Microsoft Corporation (MSFT)

Debt-to-equity ratio

		Dec 31, 2024	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
Long-term debt	US$ in thousands	39,722,000	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
Total stockholders’ equity	US$ in thousands	302,695,000	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
Debt-to-equity ratio		0.13	0.15	0.17	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

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $39,722,000K ÷ $302,695,000K
= 0.13

The debt-to-equity ratio of Microsoft Corporation has been steadily decreasing over the years, indicating a decreasing reliance on debt compared to equity to finance its operations and growth. The ratio dropped from 0.58 as of December 31, 2019, to 0.13 as of December 31, 2024. This declining trend suggests that Microsoft has been efficiently managing its debt levels and strengthening its financial position by reducing debt and potentially increasing equity through retained earnings or equity financing. A lower debt-to-equity ratio typically signifies a lower financial risk and a healthier balance sheet, which can enhance investor confidence and creditworthiness.