Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
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Microsoft Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity
Based on: 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), 10-K (reporting date: 2020-06-30).
- Current Liabilities Trends
- Current liabilities as a percentage of total liabilities and stockholders’ equity showed a gradual decline from 24% in 2020 to 22.81% in 2025. Within this category, accounts payable fluctuated slightly, peaking at 5.21% in 2022 before declining to 4.48% in 2025. Accrued compensation decreased steadily from 2.61% in 2020 to 2.21% in 2025. Short-term income taxes showed minor variability, ending slightly higher at 1.16% in 2025 compared to 0.71% in 2020. Short-term unearned revenue exhibited a gradual decline from a high of 12.48% in 2022 down to 10.43% by 2025. Other current liabilities remained relatively stable, slightly increasing from 3.15% to 3.53% over the period. The current finance lease liabilities rose from 0.18% in 2020 to 0.51% in 2025.
- Debt Structure and Long-Term Liabilities
- A notable trend is the significant reduction in long-term debt excluding the current portion, which dropped steadily from 19.77% in 2020 to 6.49% in 2025, indicating a strong deleveraging effort. Correspondingly, total long-term liabilities decreased from 36.74% to 21.7% over the same period. Long-term income taxes also declined from 9.77% to 4.2%. Long-term unearned revenue decreased mildly. Deferred income taxes showed an increase starting in 2023, rising from 0.07% in 2020 to a peak of 0.51% in 2024 before slightly falling to 0.46% in 2025. Long-term finance lease liabilities exhibited a significant upward trend, more than doubling from 2.97% in 2020 to 6.95% in 2025, suggesting increased commitments under finance leases. Long-term operating lease liabilities remained relatively constant around 3%, with a slight decrease towards the end.
- Total Liabilities and Equity Composition
- Total liabilities as a percentage of total liabilities and stockholders’ equity declined steadily from 60.74% in 2020 to 44.51% in 2025, reflecting a reduced reliance on liabilities. Equity components showed complementary trends: stockholders’ equity increased from 39.26% to 55.49% over the same period. Retained earnings made a substantial contribution to this increase, rising sharply from 11.47% in 2020 to 38.41% in 2025, indicating strong earnings retention or profitability accumulation. In contrast, common stock and paid-in capital decreased from 26.73% to 17.62%, possibly reflecting share buybacks or other capital structure adjustments. Accumulated other comprehensive income (loss) fluctuated, turning negative from 2022 onward but improving slightly by 2025, moving from -1.54% to -0.54%. These changes signify an overall strengthening of the equity base relative to liabilities.
- Overall Financial Position Insights
- The data indicate a deliberate shift towards a stronger equity position with reduced debt levels, particularly long-term debt. The increasing retained earnings ratio supports a robust accumulation of internal funds. Current liabilities have marginally decreased, and the nature of liabilities appears to be shifting with a reduction in debt balances and an increase in lease-related liabilities. The decline in common stock and paid-in capital with the simultaneous increase in retained earnings and equity suggests active management of the capital structure, potentially through dividend policies or share repurchase programs. The consistent total of 100% across liabilities and equity confirms internal consistency across reported periods.