Microsoft Corporation (MSFT)
Debt-to-assets ratio
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 41,990,000 | 47,032,000 | 50,074,000 | 59,578,000 | 66,662,000 |
| Total assets | US$ in thousands | 411,976,000 | 364,840,000 | 333,779,000 | 301,311,000 | 286,556,000 |
| Debt-to-assets ratio | 0.10 | 0.13 | 0.15 | 0.20 | 0.23 |
June 30, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $41,990,000K ÷ $411,976,000K
= 0.10
The debt-to-assets ratio of Microsoft Corporation has shown a declining trend over the past five years, decreasing from 0.25 in June 2019 to 0.11 in June 2023. This ratio indicates the proportion of the company's assets that are financed by debt. A lower ratio suggests that a smaller portion of the company's assets is funded by debt, which can be seen as a positive sign of greater financial stability and lower solvency risk. Microsoft's decreasing debt-to-assets ratio reflects a reduction in reliance on debt financing to fund its operations and investments, potentially signaling a stronger financial position and improved risk management. This trend may be indicative of the company's effective capital management and prudent financial decision-making, enhancing its overall creditworthiness and capacity to weather economic downturns.
Peer comparison
Jun 30, 2023