Microsoft Corp
BMV:MSFT
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ROIC
Return on Invested Capital (ROIC) measures how efficiently a company generates profit from the capital it invests in its business. It shows how well the company turns invested funds into returns for investors.
Return on Invested Capital (ROIC) measures how efficiently a company generates profit from the capital it invests in its business. It shows how well the company turns invested funds into returns for investors.
Peer Comparison
| Country | Company | Market Cap | ROIC | ||
|---|---|---|---|---|---|
| US |
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Microsoft Corp
NASDAQ:MSFT
|
3.2T USD |
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| US |
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Alphabet Inc
NASDAQ:GOOGL
|
4.2T USD |
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| US |
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Apple Inc
NASDAQ:AAPL
|
4T USD |
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| US |
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Amazon.com Inc
NASDAQ:AMZN
|
2.8T USD |
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| US |
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Meta Platforms Inc
NASDAQ:META
|
1.7T USD |
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| US |
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Oracle Corp
NYSE:ORCL
|
498.2B USD |
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| US |
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Cisco Systems Inc
NASDAQ:CSCO
|
351.7B USD |
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| US |
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International Business Machines Corp
NYSE:IBM
|
217.6B USD |
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| DE |
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SAP SE
XETRA:SAP
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172B EUR |
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| US |
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Salesforce Inc
NYSE:CRM
|
166.9B USD |
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| JP |
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Sony Group Corp
TSE:6758
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19.1T JPY |
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Market Distribution
| Min | -565 742.9% |
| 30th Percentile | 0% |
| Median | 4.7% |
| 70th Percentile | 9.4% |
| Max | 327 214.8% |
Other Profitability Ratios
Microsoft Corp
Glance View
In the dynamic world of technology, Microsoft Corp. has consistently positioned itself at the forefront of innovation and enterprise solutions since its founding in 1975 by Bill Gates and Paul Allen. Evolving from its initial foray into personal computing software, Microsoft engineered a transformation in the tech ecosystem with its Windows operating system. Today, it is a behemoth in various facets of the industry, from cloud computing with Azure to productivity software suites like Microsoft Office. Unlike the mythic tales of overnight success, Microsoft's ascent reflects strategic adaptability and foresight, crafting a narrative of calculated pivots and robust diversification. The company’s business model intricately weaves together a mélange of software products, services, and hardware. Its revenue streams are diversified across licensing fees, subscriptions, cloud services, and hardware sales. Azure, Microsoft's cloud platform, stands as a stalwart in the cloud computing arena, offering a multitude of services to enterprises, outpacing competitors through aggressive innovation and enterprise engagement. Meanwhile, the Office suite's transition to a subscription-based model underlines a shift toward a recurring revenue stream, which has fortified its financial stability. Microsoft's success isn’t merely rooted in software; its ventures into gaming with Xbox and acquisitions like LinkedIn signify a robust portfolio, leveraging a vast ecosystem to sustain growth and relevance across an array of markets.
See Also
ROIC is calculated by dividing the NOPAT by the Avg Invested Capital.
The current ROIC for Microsoft Corp is 23.7%, which is below its 3-year median of 25.8%.
Over the last 3 years, Microsoft Corp’s ROIC has decreased from 30.5% to 23.7%. During this period, it reached a low of 23.2% on Jun 30, 2025 and a high of 30.5% on Dec 31, 2022.