Stock Analysis on Net
Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

$24.99

Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data

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.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Microsoft Corp., consolidated balance sheet: liabilities and stockholders’ equity (quarterly data)

US$ in millions

Microsoft Excel
Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Accounts payable
Short-term debt
Current portion of long-term debt
Accrued compensation
Short-term income taxes
Short-term unearned revenue
Other current liabilities
Current liabilities
Long-term debt, excluding current portion
Long-term income taxes
Long-term unearned revenue
Deferred income taxes
Long-term operating lease liabilities
Other long-term liabilities
Long-term liabilities
Total liabilities
Common stock and paid-in capital
Retained earnings
Accumulated other comprehensive income (loss)
Stockholders’ equity
Total liabilities and stockholders’ equity

Based on: 10-Q (reporting date: 2026-03-31), 10-Q (reporting date: 2025-12-31), 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).

The balance sheet exhibits a substantial expansion in total liabilities and stockholders' equity, growing from 278,955 million USD in September 2019 to 694,228 million USD by March 2026. This growth is characterized by a strategic shift in the capital structure, moving from a reliance on long-term debt toward a dominant equity base fueled by retained earnings.

Current Liabilities and Working Capital Trends
Current liabilities have more than doubled over the analyzed period, rising from 58,118 million USD to 136,661 million USD. A primary driver of this increase is short-term unearned revenue, which reached a peak of 64,555 million USD in June 2025, suggesting strong growth in deferred revenue streams and prepayment models. Accounts payable also showed a consistent upward trajectory, increasing from 8,574 million USD in September 2019 to 37,513 million USD by March 2026, reflecting an increase in operational scale.
Long-Term Liability Composition
A significant divergence is observed within long-term liabilities. Long-term debt, excluding the current portion, decreased steadily from 66,478 million USD in September 2019 to 31,423 million USD in March 2026, indicating a concerted effort to reduce long-term borrowing. Conversely, other long-term liabilities experienced aggressive growth, escalating from 8,826 million USD to 61,481 million USD over the same period, becoming a more prominent component of the long-term obligations profile.
Stockholders' Equity and Retained Earnings
Stockholders' equity has grown exponentially, increasing from 106,061 million USD in September 2019 to 414,367 million USD in March 2026. The most significant contributor to this growth is retained earnings, which surged from 27,240 million USD to 302,526 million USD. This trend indicates exceptionally strong internal capital generation and a preference for reinvesting profits into the company rather than distributing all earnings to shareholders.
Overall Solvency and Capital Structure Analysis
The relationship between total liabilities and stockholders' equity has shifted in favor of equity. While total liabilities increased from 172,894 million USD to 279,861 million USD, the growth rate of equity far outpaced that of liabilities. This results in a significantly strengthened solvency position, as the company has reduced its long-term debt while simultaneously building a massive equity cushion through accumulated profits.