Microsoft Corporation MSFT
- Market cap
- $3.68T
- P/E
- 28.7×
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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
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)
More on MSFT
- Revenue
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- Free cash flow
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- Net margin
- Free cash flow margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
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- Return on equity
- Return on assets
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- Current ratio
- Total debt
- Shares outstanding
- Book value per share
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- The full statement