Microsoft Corporation (MSFT)

Financial leverage 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
Total assets	US$ in thousands	533,898,000	523,013,000	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	301,311,000	285,449,000	282,794,000
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
Financial leverage ratio		1.76	1.82	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	2.55	2.49	2.57

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $533,898,000K ÷ $302,695,000K
= 1.76

The financial leverage ratio of Microsoft Corporation has exhibited a gradual decreasing trend over the observed period. The ratio decreased from 2.57 as of December 31, 2019, to 1.76 as of December 31, 2024. This implies that the company's reliance on debt to finance its operations has been reducing over time. A declining financial leverage ratio indicates that Microsoft has been using less debt in its capital structure relative to its equity. This trend could suggest a more conservative approach to managing financial risk and a stronger financial position. Overall, the decreasing trend in the financial leverage ratio for Microsoft Corporation signifies a healthier and less leveraged financial structure.