Microsoft Corp. (NASDAQ:MSFT) 

The financial data reveals fluctuating trends in current assets and adjusted current assets over the given periods. The current assets displayed a slight increase from June 30, 2020, to June 30, 2021, rising from 181,915 million USD to 184,406 million USD. This was followed by a decrease in the next year to 169,684 million USD as of June 30, 2022. The value rebounded in June 30, 2023, to 184,257 million USD, then declined again in June 30, 2024, to 159,734 million USD, before increasing sharply to 191,131 million USD by June 30, 2025.

Similarly, the adjusted current assets trends closely mirror those of the current assets, with slight variances in levels but following the same overall pattern. From a high of 182,703 million USD in June 30, 2020, adjusted current assets increased marginally to 185,157 million USD by June 30, 2021, before declining to 170,317 million USD as of June 30, 2022. The adjusted current assets then increased to 184,907 million USD in June 30, 2023, dropped to a lower amount of 160,564 million USD in June 30, 2024, and finally rose to 192,075 million USD in June 30, 2025.

Trend Summary

Both current assets and adjusted current assets show volatility over the six-year period with alternating increases and decreases.

The data indicates that after a peak in 2021, there was a reduction over the next year, followed by a recovery in 2023, a subsequent decline in 2024, and a strong increase in 2025.

The values in 2025 surpass all prior years in the data set, suggesting a significant buildup in liquid or short-term resources by the end of the period.

The similar patterns between current and adjusted current assets imply consistency in the adjustments applied, with the adjusted values being slightly higher than the unadjusted ones in all periods.

Overall, the observed trends in both current assets and adjusted current assets suggest fluctuating liquidity positions with an ultimate strengthening by the end of the reported timeline. This may reflect operational changes, asset management strategies, or market conditions impacting short-term asset levels.

The analysis of the available financial data indicates a consistent upward trend in both total assets and adjusted total assets over the examined periods.

Total assets

The total assets of the company have shown steady growth from 301,311 million US dollars on June 30, 2020, to 619,003 million US dollars on June 30, 2025. This represents an increase of more than 100% over five years, indicating a substantial expansion in the asset base. The growth rate appears to accelerate especially from 2023 onward, with the asset value rising from approximately 412 billion to over 619 billion in two years, suggesting an intensified investment or accumulation of assets during this later period.

Adjusted total assets

Adjusted total assets follow a similar increasing pattern, rising from 295,694 million US dollars in 2020 to 590,839 million in 2025. The adjusted figures remain slightly lower than total assets throughout all years, but maintain a consistent proportional relationship. This continuous rise reflects underlying asset growth after adjustments, which might exclude certain items for more precise valuation or accounting purposes. The growth trend is in line with that of total assets, reinforcing the indication of steady asset expansion.

Overall, the data underscores a strong positive trajectory in the company's asset base, both in gross and adjusted terms. The sustained increase year-over-year reflects potential growth initiatives, acquisitions, or improved asset management strategies contributing to enhanced balance sheet strength.

The financial data indicates a consistent upward trend in the current liabilities over the examined periods. The values for current liabilities exhibit a steady increase year over year, which suggests a growing short-term obligation. This growth may imply expanded operations, increased borrowing, or other factors leading to higher immediate financial commitments.

Similarly, the adjusted current liabilities, which appear to represent a refined measure of short-term obligations excluding certain items, also show a consistent increase across the periods. Although the figures for adjusted current liabilities are substantially lower than the total current liabilities, the year-to-year growth pattern is parallel, indicating that the underlying factors driving the increase in liabilities persist even after adjustment.

Current Liabilities

Increased from approximately 72.3 billion US dollars in mid-2020 to around 141.2 billion in mid-2025.

This represents nearly a doubling over the five-year span, suggesting rising short-term financial obligations.

Adjusted Current Liabilities

Increased from roughly 36.3 billion US dollars in mid-2020 to about 76.7 billion in mid-2025.

Though lower in absolute terms compared to total current liabilities, the upward trend is consistent and significant, nearly doubling over the same period.

Overall, the data suggests that the entity faces increasing short-term liabilities, both in gross and adjusted terms. This upward trajectory warrants attention to the underlying causes and potential impacts on liquidity and financial flexibility going forward.

Total Liabilities

The total liabilities exhibit a consistent upward trend from June 30, 2020, through to June 30, 2025. The liabilities increased steadily each year, starting at 183,007 million US dollars in 2020 and culminating at 275,524 million US dollars by 2025. This reflects a substantial growth in the company's financial obligations over the six-year period.

Adjusted Total Liabilities

Similarly, the adjusted total liabilities increase gradually from 143,623 million US dollars in 2020 to 205,424 million US dollars in 2025. The adjusted figures remain consistently lower than the total liabilities values but follow the same overall rising trend. Notably, both total liabilities and adjusted total liabilities demonstrate sharper increases starting from the fiscal year ended June 30, 2024, suggesting an acceleration in liabilities accumulation during the most recent periods.

Trend Analysis

The data indicate an expanding liability base over time, which may signal increased leveraging by the company or larger operational scale with corresponding financial commitments. The steady growth in both total and adjusted liabilities suggests ongoing investments or financing activities. The gap between total and adjusted liabilities remains relatively stable but widens slightly in the later years, possibly indicating adjustments in accounting measures or reclassification of certain liabilities.

Implications

The progressive increase in liabilities warrants monitoring to ensure that the company's asset base and revenue streams can sustain the growing obligations. The acceleration post-2023 could reflect strategic financial decisions or market conditions impacting debt levels. Stakeholders should consider these trends in the context of the company's overall financial health and risk management strategies.

The analysis of the stockholders' equity and adjusted stockholders' equity over the given period indicates a consistent upward trend, reflecting overall growth in the company's financial base.

Stockholders’ Equity

This metric shows a steady increase each year from June 30, 2020, to June 30, 2025. Starting at approximately 118.3 billion USD in 2020, it grows to an estimated 343.5 billion USD by 2025. The growth rate appears to accelerate particularly in the latter years, suggesting enhanced capital accumulation or retained earnings.

Adjusted Stockholders’ Equity

The adjusted stockholders' equity figures also demonstrate a consistent increase during the same period. Beginning at about 152.1 billion USD in 2020, the amount reaches roughly 385.4 billion USD by 2025. Similar to the basic stockholders' equity, the growth accelerates towards the end of the period, indicating adjustments that amplify the equity base, possibly accounting for intangible assets or revaluations.

Overall, the positive trajectory in both stockholders’ equity measurements signifies robust financial health and an expanding value base. The increasing equity may support future investment, dividend payments, or provide a cushion against liabilities. The divergence between the adjusted and unadjusted equity in absolute terms suggests that underlying asset adjustments contribute significantly to perceived financial strength.

The financial data over the six-year period reflects several notable trends in debt, equity, and capital structure.

Total Reported Debt

This metric shows an initial decline from 72,823 million US$ in 2020 to 64,304 million US$ in 2023. However, starting in 2024, there is a marked increase reaching 89,323 million US$ by 2025. This suggests a shift in leverage strategy or capital structure management in the later years.

Stockholders’ Equity

Stockholders’ equity demonstrates a consistent and strong upward trend throughout the period. Beginning at 118,304 million US$ in 2020, it grows steadily each year to reach 343,479 million US$ in 2025. The increase is particularly pronounced from 2023 onward, indicating substantial retained earnings, capital injections, or asset revaluations bolstering equity.

Total Reported Capital

The total reported capital, which combines debt and equity, mirrors the growth seen in equity but with more moderate fluctuations in debt. It increases consistently from 191,127 million US$ in 2020 to 432,802 million US$ in 2025, reflecting an overall expansion in the company's financing base.

Adjusted Total Debt

The adjusted total debt values show a pattern similar to total reported debt but consistently at a higher level, starting at 82,110 million US$ and increasing to 112,184 million US$ by 2025. This suggests the inclusion of additional debt-like liabilities or adjustments that broaden the scope of debt considered.

Adjusted Stockholders’ Equity

Adjusted equity follows the same upward trajectory as reported equity but with larger absolute values. It grows from 152,071 million US$ to 385,415 million US$, reinforcing the trend of increasing shareholder value when accounting for adjustments.

Adjusted Total Capital

Reflecting the adjusted figures for debt and equity, adjusted total capital steadily rises from 234,181 million US$ in 2020 to 497,599 million US$ in 2025. This highlights a general strengthening and expansion of the company's total financial resources when considering all adjustments.

Overall, the data indicates a strategy emphasizing growth in equity and total capital over the period, with debt levels initially reduced and then increased notably in the final years. Such movements could relate to strategic investments or financing shifts. The adjusted figures suggest a more comprehensive view of liabilities and equity, reinforcing the observed expansion in capital resources.

Revenue Growth

Revenue has shown a consistent upward trend over the six-year period, increasing from 143,015 million US dollars in June 2020 to 281,724 million US dollars in June 2025.

This represents a compound growth trajectory reflecting a robust expansion in business activities.

Adjusted Revenue

Adjusted revenue follows a similar pattern, starting at 144,989 million US dollars in June 2020 and rising steadily to 288,805 million US dollars by June 2025.

The adjusted revenue figures are consistently slightly higher than the reported revenue, suggesting adjustments may account for non-recurring elements or accounting treatments that increase net recognized revenue.

Trend Analysis

Both revenue and adjusted revenue have maintained an increasing trend year-over-year without any indication of decline or stagnation.

The growth appears to accelerate noticeably in later periods, particularly from 2023 onwards, where the yearly increments become larger.

Implications

The continuous growth in revenue and adjusted revenue may indicate effective market strategies, expanding product demand, or successful operational execution.

The upward adjustment consistently applied to revenue could also mean the company effectively manages extraordinary items or adjustments that smooth earnings over time.

The financial data over the analyzed periods reveals several noteworthy trends regarding net income and adjusted net income.

Net Income

Net income exhibits a consistent upward trajectory from June 30, 2020, through June 30, 2025. Starting at 44,281 million US dollars in 2020, it rises significantly by 38% to 61,271 million in 2021, and continues to increase, reaching 72,738 million in 2022. Although there is a marginal dip between 2022 and 2023 (from 72,738 million to 72,361 million), growth resumes thereafter, with net income increasing to 88,136 million in 2024 and further to 101,832 million in 2025. Overall, this long-term upward trend suggests robust profitability and effective income generation.

Adjusted Net Income

Adjusted net income also generally trends upward, beginning at 50,166 million US dollars in 2020. It rises to 64,671 million in 2021 but remains relatively flat in 2022 at 64,685 million. Growth resumes with an increase to 70,059 million in 2023, followed by marked growth in 2024 to 90,702 million. The upward trajectory continues into 2025, where adjusted net income reaches 104,214 million. This pattern reflects a somewhat more volatile but overall strong growth in income after adjustments, indicating stable core earnings with some fluctuations due to non-recurring items or other adjustments.

Comparative Insights

Throughout the period, adjusted net income is consistently higher than net income, highlighting the impact of adjustments that increase reported earnings. Both measures show strong growth, with adjusted net income demonstrating sharper increases in the latter years. The temporary plateau in adjusted net income from 2021 to 2022 contrasts with the steady net income rise, suggesting possible adjustments that may have affected the reported earnings. The slight dip in net income in 2023 is not reflected in the adjusted figure, which instead increases, implying that the adjustments helped offset some of the underlying income fluctuations during that year.

Overall Assessment

The data reflects solid profitability growth and effective management of earnings over the span of five years. The increasing adjusted net income suggests that core business activities are strong, supporting future financial stability. While minor fluctuations in net income exist, the general trend underscores sustained financial robustness.