.31% × 0.49
Jun 30, 2023 17.56% = 34.15% × 0.51
Mar 31, 2023 18.16% = 33.25% × 0.55
Dec 31, 2022 18.50% = 33.05% × 0.56
Sep 30, 2022 19.40% = 34.37% × 0.56
Jun 30, 2022 19.94% = 36.69% × 0.54
Mar 31, 2022 21.03% = 37.63% × 0.56
Dec 31, 2021 20.91% = 38.50% × 0.54
Sep 30, 2021 20.24% = 38.51% × 0.53
Jun 30, 2021 18.36% = 36.45% × 0.50
Mar 31, 2021 18.13% = 35.02% × 0.52
Dec 31, 2020 16.87% = 33.47% × 0.50
Sep 30, 2020 15.78% = 32.29% × 0.49
Jun 30, 2020 14.70% = 30.96% × 0.47
Mar 31, 2020 16.21% = 33.36% × 0.49
Dec 31, 2019 15.67% = 33.02% × 0.47
Sep 30, 2019 14.73% = 31.66% × 0.47
Jun 30, 2019 13.69% = 31.18% × 0.44
Mar 31, 2019 13.27% = 28.58% × 0.46
Dec 31, 2018 12.96% = 28.31% × 0.46
Sep 30, 2018 7.30% = 16.38% × 0.45
Jun 30, 2018 6.40% = 15.02% × 0.43
Mar 31, 2018 = ×
Dec 31, 2017 = ×
Sep 30, 2017 = ×

Based on: 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).

The primary reason for the increase in return on assets ratio (ROA) over Q2 2024 is the increase in profitability measured by net profit margin ratio.