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Microsoft MSFT Return on invested capital

Return on invested capital at other companies

International Business Machines logo
International Business MachinesIBM
13.2%+4.1pp
Apple logo
AppleAAPL
89.1%+17.8pp
Electronic Arts logo
Electronic ArtsEA
19.7%-2.6pp
PTC logo
PTCPTC
19.3%+8.6pp
Take-Two Interactive Software logo
Take-Two Interactive SoftwareTTWO
-2.7%-1.3pp
Amazon logo
AmazonAMZN
14%-3.8pp

Other financials

Income statement

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Revenue$82.9B+18.3%
Gross profit$56.1B+16.4%
Operating income$38.4B+20.0%
Net income$31.8B+23.1%
EPS (diluted)$4.27+23.4%

Balance sheet

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Cash & equivalents$32.1B+11.4%
Total debt$125.43B+19.4%
Total equity$414.37B+28.7%
Total assets$694.23B+23.4%

Cash flow

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Operating cash flow$46.7B+26.0%
CapEx$30.9B+84.4%
Free cash flow$15.8B-22.2%

Valuation

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Market cap$2.81T-1.5%
Enterprise value$2.91T-0.9%
P/E22.5×-7.1×
P/S8.8×-1.7×

Profitability

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Gross margin68.3%-0.8pp
Operating margin46.8%+1.6pp
Net margin39.3%+3.6pp

Returns & leverage

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Return on equity34%+0.4pp
Debt / equity0.3×0.0×
Current ratio1.3×-0.1×

Where this comes from

Calculated from Microsoft’s reported figures.

Based on trailing twelve months.

The official record: Microsoft’s 10-Q, filed April 29, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Microsoft's return on invested capital?
Microsoft (MSFT) reported return on invested capital of 26.7% in Q1 2026.
How has Microsoft's return on invested capital changed year-over-year?
Microsoft's return on invested capital decreased by 4.2% year-over-year, from 27.8% to 26.7%.
What is the long-term trend for Microsoft's return on invested capital?
Over 4 years (2021 to 2025), Microsoft's return on invested capital has grown at a 0.9% compound annual growth rate (CAGR), from 110.7% to 114.8%.
What does return on invested capital mean?
The after-tax return the business earns on all the capital — debt and equity — invested in it.
How do you interpret return on invested capital?
The cleanest measure of business quality: ROIC sustained above the cost of capital creates value, below it destroys value. Compare against WACC, not against zero.
How does return on invested capital compare across companies?
Highly comparable across companies as a quality screen. Sector-sensitive definitions of invested capital mean banks/insurers are best excluded.