Microsoft Corp
NASDAQ:MSFT
ROE
Return on Equity (ROE) measures how effectively a company generates profit from shareholders` equity. It shows how much net income is earned for each dollar invested by shareholders.
Return on Equity (ROE) measures how effectively a company generates profit from shareholders` equity. It shows how much net income is earned for each dollar invested by shareholders.
Peer Comparison
| Country | Company | Market Cap | ROE | ||
|---|---|---|---|---|---|
| US |
|
Microsoft Corp
NASDAQ:MSFT
|
3T USD |
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|
| US |
|
Apple Inc
NASDAQ:AAPL
|
4.1T USD |
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|
|
| US |
|
Alphabet Inc
NASDAQ:GOOGL
|
3.9T USD |
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|
|
| US |
|
Amazon.com Inc
NASDAQ:AMZN
|
2.2T USD |
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|
|
| US |
|
Meta Platforms Inc
NASDAQ:META
|
1.7T USD |
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|
|
| US |
|
Oracle Corp
NYSE:ORCL
|
405.7B USD |
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|
| US |
|
Cisco Systems Inc
NASDAQ:CSCO
|
333B USD |
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|
|
| US |
|
International Business Machines Corp
NYSE:IBM
|
279.5B USD |
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|
| DE |
|
SAP SE
XETRA:SAP
|
198.8B EUR |
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|
| US |
|
Salesforce Inc
NYSE:CRM
|
178.7B USD |
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|
| JP |
|
Sony Group Corp
TSE:6758
|
20.9T JPY |
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Market Distribution
| Min | -155 749.7% |
| 30th Percentile | -2% |
| Median | 8.2% |
| 70th Percentile | 15.9% |
| Max | 143 206.7% |
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
ROE is calculated by dividing the Net Income by the Avg Total Equity.
The current ROE for Microsoft Corp is 34.4%, which is below its 3-year median of 36.2%.
Over the last 3 years, Microsoft Corp’s ROE has decreased from 39.3% to 34.4%. During this period, it reached a low of 32.2% on Sep 30, 2025 and a high of 39.3% on Dec 31, 2022.