Analysis of Reportable Segments
Microsoft Corp. operates in 3 segments: Productivity and Business Processes; Intelligent Cloud; and More Personal Computing.
Segment Profit Margin
Microsoft Corp., profit margin by reportable segment
| Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | |
|---|---|---|---|---|---|---|
| Productivity and Business Processes | 46.85% | 45.17% | 40.36% | 39.40% | 36.04% | 39.13% |
| Intelligent Cloud | 43.48% | 43.49% | 37.89% | 35.71% | 35.77% | 33.30% |
| More Personal Computing | 35.16% | 35.94% | 32.98% | 28.05% | 25.10% | 21.38% |
Based on: 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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Productivity and Business Processes | Productivity and Business Processes segment profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Intelligent Cloud | Intelligent Cloud segment profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. | |
| More Personal Computing | More Personal Computing segment profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Segment Profit Margin: Productivity and Business Processes
Microsoft Corp.; Productivity and Business Processes; segment profit margin calculation
| Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 29,687) | 24,351) | 18,724) | 16,219) | 12,924) | 11,913) |
| Revenue | 63,364) | 53,915) | 46,398) | 41,160) | 35,865) | 30,444) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 46.85% | 45.17% | 40.36% | 39.40% | 36.04% | 39.13% |
Based on: 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).
1 2022 Calculation
Segment profit margin = 100 × Operating income ÷ Revenue
= 100 × 29,687 ÷ 63,364 = 46.85%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Productivity and Business Processes | Productivity and Business Processes segment profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Segment Profit Margin: Intelligent Cloud
Microsoft Corp.; Intelligent Cloud; segment profit margin calculation
| Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 32,721) | 26,126) | 18,324) | 13,920) | 11,524) | 9,138) |
| Revenue | 75,251) | 60,080) | 48,366) | 38,985) | 32,219) | 27,440) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 43.48% | 43.49% | 37.89% | 35.71% | 35.77% | 33.30% |
Based on: 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).
1 2022 Calculation
Segment profit margin = 100 × Operating income ÷ Revenue
= 100 × 32,721 ÷ 75,251 = 43.48%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Intelligent Cloud | Intelligent Cloud segment profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Segment Profit Margin: More Personal Computing
Microsoft Corp.; More Personal Computing; segment profit margin calculation
| Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 20,975) | 19,439) | 15,911) | 12,820) | 10,610) | 8,288) |
| Revenue | 59,655) | 54,093) | 48,251) | 45,698) | 42,276) | 38,773) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 35.16% | 35.94% | 32.98% | 28.05% | 25.10% | 21.38% |
Based on: 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).
1 2022 Calculation
Segment profit margin = 100 × Operating income ÷ Revenue
= 100 × 20,975 ÷ 59,655 = 35.16%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | More Personal Computing | More Personal Computing segment profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Revenue
Microsoft Corp., revenue by reportable segment
US$ in millions
| Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | |
|---|---|---|---|---|---|---|
| Productivity and Business Processes | 63,364) | 53,915) | 46,398) | 41,160) | 35,865) | 30,444) |
| Intelligent Cloud | 75,251) | 60,080) | 48,366) | 38,985) | 32,219) | 27,440) |
| More Personal Computing | 59,655) | 54,093) | 48,251) | 45,698) | 42,276) | 38,773) |
| Corporate and Other | —) | —) | —) | —) | —) | (6,707) |
| Total | 198,270) | 168,088) | 143,015) | 125,843) | 110,360) | 89,950) |
Based on: 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).
Operating income
Microsoft Corp., operating income by reportable segment
US$ in millions
| Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | |
|---|---|---|---|---|---|---|
| Productivity and Business Processes | 29,687) | 24,351) | 18,724) | 16,219) | 12,924) | 11,913) |
| Intelligent Cloud | 32,721) | 26,126) | 18,324) | 13,920) | 11,524) | 9,138) |
| More Personal Computing | 20,975) | 19,439) | 15,911) | 12,820) | 10,610) | 8,288) |
| Corporate and Other | —) | —) | —) | —) | —) | (7,013) |
| Total | 83,383) | 69,916) | 52,959) | 42,959) | 35,058) | 22,326) |
Based on: 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).