Stock Analysis on Net
Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

Common-Size Balance Sheet: Assets

Microsoft Corp., common-size consolidated balance sheet: assets

Microsoft Excel
Jun 30, 2026 Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Cash and cash equivalents 2.76 4.89 3.58 8.42 3.82 4.26
Short-term investments 7.37 10.39 11.17 18.58 24.89 34.79
Cash, cash equivalents, and short-term investments 10.13% 15.28% 14.75% 27.01% 28.71% 39.05%
Accounts receivable, net of allowance for doubtful accounts 10.66 11.29 11.11 11.82 12.13 11.40
Inventories 0.18 0.15 0.24 0.61 1.03 0.79
Other current assets 6.41 4.16 5.08 5.29 4.64 4.01
Current assets 27.39% 30.88% 31.19% 44.73% 46.51% 55.25%
Property and equipment, net of accumulated depreciation 41.28 33.11 26.47 23.22 20.39 17.89
Operating lease right-of-use assets 3.19 4.01 3.70 3.48 3.60 3.32
Equity and other investments 4.79 2.49 2.85 2.40 1.89 1.79
Goodwill 15.78 19.31 23.28 16.48 18.51 14.89
Intangible assets, net 2.45 3.65 5.39 2.27 3.10 2.34
Other long-term assets 5.12 6.55 7.12 7.43 6.00 4.52
Long-term assets 72.61% 69.12% 68.81% 55.27% 53.49% 44.75%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).

The asset composition reveals a fundamental shift in the balance sheet structure, characterized by a transition from a highly liquid position to a more capital-intensive asset base. There is a consistent and significant migration of value from current assets to long-term assets over the analyzed period.

Liquidity and Current Asset Trends
A pronounced downward trend is observed in the proportion of current assets, which declined from 55.25% of total assets in 2021 to 27.39% by 2026. This contraction is primarily driven by the reduction in cash, cash equivalents, and short-term investments, which fell from 39.05% to 10.13%. Specifically, short-term investments saw the most aggressive decrease, dropping from 34.79% in 2021 to 7.37% in 2026, indicating a strategic deployment of liquid reserves into other areas of the business.
Capital Investment and Infrastructure
Property and equipment, net of accumulated depreciation, exhibit the most significant growth of any asset category. This item rose from 17.89% of total assets in 2021 to 41.28% in 2026. This steady increase suggests a substantial and sustained expansion of physical infrastructure and capital expenditures, fundamentally altering the company's asset profile to be more dominated by fixed assets.
Intangible Assets and Goodwill
Goodwill and intangible assets show a pattern of volatility rather than a linear trend. Goodwill peaked at 23.28% in 2024 before contracting to 15.78% by 2026. Similarly, net intangible assets experienced a spike in 2024 at 5.39% before returning to a lower level of 2.45% by 2026. These fluctuations suggest periodic acquisitions followed by subsequent amortization or impairment adjustments.
Overall Asset Mix Evolution
The broader balance sheet trajectory demonstrates a reversal in asset weighting. Long-term assets, which represented 44.75% of the total in 2021, expanded to comprise 72.61% by 2026. This shift reflects a strategic pivot away from maintaining high levels of short-term liquidity in favor of investing in long-term productive capacity and infrastructure.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?