Microsoft Corporation (MSFT)

Debt-to-capital ratio

		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	Sep 30, 2019
Long-term debt	US$ in thousands	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	66,478,000
Total stockholders’ equity	US$ in thousands	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	106,061,000
Debt-to-capital ratio		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	0.39

September 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $42,868,000K ÷ ($42,868,000K + $287,723,000K)
= 0.13

The debt-to-capital ratio of Microsoft Corporation has been relatively stable over the past several quarters, with a gradual increase trend. As of September 30, 2024, the ratio stands at 0.13, indicating that debt represents 13% of the company's total capital structure. This suggests that Microsoft relies more on equity financing rather than debt to fund its operations and investments.

The slight fluctuations in the debt-to-capital ratio over the observed period may reflect changes in the company's capital structure and debt levels. Despite the increasing trend, the ratio remains at a relatively low level, indicating a conservative approach to leverage and financial risk management.

Overall, the debt-to-capital ratio provides insights into Microsoft's ability to cover its financial obligations with the existing capital structure. Investors and analysts may monitor this ratio to assess the company's financial health, risk exposure, and capital allocation strategies.