Analysis of Reportable Segments
Microsoft Corp. operates in 3 segments: Productivity and Business Processes; Intelligent Cloud; and More Personal Computing.
Segment Profit Margin
Microsoft Corp., profit margin by reportable segment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|
| Productivity and Business Processes | 52.16% | 49.35% | 46.85% | 45.17% | 40.36% | 39.40% |
| Intelligent Cloud | 47.06% | 43.10% | 43.48% | 43.49% | 37.89% | 35.71% |
| More Personal Computing | 31.13% | 30.05% | 35.16% | 35.94% | 32.98% | 28.05% |
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Productivity and Business Processes | Productivity and Business Processes segment profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Intelligent Cloud | Intelligent Cloud segment profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. | |
| More Personal Computing | More Personal Computing segment profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Segment Profit Margin: Productivity and Business Processes
Microsoft Corp.; Productivity and Business Processes; segment profit margin calculation
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 40,540) | 34,189) | 29,687) | 24,351) | 18,724) | 16,219) |
| Revenue | 77,728) | 69,274) | 63,364) | 53,915) | 46,398) | 41,160) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 52.16% | 49.35% | 46.85% | 45.17% | 40.36% | 39.40% |
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
1 2024 Calculation
Segment profit margin = 100 × Operating income ÷ Revenue
= 100 × 40,540 ÷ 77,728 = 52.16%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Productivity and Business Processes | Productivity and Business Processes segment profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
Segment Profit Margin: Intelligent Cloud
Microsoft Corp.; Intelligent Cloud; segment profit margin calculation
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 49,584) | 37,884) | 32,721) | 26,126) | 18,324) | 13,920) |
| Revenue | 105,362) | 87,907) | 75,251) | 60,080) | 48,366) | 38,985) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 47.06% | 43.10% | 43.48% | 43.49% | 37.89% | 35.71% |
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
1 2024 Calculation
Segment profit margin = 100 × Operating income ÷ Revenue
= 100 × 49,584 ÷ 105,362 = 47.06%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Intelligent Cloud | Intelligent Cloud segment profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Segment Profit Margin: More Personal Computing
Microsoft Corp.; More Personal Computing; segment profit margin calculation
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 19,309) | 16,450) | 20,975) | 19,439) | 15,911) | 12,820) |
| Revenue | 62,032) | 54,734) | 59,655) | 54,093) | 48,251) | 45,698) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 31.13% | 30.05% | 35.16% | 35.94% | 32.98% | 28.05% |
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
1 2024 Calculation
Segment profit margin = 100 × Operating income ÷ Revenue
= 100 × 19,309 ÷ 62,032 = 31.13%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | More Personal Computing | More Personal Computing segment profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Revenue
Microsoft Corp., revenue by reportable segment
US$ in millions
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|
| Productivity and Business Processes | 77,728) | 69,274) | 63,364) | 53,915) | 46,398) | 41,160) |
| Intelligent Cloud | 105,362) | 87,907) | 75,251) | 60,080) | 48,366) | 38,985) |
| More Personal Computing | 62,032) | 54,734) | 59,655) | 54,093) | 48,251) | 45,698) |
| Total | 245,122) | 211,915) | 198,270) | 168,088) | 143,015) | 125,843) |
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
Operating income
Microsoft Corp., operating income by reportable segment
US$ in millions
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|
| Productivity and Business Processes | 40,540) | 34,189) | 29,687) | 24,351) | 18,724) | 16,219) |
| Intelligent Cloud | 49,584) | 37,884) | 32,721) | 26,126) | 18,324) | 13,920) |
| More Personal Computing | 19,309) | 16,450) | 20,975) | 19,439) | 15,911) | 12,820) |
| Total | 109,433) | 88,523) | 83,383) | 69,916) | 52,959) | 42,959) |
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).