Microsoft Corporation MSFT

516.17 18.24 3.66% as of 25 Sep
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P/E
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Microsoft Corporation (MSFT) Return on invested capital

Microsoft Corporation's return on invested capital over the twelve months to 30 June 2026 was 23.9%. Over the past ten years it has ranged from 23.9% (fiscal 2026) to 133.4% (fiscal 2016) — the current reading is the lowest in ten years. That is above the Software Infrastructure industry median of 0.00% and above the Technology sector median of 0.00%.

Return on invested capital, annual

Annual

Period Return on invested capital Change (points)
FY2026 23.9% (3.59)
FY2025 27.5% (0.47)
FY2024 28.0% (10.94)
FY2023 38.9% (7.80)
FY2022 46.7% (15.89)
FY2021 62.6% (10.78)
FY2020 73.4% 7.39
FY2019 66.0% (20.99)
FY2018 87.0% 42.65
FY2017 44.3% (89.07)

Against its own ten years

Low 23.9% High 133.4%
Ten-year median 53.5%
Current reading's percentile 8

Return on invested capital against peers

Company Return on invested capital
PLTR Palantir Technologies Inc. compare 346.1%
MSFT Microsoft Corporation 23.9%
ORCL Oracle Corporation compare 9.75%
PANW Palo Alto Networks, Inc. compare 1.66%
SNPS Synopsys, Inc. compare 1.33%
NET Cloudflare, Inc. compare 0.00%
FTNT Fortinet, Inc. compare 0.00%
NBIS Nebius Group N.V. compare −3.94%
CRWD CrowdStrike compare −9.53%
Software Infrastructure industry median 0.00%
Technology sector median 0.00%
Market median 0.00%

What Return on invested capital is

Return on Invested Capital shows how much after-tax operating profit a company earns on the money its lenders and shareholders have put in.

TTM: (Operating Income × 0.625) ÷ (Shareholders Equity (Total) (latest quarter) + Long Term Debt (Total) (latest quarter) + Current Part of Debt (latest quarter) − Cash & Short Term Investments (latest quarter)); Annual: (Operating Income × 0.625) ÷ (Shareholders Equity (Total) + Long Term Debt (Total) + Current Part of Debt − Cash & Short Term Investments)

The full definition of Return on invested capital →

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