Flagship explainer

What drives MICROSOFT CORPORATION’s return on equity?

ROE is five filed business factors multiplied together.

DuPont return on equity factor treeReturn on equity branches into tax burden, interest burden, operating margin, asset turnover, and the equity multiplier.Return on equity33%Tax burden82%net income ÷ pretax incomeInterest burden96%pretax ÷ operating incomeOperating margin46%operating income ÷ revenueAsset turnover0.50×revenue ÷ average assetsEquity multiplier1.85×average assets ÷ average equityAs of 2025-06-30 · 3 SEC filing sourcesBuy Like Buffett · buylikebuffett.com
DuPont source inputs
InputValueFiscal yearSource
$101.8BFY2025
Income before tax$123.6BFY2025
Operating income$128.5BFY2025
$281.7BFY2025
Ending assets$619.0BFY2025
Beginning assets$512.2BFY2024
$343.5BFY2025
$268.5BFY2024
Source: · event Jun 30, 2025 · retrieved Jul 26, 2026 · annual-row source set
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MSFT dupont explainer — Buy Like Buffett · Buy Like Buffett