Microsoft Corporation (MSFT)
Debt-to-equity ratio
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 41,990,000 | 47,032,000 | 50,074,000 | 59,578,000 | 66,662,000 |
| Total stockholders’ equity | US$ in thousands | 206,223,000 | 166,542,000 | 141,988,000 | 118,304,000 | 102,330,000 |
| Debt-to-equity ratio | 0.20 | 0.28 | 0.35 | 0.50 | 0.65 |
June 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $41,990,000K ÷ $206,223,000K
= 0.20
The debt-to-equity ratio of Microsoft Corporation has shown a decreasing trend over the past five years, decreasing from 0.71 in 2019 to 0.23 in 2023. This indicates that the company has been relying less on debt financing in relation to equity. A lower debt-to-equity ratio suggests that the company is using less leverage and may be in a better position to fulfill its debt obligations. Overall, the trend is indicative of a strengthening financial position in terms of the company's capital structure and risk management. However, it's important to consider other financial metrics and contextual factors to fully assess the company's financial health.
Peer comparison
Jun 30, 2023