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Microsoft Corp
NASDAQ:MSFT

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Microsoft Corp
NASDAQ:MSFT
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Price: 397.45 USD -0.25% Market Closed
Market Cap: $3T

ROCE

29.7%
Current
Declining
by 1.1%
vs 3-y average of 30.8%

Return on Capital Employed (ROCE) measures how efficiently a company uses its capital to generate profit. It shows how much net income is earned for each dollar of capital employed.

ROCE
29.7%
=
EBIT
$142.6B
/
Avg Capital Employed
$480.2B

Return on Capital Employed (ROCE) measures how efficiently a company uses its capital to generate profit. It shows how much net income is earned for each dollar of capital employed.

ROCE
29.7%
=
EBIT
$142.6B
/
Avg Capital Employed
$480.2B

Peer Comparison

Country Company Market Cap ROCE
US
Microsoft Corp
NASDAQ:MSFT
3T USD
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US
Apple Inc
NASDAQ:AAPL
3.9T USD
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US
Alphabet Inc
NASDAQ:GOOGL
3.8T USD
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US
Amazon.com Inc
NASDAQ:AMZN
2.3T USD
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US
Meta Platforms Inc
NASDAQ:META
1.7T USD
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US
Oracle Corp
NYSE:ORCL
426.2B USD
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US
Cisco Systems Inc
NASDAQ:CSCO
312B USD
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US
International Business Machines Corp
NYSE:IBM
240.9B USD
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DE
SAP SE
XETRA:SAP
202.4B EUR
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US
Salesforce Inc
NYSE:CRM
174.3B USD
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JP
Sony Group Corp
TSE:6758
19.9T JPY
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Market Distribution

Higher than 89% of companies in the United States of America
Percentile
89th
Based on 15 630 companies
89th percentile
29.7%
Low
-1 112 400% — -2.3%
Typical Range
-2.3% — 11.8%
High
11.8% — 334 937.1%
Distribution Statistics
the United States of America
Min -1 112 400%
30th Percentile -2.3%
Median 5.3%
70th Percentile 11.8%
Max 334 937.1%

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.

MSFT Intrinsic Value
385.62 USD
Overvaluation 3%
Intrinsic Value
Price
What is Return on Capital Employed?
Return on Capital Employed (ROCE) measures how efficiently a company uses its capital to generate profit. It shows how much net income is earned for each dollar of capital employed.
How is ROCE calculated?

ROCE is calculated by dividing the EBIT by the Avg Capital Employed.

ROCE
29.7%
=
EBIT
$142.6B
/
Avg Capital Employed
$480.2B
What is Microsoft Corp's current ROCE?

The current ROCE for Microsoft Corp is 29.7%, which is below its 3-year median of 30.8%.

How has ROCE changed over time?

Over the last 3 years, Microsoft Corp’s ROCE has decreased from 30.8% to 29.7%. During this period, it reached a low of 29.7% on Jan 1, 2026 and a high of 32% on Sep 30, 2023.

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