Microsoft Corporation (MSFT)

Debt-to-assets ratio

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	39,722,000	42,868,000	42,658,000	44,928,000	41,946,000	41,990,000	41,965,000	44,119,000	45,374,000	47,032,000	48,177,000	48,260,000	50,039,000	50,074,000	50,007,000	55,136,000	57,055,000	59,578,000	62,862,000	63,361,000
Total assets	US$ in thousands	533,898,000	523,013,000	484,275,000	470,558,000	445,785,000	411,976,000	380,088,000	364,552,000	359,784,000	364,840,000	344,607,000	340,389,000	335,418,000	333,779,000	308,879,000	304,137,000	301,001,000	301,311,000	285,449,000	282,794,000
Debt-to-assets ratio		0.07	0.08	0.09	0.10	0.09	0.10	0.11	0.12	0.13	0.13	0.14	0.14	0.15	0.15	0.16	0.18	0.19	0.20	0.22	0.22

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $39,722,000K ÷ $533,898,000K
= 0.07

The debt-to-assets ratio of Microsoft Corporation has shown a declining trend over the past few years, indicating a strengthening financial position in terms of solvency and risk management. As of December 31, 2019, the ratio stood at 0.22 and steadily decreased to 0.07 by December 31, 2024.

This decreasing trend suggests that Microsoft has been effectively managing its debt levels relative to its total assets, which is a positive sign for investors and creditors. A lower debt-to-assets ratio signifies a lower reliance on debt to finance operations and indicates a healthier balance sheet.

Overall, the downward trajectory of Microsoft's debt-to-assets ratio indicates improved financial health and a more solid financial foundation, highlighting the company's ability to meet its financial obligations and potential for future growth.