Microsoft Corporation (MSFT)

Debt-to-capital ratio

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	343,479,000	321,891,000	302,695,000	287,723,000	268,477,000	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
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

June 30, 2025 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $343,479,000K)
= 0.00

The analysis of Microsoft Corporation’s debt-to-capital ratio, based on the provided data, indicates a consistent value of zero across all reported periods from September 30, 2020, through June 30, 2025. This suggests that during this timeframe, Microsoft has not employed external debt financing in a manner that affects its capital structure, or that any debt component is negligible relative to its total capitalization. A zero debt-to-capital ratio reflects a capital structure entirely composed of equity, implying a conservative approach to leveraging and a potential preference for self-financing or retained earnings to support growth and operations. Such a consistent ratio further indicates stability in the company’s financial strategy, with no significant change in leverage levels over the observed periods. This situation is characteristic of firms with strong cash reserves and minimal reliance on debt financing to fund their activities.