Microsoft Corp
NASDAQ:MSFT
ROCE
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.
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.
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
| Min | -1 112 400% |
| 30th Percentile | -2.3% |
| Median | 5.3% |
| 70th Percentile | 11.8% |
| Max | 334 937.1% |
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
ROCE is calculated by dividing the EBIT by the Avg Capital Employed.
The current ROCE for Microsoft Corp is 29.7%, which is below its 3-year median of 30.8%.
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.