Microsoft Corporation (MSFT)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 619,003,000 | 512,163,000 | 411,976,000 | 364,840,000 | 333,779,000 |
| Total stockholders’ equity | US$ in thousands | 343,479,000 | 268,477,000 | 206,223,000 | 166,542,000 | 141,988,000 |
| Financial leverage ratio | 1.80 | 1.91 | 2.00 | 2.19 | 2.35 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $619,003,000K ÷ $343,479,000K
= 1.80
The financial leverage ratio of Microsoft Corporation has demonstrated a consistent downward trend over the period from June 30, 2021, to June 30, 2025. Specifically, the ratio decreased from 2.35 in 2021 to 2.19 in 2022, further declining to 2.00 in 2023, then to 1.91 in 2024, and reaching 1.80 in 2025. This pattern indicates a gradual reduction in the company's reliance on debt relative to equity. A declining financial leverage ratio suggests that Microsoft has been progressively deleveraging its capital structure, potentially favoring increased equity financing or reducing its accumulated debt levels. This trend generally signifies a shift towards a more conservative financial position, potentially lowering financial risk and interest obligations. Overall, the observed decrease in the financial leverage ratio reflects an evolving corporate strategy aimed at maintaining a more balanced and potentially less risky capital structure over the analyzed period.
Peer comparison
Jun 30, 2025