Balance Sheet: Assets

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Microsoft Corp., consolidated balance sheet: assets

US$ in millions

	Jun 30, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash and cash equivalents	20,935)	30,242)	18,315)	34,704)	13,931)	14,224)
Short-term investments	55,908)	64,323)	57,228)	76,558)	90,826)	116,110)
Cash, cash equivalents, and short-term investments	76,843)	94,565)	75,543)	111,262)	104,757)	130,334)
Accounts receivable, net of allowance for doubtful accounts	80,876)	69,905)	56,924)	48,688)	44,261)	38,043)
Inventories	1,397)	938)	1,246)	2,500)	3,742)	2,636)
Other current assets	48,594)	25,723)	26,021)	21,807)	16,924)	13,393)
Current assets	207,710)	191,131)	159,734)	184,257)	169,684)	184,406)
Property and equipment, net of accumulated depreciation	313,076)	204,966)	135,591)	95,641)	74,398)	59,715)
Operating lease right-of-use assets	24,177)	24,823)	18,961)	14,346)	13,148)	11,088)
Equity and other investments	36,348)	15,405)	14,600)	9,879)	6,891)	5,984)
Goodwill	119,651)	119,509)	119,220)	67,886)	67,524)	49,711)
Intangible assets, net	18,609)	22,604)	27,597)	9,366)	11,298)	7,800)
Other long-term assets	38,805)	40,565)	36,460)	30,601)	21,897)	15,075)
Long-term assets	550,666)	427,872)	352,429)	227,719)	195,156)	149,373)
Total assets	758,376)	619,003)	512,163)	411,976)	364,840)	333,779)

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).

Total assets demonstrate a sustained and significant growth trajectory, increasing from 333,779 million USD in June 2021 to 758,376 million USD by June 2026. This expansion is primarily driven by a strategic shift in the asset composition, moving from a heavy reliance on liquid current assets toward substantial long-term capital investments.

Liquidity and Cash Management: A contraction in highly liquid assets is observed between 2021 and 2024. Cash, cash equivalents, and short-term investments declined from a peak of 130,334 million USD in 2021 to 75,543 million USD in 2024. While there is a subsequent recovery to 94,565 million USD in 2025, the overall trend suggests a reallocation of capital from cash reserves into productive long-term assets.
Fixed Asset Expansion: The most prominent growth is identified in property and equipment, net of accumulated depreciation, which rose exponentially from 59,715 million USD in 2021 to 313,076 million USD in 2026. This represents the primary driver of the total asset increase and indicates aggressive investment in physical infrastructure.
Intangible Assets and Acquisitions: A significant increase in goodwill is noted between June 2023 and June 2024, where values rose from 67,886 million USD to 119,220 million USD. This sharp uptick, combined with a simultaneous increase in intangible assets, suggests substantial acquisition activity during this period.
Working Capital Trends: Accounts receivable have shown consistent year-over-year growth, increasing from 38,043 million USD in 2021 to 80,876 million USD in 2026. This steady rise indicates an expansion in credit sales and overall revenue growth. Conversely, inventories have remained relatively low and volatile, trending downward from 2,636 million USD in 2021 to 1,397 million USD in 2026.
Long-term Asset Composition: Long-term assets grew from 149,373 million USD in 2021 to 550,666 million USD in 2026. The composition of these assets shifted heavily toward property and equipment, which now constitutes the vast majority of the long-term asset base, overshadowing operating lease right-of-use assets and other long-term investments.

In summary, the balance sheet reflects a transition from a liquidity-heavy position to an infrastructure-heavy position. The rapid escalation of fixed assets and the spike in goodwill indicate a period of intense capital expenditure and strategic acquisitions aimed at expanding operational capacity.

Microsoft Corp. (NASDAQ:MSFT)

Balance Sheet: Assets

Assets: Selected Items

Current Assets: Selected Items