Microsoft Corporation (MSFT)

Debt-to-assets ratio

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	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	66,478,000	66,662,000	66,585,000
Total assets	US$ in thousands	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	278,955,000	286,556,000	263,281,000
Debt-to-assets ratio		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	0.24	0.23	0.25

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $44,928,000K ÷ $470,558,000K
= 0.10

The debt-to-assets ratio for Microsoft Corporation has remained relatively stable over the past year, fluctuating within a narrow range. As of December 31, 2023, the ratio stands at 0.16, indicating that approximately 16% of the company's assets are financed by debt. This suggests that Microsoft relies more on equity financing rather than debt to fund its operations and investments.

Comparing this to the previous quarters, the ratio remained consistent at 0.16 for the past two quarters, signifying a sustained level of debt in relation to assets. However, in the second and third quarters of 2023, the ratio was lower at 0.11 and 0.13, respectively, implying a temporary decrease in the proportion of debt relative to assets. It is important to note that a lower debt-to-assets ratio generally indicates a lower financial risk and greater financial stability.

Overall, Microsoft's debt-to-assets ratio reflects a balanced capital structure, with a relatively low reliance on debt financing, providing a favorable signal to investors and creditors regarding the company's financial health and risk management.