What are Microsoft's profit margins?

Microsoft (MSFT) runs a 68.3% gross margin and a 46.8% operating margin, with a 39.3% net margin.

Where do Microsoft's ratios come from?

Every ratio is computed from Microsoft's SEC filings — trailing-twelve-month flows over period-end balances. Valuation multiples combine those fundamentals with market data, recomputed each period. Switch between quarterly, annual, and TTM, or open any ratio for its full history and peer comparisons.

Microsoft MSFT Ratios & Valuation

Income Statement Balance Sheet Cash Flow Ratios Segments

Quarterly Annual TTM

YoY

Simplified Detailed

	FY'25	FY'24	FY'23	FY'22
Profitability
Gross margin	276.7%-2.2pp	278.8%+5.1pp	273.8%-1.0pp	274.8%+0.9pp
Operating margin	180.3%+3.8pp	176.5%+11.6pp	164.9%-4.4pp	169.3%+10.1pp
Net margin	143%-1.0pp	144%+9.2pp	134.8%-16.5pp	151.3%+14.1pp
EBITDA margin	222.6%+14.1pp	208.5%+16.4pp	192%-5.7pp	197.7%+7.9pp
Free cash flow margin	106.4%-12.2pp	118.6%+2.5pp	116.1%-16.9pp	133%-0.4pp
Returns
Return on equity	136.8%-17.1pp	153.9%-5.7pp	159.6%-34.6pp	194.2%+18.1pp
Return on assets	73.6%-4.3pp	77.9%+1.0pp	76.9%-9.5pp	86.4%+14.4pp
Return on invested capital	114.8%-9.8pp	124.6%+5.1pp	119.5%-13.6pp	133.1%+22.4pp
Efficiency
Asset turnover	2.1×-0.1×	2.2×-0.1×	2.3×0.0×	2.3×+0.2×
Inventory turnover	255.2×+133×	122×+41.2×	80.8×-1.9×	82.6×-9.8×
Liquidity
Current ratio	5.4×0.0×	5.4×-2.1×	7.5×-0.7×	8.2×-1.3×
Quick ratio	5.3×0.0×	5.3×-2.0×	7.3×-0.7×	8×-1.3×
Cash ratio	0.8×-0.3×	1.1×0.0×	1.1×+0.3×	0.8×0.0×
Leverage
Debt-to-equity	1.3×-0.1×	1.4×-0.3×	1.7×-0.3×	2×-0.5×
Debt-to-assets	0.7×0.0×	0.7×-0.1×	0.8×-0.1×	0.9×-0.1×
Net debt / EBITDA	2.2×+0.5×	1.6×-0.5×	2.2×-0.5×	2.7×-0.9×
Per Share
Book value per share	$168.20+28.1%	$131.31+29.5%	$101.38+19.3%	$84.98+22.0%
Valuation
Market capitalization	$12.77T+10.2%	$11.59T+41.4%	$8.2T-7.6%	$8.87T+25.8%
Enterprise value	$13.09T+10.9%	$11.79T+40.2%	$8.41T-7.8%	$9.12T+24.6%
Price / earnings	133.8×-4.5×	138.3×+20.8×	117.4×-7.6×	125×-5.6×
Price / sales	47.8×-2.0×	49.8×+10.2×	39.6×-7.8×	47.4×+2.6×
Price / book	40.7×-6.3×	47.1×+4.0×	43×-12.4×	55.4×+2.3×
EV / EBITDA	88.1×-9.0×	97×+12.4×	84.6×-13.9×	98.5×+0.5×
EV / sales	49×-1.6×	50.7×+10.0×	40.6×-8.1×	48.7×+2.2×
Free cash flow yield	9%-0.6pp	9.6%-2.4pp	12%+0.6pp	11.4%-0.5pp
Earnings yield	12%+0.4pp	11.6%-2.2pp	13.9%+0.9pp	12.9%+0.7pp
Dividend yield	2.9%0.0pp	2.9%-0.9pp	3.8%+0.6pp	3.2%-0.5pp
PEG ratio	9.4×+1.8×	7.6×—	——	4.1×-2.4×

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Questions, answered.

What are Microsoft's profit margins?: Microsoft (MSFT) runs a 68.3% gross margin and a 46.8% operating margin, with a 39.3% net margin.
Where do Microsoft's ratios come from?: Every ratio is computed from Microsoft's SEC filings — trailing-twelve-month flows over period-end balances. Valuation multiples combine those fundamentals with market data, recomputed each period. Switch between quarterly, annual, and TTM, or open any ratio for its full history and peer comparisons.