Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Microsoft Corp., long-term (investment) activity ratios
Based on: 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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Microsoft Corp. net fixed asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Microsoft Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Microsoft Corp. total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Microsoft Corp. equity turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Net Fixed Asset Turnover
Microsoft Corp., net fixed asset turnover calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenue | 211,915) | 198,270) | 168,088) | 143,015) | 125,843) | 110,360) | |
| Property and equipment, net of accumulated depreciation | 95,641) | 74,398) | 59,715) | 44,151) | 36,477) | 29,460) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 2.22 | 2.66 | 2.81 | 3.24 | 3.45 | 3.75 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Accenture PLC | 41.90 | 37.12 | 30.83 | 28.68 | 31.06 | 32.91 | |
| Adobe Inc. | 9.56 | 9.23 | 9.44 | 8.48 | 8.64 | 8.40 | |
| International Business Machines Corp. | 11.25 | 11.35 | 10.07 | 7.33 | 7.71 | — | |
| Intuit Inc. | 14.83 | 14.33 | 12.35 | 10.46 | 8.70 | 7.34 | |
| Oracle Corp. | 2.93 | 4.37 | 5.74 | 6.26 | 6.32 | 6.75 | |
| Palo Alto Networks Inc. | 19.44 | 15.38 | 13.37 | 9.79 | 9.80 | 8.32 | |
| Salesforce Inc. | 8.47 | 9.41 | 8.64 | 7.20 | 6.48 | — | |
| ServiceNow Inc. | 6.61 | 6.88 | 7.70 | 6.85 | 7.39 | — | |
| Synopsys Inc. | 10.48 | 10.51 | 8.90 | 7.62 | 7.82 | 10.09 | |
| Net Fixed Asset Turnover, Sector | |||||||
| Software & Services | 3.69 | 4.44 | 4.69 | 5.13 | 5.50 | — | |
| Net Fixed Asset Turnover, Industry | |||||||
| Information Technology | 3.51 | 4.14 | 4.44 | 4.23 | 4.27 | — | |
Based on: 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).
1 2023 Calculation
Net fixed asset turnover = Revenue ÷ Property and equipment, net of accumulated depreciation
= 211,915 ÷ 95,641 = 2.22
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Microsoft Corp. net fixed asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Microsoft Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenue | 211,915) | 198,270) | 168,088) | 143,015) | 125,843) | 110,360) | |
| Property and equipment, net of accumulated depreciation | 95,641) | 74,398) | 59,715) | 44,151) | 36,477) | 29,460) | |
| Operating lease right-of-use assets | 14,346) | 13,148) | 11,088) | 8,753) | 7,379) | 6,686) | |
| Property and equipment, net of accumulated depreciation (including operating lease, right-of-use asset) | 109,987) | 87,546) | 70,803) | 52,904) | 43,856) | 36,146) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 1.93 | 2.26 | 2.37 | 2.70 | 2.87 | 3.05 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Accenture PLC | 15.38 | 13.17 | 10.48 | 9.37 | 31.06 | 32.91 | |
| Adobe Inc. | 8.13 | 7.61 | 7.46 | 6.42 | 8.64 | 8.40 | |
| International Business Machines Corp. | 7.09 | 7.37 | 6.43 | 5.00 | 5.14 | — | |
| Intuit Inc. | 9.99 | 8.86 | 8.30 | 8.00 | 8.70 | 7.34 | |
| Oracle Corp. | 2.31 | 3.21 | 4.20 | 4.74 | 6.32 | 6.75 | |
| Palo Alto Networks Inc. | 11.16 | 9.17 | 7.32 | 5.62 | 9.80 | 8.32 | |
| Salesforce Inc. | 4.76 | 4.65 | 3.75 | 3.16 | 6.48 | — | |
| ServiceNow Inc. | 4.33 | 4.18 | 4.34 | 4.06 | 3.98 | — | |
| Synopsys Inc. | 5.19 | 4.87 | 4.35 | 3.88 | 7.82 | 10.09 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Software & Services | 2.99 | 3.46 | 3.56 | 3.81 | 4.52 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Information Technology | 3.08 | 3.59 | 3.79 | 3.60 | 3.99 | — | |
Based on: 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).
1 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property and equipment, net of accumulated depreciation (including operating lease, right-of-use asset)
= 211,915 ÷ 109,987 = 1.93
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Microsoft Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Total Asset Turnover
Microsoft Corp., total asset turnover calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenue | 211,915) | 198,270) | 168,088) | 143,015) | 125,843) | 110,360) | |
| Total assets | 411,976) | 364,840) | 333,779) | 301,311) | 286,556) | 258,848) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 0.51 | 0.54 | 0.50 | 0.47 | 0.44 | 0.43 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Accenture PLC | 1.25 | 1.30 | 1.17 | 1.20 | 1.45 | 1.70 | |
| Adobe Inc. | 0.65 | 0.65 | 0.58 | 0.53 | 0.54 | 0.48 | |
| International Business Machines Corp. | 0.46 | 0.48 | 0.43 | 0.47 | 0.51 | — | |
| Intuit Inc. | 0.52 | 0.46 | 0.62 | 0.70 | 1.08 | 1.15 | |
| Oracle Corp. | 0.37 | 0.39 | 0.31 | 0.34 | 0.36 | 0.29 | |
| Palo Alto Networks Inc. | 0.48 | 0.45 | 0.42 | 0.38 | 0.44 | 0.39 | |
| Salesforce Inc. | 0.32 | 0.28 | 0.32 | 0.31 | 0.43 | — | |
| ServiceNow Inc. | 0.52 | 0.54 | 0.55 | 0.52 | 0.57 | — | |
| Synopsys Inc. | 0.57 | 0.54 | 0.48 | 0.46 | 0.52 | 0.51 | |
| Total Asset Turnover, Sector | |||||||
| Software & Services | 0.51 | 0.52 | 0.48 | 0.48 | 0.50 | — | |
| Total Asset Turnover, Industry | |||||||
| Information Technology | 0.59 | 0.63 | 0.61 | 0.57 | 0.58 | — | |
Based on: 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).
1 2023 Calculation
Total asset turnover = Revenue ÷ Total assets
= 211,915 ÷ 411,976 = 0.51
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Microsoft Corp. total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Equity Turnover
Microsoft Corp., equity turnover calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenue | 211,915) | 198,270) | 168,088) | 143,015) | 125,843) | 110,360) | |
| Stockholders’ equity | 206,223) | 166,542) | 141,988) | 118,304) | 102,330) | 82,718) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 1.03 | 1.19 | 1.18 | 1.21 | 1.23 | 1.33 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Accenture PLC | 2.50 | 2.79 | 2.59 | 2.61 | 3.00 | 4.01 | |
| Adobe Inc. | 1.18 | 1.25 | 1.07 | 0.97 | 1.06 | 0.96 | |
| International Business Machines Corp. | 2.75 | 2.76 | 3.03 | 3.57 | 3.70 | — | |
| Intuit Inc. | 0.83 | 0.77 | 0.98 | 1.50 | 1.81 | 2.53 | |
| Oracle Corp. | 46.56 | — | 7.73 | 3.24 | 1.81 | 0.87 | |
| Palo Alto Networks Inc. | 3.94 | 26.20 | 6.71 | 3.09 | 1.83 | 2.35 | |
| Salesforce Inc. | 0.54 | 0.46 | 0.51 | 0.50 | 0.85 | — | |
| ServiceNow Inc. | 1.18 | 1.44 | 1.60 | 1.59 | 1.63 | — | |
| Synopsys Inc. | 0.95 | 0.92 | 0.79 | 0.75 | 0.82 | 0.90 | |
| Equity Turnover, Sector | |||||||
| Software & Services | 1.31 | 1.44 | 1.44 | 1.52 | 1.66 | — | |
| Equity Turnover, Industry | |||||||
| Information Technology | 1.44 | 1.61 | 1.67 | 1.65 | 1.65 | — | |
Based on: 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).
1 2023 Calculation
Equity turnover = Revenue ÷ Stockholders’ equity
= 211,915 ÷ 206,223 = 1.03
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Microsoft Corp. equity turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |