Microsoft Corporation (MSFT)

Debt-to-equity ratio

		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	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	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	66,662,000	66,585,000
Total stockholders’ equity	US$ in thousands	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	102,330,000	94,864,000
Debt-to-equity ratio		0.19	0.19	0.20	0.22	0.24	0.26	0.28	0.30	0.30	0.33	0.35	0.37	0.42	0.46	0.50	0.55	0.58	0.63	0.65	0.70

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $44,928,000K ÷ $238,268,000K
= 0.19

The debt-to-equity ratio for Microsoft Corporation has shown some fluctuation over the past eight quarters.

The ratio decreased from 0.31 at the end of December 2022 to 0.23 at the end of June 2023, indicating a significant reduction in the company's reliance on debt to finance its operations. However, this was followed by an increase to 0.32 at the end of September 2023, suggesting a higher proportion of debt relative to equity.

Overall, the debt-to-equity ratio has remained relatively stable, ranging between 0.23 and 0.32 over the period. This indicates that Microsoft has maintained a healthy balance between debt and equity financing, with a generally conservative approach to leveraging. However, it is important to consider the reasons behind the fluctuations in the ratio and assess the potential impacts on the company's financial position and risk profile.