Common-Size Balance Sheet: Assets
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Cash Flow Statement
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
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Microsoft Corp., common-size consolidated balance sheet: assets
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.