Microsoft Corporation (MSFT)
Debt-to-equity ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 268,477,000 | 206,223,000 | 166,542,000 | 141,988,000 | 118,304,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
June 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $268,477,000K
= 0.00
Based on the provided data, Microsoft Corporation has consistently maintained a debt-to-equity ratio of 0.00 from June 30, 2020, to June 30, 2024. A debt-to-equity ratio of 0.00 indicates that the company has no debt or a very minimal amount of debt in relation to its equity. This signifies a strong financial position, as a lower debt-to-equity ratio typically suggests lower financial risk and indicates that the company is primarily using equity to finance its operations. Microsoft's consistent zero debt-to-equity ratio over the five-year period reflects a stable capital structure and a conservative approach towards leveraging debt, which can be viewed positively by investors and creditors.
Peer comparison
Jun 30, 2024