Microsoft Corporation (MSFT)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	302,695,000	287,723,000	253,152,000	238,268,000	220,714,000	206,223,000	194,683,000	183,136,000	173,566,000	166,542,000	162,924,000	160,010,000	151,978,000	141,988,000	134,505,000	130,236,000	123,392,000	118,304,000	114,501,000	110,109,000
Debt-to-capital ratio		0.12	0.13	0.14	0.16	0.16	0.17	0.18	0.19	0.21	0.22	0.23	0.23	0.25	0.26	0.27	0.30	0.32	0.33	0.35	0.37

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $39,722,000K ÷ ($39,722,000K + $302,695,000K)
= 0.12

The debt-to-capital ratio of Microsoft Corporation has been steadily decreasing over the past five years, indicating a favorable trend in the company's capital structure. As of December 31, 2019, the ratio stood at 0.37 and declined to 0.12 by December 31, 2024. This downward trend suggests that Microsoft has been reducing its reliance on debt financing and increasing the proportion of equity in its capital structure. A lower debt-to-capital ratio implies a lower financial risk for the company, as it indicates a lower level of debt relative to its total capital. Overall, the decreasing trend in Microsoft's debt-to-capital ratio reflects a healthier financial position and a more balanced capital structure.