Analysis of Geographic Areas
Microsoft Corp. operates in 2 regions: United States and Other countries.
Area Asset Turnover
Microsoft Corp., asset turnover by geographic area
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|
| United States | 0.63 | 0.67 | 0.93 | 0.94 | 1.10 | 1.20 |
| Other countries | 0.97 | 1.04 | 1.44 | 1.64 | 1.61 | 1.64 |
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).
The analysis of the annual geographic area asset turnover ratios reveals distinct trends across the two regions over the six-year period.
- United States
- The asset turnover ratio in the United States exhibited a continuous decline from 1.2 in 2020 to 0.63 in 2025. The decrease was gradual, with a slight drop from 1.2 to 1.1 between 2020 and 2021, followed by a more pronounced reduction in subsequent years. Notably, the ratio dipped below the value of 1 starting in 2022 and continued to diminish steadily thereafter, reaching a low point of 0.63 in 2025. This trend indicates decreasing efficiency in the utilization of assets in the U.S. market over the period analyzed.
- Other countries
- In contrast, asset turnover ratios for other countries began at a higher level of 1.64 in 2020 and showed relative stability in the early years, maintaining values close to 1.61-1.64 up to 2022. However, from 2023 onward, the ratio started to decline, dropping more substantially to 1.44 in 2023 and continuing downward to 0.97 by 2025. Despite this decline, the turnover ratio in other countries remained consistently above that of the United States throughout the timeframe. This suggests that although asset efficiency in international markets experienced deterioration in the later years, it remained comparatively stronger than in the domestic U.S. market.
Overall, the data shows a clear downward trend in asset turnover ratios across both geographic segments, indicating reduced asset efficiency on a global scale. The decline was more severe and prolonged in the United States, reflecting potentially greater challenges or changes in asset management domestically. The relatively higher ratio in other countries up to 2022 and the slower decline thereafter could imply different market dynamics, competitive environments, or operational approaches affecting asset utilization efficiency outside the U.S.
Area Asset Turnover: United States
Microsoft Corp.; United States; area asset turnover calculation
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 144,546) | 124,704) | 106,744) | 100,218) | 83,953) | 73,160) |
| Long-lived assets | 230,069) | 186,106) | 114,380) | 106,430) | 76,153) | 60,789) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 0.63 | 0.67 | 0.93 | 0.94 | 1.10 | 1.20 |
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).
1 2025 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 144,546 ÷ 230,069 = 0.63
The financial data for the United States geographic area reveals several notable trends over the six-year period ending June 30, 2025.
- Revenue
- Revenue consistently increased each year, starting from US$73,160 million in 2020 and reaching US$144,546 million in 2025. The growth pattern demonstrates a robust upward trajectory, with the most substantial increments occurring between 2023 and 2025. This indicates strong sales performance and market expansion in the U.S. segment.
- Long-lived assets
- The value of long-lived assets showed a significant upward trend. Beginning at US$60,789 million in 2020, these assets grew slowly initially but accelerated sharply after 2022, peaking at US$230,069 million in 2025. The rapid increase in assets suggests major investments in property, plant, equipment, or other long-term assets, possibly reflecting strategic capacity expansion or technological upgrades.
- Area asset turnover
- The area asset turnover ratio, which measures the efficiency of asset utilization to generate revenue, declined steadily from 1.2 in 2020 to 0.63 in 2025. Despite rising revenues, the decreasing ratio indicates that the asset base expanded at a faster rate than revenue growth. This implies diminishing efficiency in asset use over the period or a potential lag in the revenue generation from recent asset investments.
In summary, while revenue growth in the United States area showed consistent strength, the substantial increase in long-lived assets coupled with a declining asset turnover ratio points to expanding capacity or investment that has not yet translated into proportional revenue gains. This trend warrants further monitoring to assess whether the investments will ultimately enhance operational efficiency and support sustained growth.
Area Asset Turnover: Other countries
Microsoft Corp.; Other countries; area asset turnover calculation
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 137,178) | 120,418) | 105,171) | 98,052) | 84,135) | 69,855) |
| Long-lived assets | 141,833) | 115,263) | 72,859) | 59,938) | 52,161) | 42,504) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 0.97 | 1.04 | 1.44 | 1.64 | 1.61 | 1.64 |
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).
1 2025 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 137,178 ÷ 141,833 = 0.97
The analysis of the financial data for the "Other countries" geographic area reveals several significant trends over the six-year period.
- Revenue
- The revenue demonstrates a consistent upward trajectory year over year. Starting at $69,855 million in 2020, it rises to $137,178 million by 2025. This indicates robust growth, with revenue nearly doubling across the period, suggesting strong market expansion and increasing sales effectiveness in the region.
- Long-lived assets
- There is a noteworthy increase in long-lived assets, which grow from $42,504 million in 2020 to $141,833 million in 2025. The acceleration in asset value, especially between 2022 and 2025, highlights substantial capital investments or acquisitions, reflecting an emphasis on expanding the asset base to support future operations and growth.
- Area asset turnover ratio
- The ratio reveals a declining trend, moving from 1.64 in 2020 down to 0.97 in 2025. This decrease indicates that the efficiency in generating revenue from the asset base is deteriorating over time. While revenue is increasing, it is growing at a slower rate relative to the growth in long-lived assets, implying potential underutilization or overinvestment in assets within this geographic area.
Overall, while revenue and asset investment are rising sharply, the declining asset turnover ratio suggests that the company may need to focus on improving asset utilization to maintain operational efficiency in the "Other countries" segment.
Revenue
Microsoft Corp., revenue by geographic area
US$ in millions
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|
| United States | 144,546) | 124,704) | 106,744) | 100,218) | 83,953) | 73,160) |
| Other countries | 137,178) | 120,418) | 105,171) | 98,052) | 84,135) | 69,855) |
| Total | 281,724) | 245,122) | 211,915) | 198,270) | 168,088) | 143,015) |
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).
- Revenue Trends by Geographic Area
- Over the six-year period, the revenue generated from both the United States and other countries demonstrates a clear upward trajectory, indicating consistent growth in global sales.
- United States Revenue
- The revenue from the United States increased steadily each year, starting from approximately 73.16 billion US dollars in 2020 and reaching around 144.55 billion US dollars by 2025. This represents nearly a doubling of revenue over the observed period. The annual growth rate appears to accelerate slightly in the latter years, particularly from 2023 to 2025.
- Revenue from Other Countries
- Revenue originating from other countries also shows a continuous rise, beginning at about 69.86 billion US dollars in 2020 and increasing to approximately 137.18 billion US dollars in 2025. The incremental annual increases are notable and closely mirror the growth pattern observed in the United States market, suggesting broad international expansion or strengthening market positions globally.
- Total Revenue
- The total revenue, as the sum of domestic and international earnings, rose from roughly 143.02 billion US dollars in 2020 to about 281.72 billion US dollars in 2025. This near doubling confirms that both geographic segments contribute significantly and proportionally to the overall revenue growth. The consistency in growth between the two regions points towards balanced geographic risk and diversified income streams.
- Interpretation and Insights
- The parallel growth patterns in domestic and international revenues indicate a well-diversified and expanding market presence. The increasing revenue figures suggest effective market penetration and possibly the successful launch of products or services appealing to a global customer base. The data reveals no apparent dependency on one particular region, which enhances financial stability and reduces geographic market risk.
Long-lived assets
Microsoft Corp., long-lived assets by geographic area
US$ in millions
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|
| United States | 230,069) | 186,106) | 114,380) | 106,430) | 76,153) | 60,789) |
| Other countries | 141,833) | 115,263) | 72,859) | 59,938) | 52,161) | 42,504) |
| Total | 371,902) | 301,369) | 187,239) | 166,368) | 128,314) | 103,293) |
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).
- United States Long-Lived Assets
- The value of long-lived assets in the United States demonstrated a consistent upward trend throughout the observed periods. Starting at US$60,789 million in mid-2020, there was steady growth over the following years, reaching US$114,380 million by mid-2023. The increase became significantly more pronounced in the subsequent years, with assets rising to US$186,106 million in mid-2024 and further to US$230,069 million by mid-2025. This reflects a substantial acceleration in asset accumulation within the United States market, particularly in the last two years of the data series.
- Other Countries Long-Lived Assets
- Long-lived assets in other countries also followed an increasing trajectory but at a somewhat slower pace compared to the United States. The assets grew from US$42,504 million in mid-2020 to US$72,859 million by mid-2023. Post-2023, there was a sharper rise, with assets reaching US$115,263 million in mid-2024 and subsequently US$141,833 million in mid-2025. Although growth accelerated in the later years, the asset base outside the United States consistently remained lower in magnitude relative to the U.S. figures.
- Total Long-Lived Assets
- The total long-lived assets, aggregating both U.S. and other country figures, exhibited a robust and accelerating growth pattern. The total increased from US$103,293 million in mid-2020 to US$187,239 million in mid-2023, representing steady growth. Subsequently, the total assets surged to US$301,369 million in mid-2024 and US$371,902 million by mid-2025. The data indicates a notable expansion and scaling of asset investment globally, with the United States contributing a dominant share of the total growth and other countries also experiencing increased asset accumulation, especially in the most recent years.
- Summary
- Overall, the long-lived assets show a sustained upward trend across all geographic areas, with the United States consistently exhibiting a larger asset base and faster growth rate compared to other countries. The acceleration in asset growth after 2023 suggests strategic investment expansion or acquisition activity contributing to the substantial increase in capital assets. The combined total reflects strong global asset investment, with particularly rapid increases in the last two recorded years.