Microsoft Corporation (MSFT)
Financial leverage ratio
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 619,003,000 | 562,624,000 | 533,898,000 | 523,013,000 | 512,163,000 | 484,275,000 | 470,558,000 | 445,785,000 | 411,976,000 | 380,088,000 | 364,552,000 | 359,784,000 | 364,840,000 | 344,607,000 | 340,389,000 | 335,418,000 | 333,779,000 | 308,879,000 | 304,137,000 | 301,001,000 |
| Total stockholders’ equity | US$ in thousands | 343,479,000 | 321,891,000 | 302,695,000 | 287,723,000 | 268,477,000 | 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 |
| Financial leverage ratio | 1.80 | 1.75 | 1.76 | 1.82 | 1.91 | 1.91 | 1.97 | 2.02 | 2.00 | 1.95 | 1.99 | 2.07 | 2.19 | 2.12 | 2.13 | 2.21 | 2.35 | 2.30 | 2.34 | 2.44 |
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 experienced notable fluctuations over the analyzed period from September 30, 2020, to June 30, 2025. Beginning at a high of 2.44 in September 2020, the ratio exhibited a gradual overall decline, reflecting a trend toward a more conservatively leveraged capital structure. Specifically, the ratio decreased to approximately 2.34 by the end of 2020 and further declined to around 2.13 by the end of 2021, indicating a reduction in the company's reliance on debt relative to equity during this interval.
This downward movement persisted into 2022, with the ratio reaching approximately 2.07 in September 2022 and falling below 2.00 to 1.99 by the end of 2022. The trend continued into 2023 and 2024, with the ratio stabilizing around 1.91 in March and June of 2024, then further decreasing to about 1.76 in December 2024. By March 2025, the ratio slightly increased to 1.75 but remained within a narrow range, and it slightly rose again to 1.80 by June 2025.
Throughout this period, the data suggests that Microsoft's leverage has steadily decreased from the higher levels observed in 2020. This decline indicates a strategic shift toward reducing financial risk by decreasing debt levels or increasing equity, leading to a more conservative capital structure. The relatively stable and lower leverage ratios in the latter years imply an emphasis on financial stability and reduced reliance on debt financing, potentially aligning with risk management strategies and ongoing corporate growth considerations.
Peer comparison
Jun 30, 2025