Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data
Microsoft Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
- Accounts Payable
- Accounts payable as a percentage of total liabilities and stockholders’ equity increased from around 3.07% in late 2019 to a peak above 5% by late 2025, indicating a rising proportion of short-term obligations related to payable accounts.
- Short-term Debt
- Short-term debt data appears only in the later periods, showing a spike to nearly 5.79% around 2023 before decreasing to lower values in subsequent periods, suggesting fluctuating reliance on short-term borrowing.
- Current Portion of Long-term Debt
- This liability component fluctuated between about 0.4% and 2.6%, exhibiting a general downward trend after 2021, implying a reduction in the immediate repayments required on long-term debt.
- Accrued Compensation
- Accrued compensation displayed variability with peaks around 3%, particularly in 2021 and early 2022, but generally remained between 1.4% and 3.0%, showing periodic increases but no clear persistent trend.
- Short-term Income Taxes
- Short-term income taxes varied within the range of approximately 0.5% to 1.8%, with ups and downs but no sustained upward or downward trajectory, reflecting fluctuating tax liabilities over the quarters.
- Short-term Unearned Revenue
- This account remained one of the largest current liabilities, hovering mostly above 9% and sometimes reaching near 12%, suggesting persistent deferred revenue from customer advances that fluctuate with business cycles.
- Other Current Liabilities
- Other current liabilities held steady at roughly 3% to 4%, showing modest growth over time, indicating stable minor current liabilities aside from main categories.
- Current Liabilities
- Overall current liabilities as a percent of total liabilities and equity showed fluctuation between 20% and 27%, with peaks in mid-2021 and again in mid-2023, suggesting variable short-term obligations aligned with operational needs.
- Long-term Debt, Excluding Current Portion
- Long-term debt steadily declined from near 24% in late 2019 to below 6% by 2025, indicating a significant reduction in the company’s reliance on long-term borrowing relative to its total capital structure.
- Long-term Income Taxes
- Long-term income tax liabilities decreased progressively from about 10% to around 4%, showing a notable downward trend that may reflect strategic tax planning or changes in deferred tax liabilities.
- Long-term Unearned Revenue
- This component remained relatively minor and stable, declining slightly from near 1.5% to below 0.5%, indicating reduced long-term deferred revenue obligations.
- Deferred Income Taxes
- Deferred income taxes were consistently very low, generally below 0.6%, but showed a small increase starting in 2022, possibly indicating adjustments in tax timing differences.
- Long-term Operating Lease Liabilities
- Long-term operating lease liabilities stayed stable between roughly 2.4% and 3.3%, indicating consistent lease obligations without significant fluctuations over the periods.
- Other Long-term Liabilities
- This category rose notably from about 3.2% in 2019 to over 8% by 2025, suggesting a growing proportion of other long-term obligations, which may include pension liabilities, contingent liabilities, or other provisions.
- Long-term Liabilities Total
- The overall long-term liabilities declined from approximately 41% in 2019 to near 22% by 2025, reflecting the decrease in long-term debt and long-term income taxes despite the rise in other long-term liabilities.
- Total Liabilities
- Total liabilities as a percentage of total capital decreased from nearly 62% to around 43% by 2025, indicating a gradual reduction in leverage and a shift toward lower liability levels relative to equity.
- Common Stock and Paid-in Capital
- The proportion of common stock and paid-in capital declined from about 28% to under 18%, reflecting either capital returns, share repurchases, or other equity adjustments decreasing the relative share of paid-in capital.
- Retained Earnings
- Retained earnings increased substantially, nearly quadrupling from about 10% to over 40%, indicative of strong profit retention and reinvestment, enhancing the equity base.
- Accumulated Other Comprehensive Income (Loss)
- This component remained negative or near zero, showing some fluctuations but generally a small net loss balance relative to total capital, suggesting limited impact from currency translation adjustments or other comprehensive income items.
- Stockholders’ Equity
- Stockholders’ equity increased steadily from about 38% to above 57%, supporting the observation of deleveraging and capital growth largely driven by retained earnings accumulation.
- Total Liabilities and Stockholders’ Equity
- The total remained constant at 100% by definition, offering a basis to analyze structural shifts between liabilities and equity components over time.