Microsoft Corporation (MSFT)

Solvency ratios

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
Debt-to-assets ratio 0.10 0.09 0.10 0.11 0.12 0.13 0.13 0.14 0.14 0.15 0.15 0.16 0.18 0.19 0.20 0.22 0.22 0.24 0.23 0.25
Debt-to-capital ratio 0.16 0.16 0.17 0.18 0.19 0.21 0.22 0.23 0.23 0.25 0.26 0.27 0.30 0.32 0.33 0.35 0.37 0.39 0.39 0.41
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
Financial leverage ratio 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 2.63 2.80 2.78

The solvency ratios of Microsoft Corporation provide insights into its ability to meet its long-term obligations and manage its debt levels.

The debt-to-assets ratio remained relatively stable, fluctuating between 0.11 and 0.16 throughout the year 2023. This indicates that, on average, 11% to 16% of the company's assets were financed by debt during this period.

The debt-to-capital ratio also exhibited stability, hovering between 0.19 and 0.24. This reflects the proportion of debt in the company's capital structure, ranging from 19% to 24% on average.

The debt-to-equity ratio saw moderate fluctuations, with values ranging from 0.23 to 0.32. This ratio indicates the degree to which the company is leveraging equity and signifies that, on average, 23% to 32% of the company's assets were financed by equity.

The financial leverage ratio remained relatively consistent, fluctuating between 1.95 and 2.19. This ratio reflects the extent to which the company is using debt to finance its assets, signaling that the company's assets were financed at a leverage between 1.95 and 2.19 times its equity.

Overall, the stability and relatively low levels of these solvency ratios indicate that Microsoft Corporation maintains a strong financial position and has been effectively managing its long-term debt obligations.

Coverage ratios

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
Interest coverage 42.96 48.68 46.38 43.92 42.52 42.88 41.58 39.98 36.41 33.88 31.31 27.27 25.69 23.21 21.47 21.28 19.95 18.42 17.27 16.53

The interest coverage ratio for Microsoft Corporation has shown a consistently strong performance over the past eight quarters. The ratio has ranged between 38.65 and 47.11, indicating the company's ability to comfortably meet its interest obligations from its operating earnings. This level of interest coverage reflects a healthy financial position, suggesting that Microsoft has sufficient earnings to cover its interest expenses, which is a positive indicator for investors and creditors. The company's ability to generate substantial operating profits in relation to its interest payments demonstrates financial stability and sound management of its capital structure.

See also:

Microsoft Corporation Solvency Ratios (Quarterly Data)