Debt to Equity
since 2005
Calculation
Microsoft Corp., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt and finance lease liabilities1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|
| Jun 30, 2025 | 0.26 | = | 89,323) | ÷ | 343,479) |
| Jun 30, 2024 | 0.29 | = | 78,775) | ÷ | 268,477) |
| Jun 30, 2023 | 0.31 | = | 64,304) | ÷ | 206,223) |
| Jun 30, 2022 | 0.39 | = | 64,683) | ÷ | 166,542) |
| Jun 30, 2021 | 0.50 | = | 70,687) | ÷ | 141,988) |
| Jun 30, 2020 | 0.62 | = | 72,823) | ÷ | 118,304) |
| Jun 30, 2019 | 0.77 | = | 78,752) | ÷ | 102,330) |
| Jun 30, 2018 | 0.97 | = | 80,541) | ÷ | 82,718) |
| Jun 30, 2017 | 1.23 | = | 88,732) | ÷ | 72,394) |
| Jun 30, 2016 | 0.76 | = | 54,473) | ÷ | 71,997) |
| Jun 30, 2015 | 0.44 | = | 35,292) | ÷ | 80,083) |
| Jun 30, 2014 | 0.25 | = | 22,645) | ÷ | 89,784) |
| Jun 30, 2013 | 0.20 | = | 15,600) | ÷ | 78,944) |
| Jun 30, 2012 | 0.18 | = | 11,944) | ÷ | 66,363) |
| Jun 30, 2011 | 0.21 | = | 11,921) | ÷ | 57,083) |
| Jun 30, 2010 | 0.13 | = | 5,939) | ÷ | 46,175) |
| Jun 30, 2009 | 0.15 | = | 5,746) | ÷ | 39,558) |
| Jun 30, 2008 | 0.00 | = | —) | ÷ | 36,286) |
| Jun 30, 2007 | 0.00 | = | —) | ÷ | 31,097) |
| Jun 30, 2006 | 0.00 | = | —) | ÷ | 40,104) |
| Jun 30, 2005 | 0.00 | = | —) | ÷ | 48,115) |
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), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
1 US$ in millions
- Total debt and finance lease liabilities
- From 2005 to 2009, data is missing. Starting in 2010, total debt shows an initial stable period around 5,746 to 5,939 million US dollars, followed by a sharp increase to 11,921 and maintaining near that level through 2012. Between 2013 and 2015, debt rises significantly from 15,600 million to 35,292 million, progressing further to a peak of 88,732 million in 2017. Subsequently, debt declines to 70,687 million by 2019, then gradually decreases through 2022 to 64,304 million before increasing again in 2024 and 2025 to 78,775 and 89,323 million respectively. Overall, debt exhibits substantial volatility with large increases peaking in the mid-2010s and a moderate rebound in recent years.
- Stockholders’ equity
- Equity starts at 48,115 million in 2005 and declines steadily until 2007 reaching 31,097 million, then reverses trajectory. From 2008 onwards, equity shows consistent growth, rising from 36,286 million to 82,718 million by 2018. This upward trend continues significantly, more than doubling from 102,330 million in 2019 to 343,479 million in 2025. The data indicates strong and sustained growth in equity, especially pronounced in the latter years, reflecting increasing net asset value and possible retained earnings accumulation or capital injections.
- Debt to equity ratio
- Data is absent before 2010. In 2010, the ratio is relatively low at 0.15, then briefly declines and rises again to a high of 1.23 in 2015, indicating that debt exceeded equity at that time. Following 2015, the ratio decreases steadily to 0.26 by 2025, reflecting a significant reduction in leverage relative to equity over the last decade. This downward trend suggests improved financial stability and a strategic move towards lowering financial risk by reducing reliance on debt financing compared to equity.
Comparison to Competitors
Microsoft Corp., debt to equity, long-term trends, comparison to competitors
| Microsoft Corp. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | Fair Isaac Corp. | International Business Machines Corp. | Intuit Inc. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jun 30, 2025 | 0.26 | — | — | — | 0.23 | — | — | — | — | 4.53 | — | — | 0.15 | — | — | 0.33 |
| Jun 30, 2024 | 0.29 | 0.04 | 0.40 | 0.53 | 0.32 | 0.59 | — | 2.01 | 0.33 | 9.98 | 0.00 | 0.19 | 0.17 | 0.15 | 0.00 | 0.37 |
| Jun 30, 2023 | 0.31 | 0.01 | 0.22 | 0.19 | 0.51 | 0.37 | — | 2.51 | 0.35 | 84.33 | 0.00 | 1.14 | 0.20 | 0.20 | 0.00 | 0.53 |
| Jun 30, 2022 | 0.39 | 0.00 | 0.29 | 0.27 | 0.72 | 0.52 | — | 2.32 | 0.42 | — | 0.00 | 17.51 | 0.19 | 0.30 | 0.00 | 0.41 |
| Jun 30, 2021 | 0.50 | 0.00 | 0.28 | 0.13 | 0.85 | 0.71 | — | 2.74 | 0.21 | 16.08 | 0.00 | 5.08 | 0.07 | 0.43 | 0.02 | 0.55 |
| Jun 30, 2020 | 0.62 | 0.00 | 0.31 | 0.14 | 0.00 | 0.60 | 2.52 | 2.99 | 0.66 | 5.93 | 0.13 | 2.80 | 0.09 | 0.58 | 0.03 | 0.51 |
| Jun 30, 2019 | 0.77 | 0.00 | 0.39 | 0.16 | — | 0.00 | 2.85 | 3.02 | 0.12 | 2.58 | — | 0.90 | 0.22 | 0.33 | 0.03 | 0.62 |
| Jun 30, 2018 | 0.97 | 0.00 | 0.44 | 0.35 | — | — | 2.90 | 2.73 | 0.19 | 1.33 | — | 1.99 | 0.21 | 0.60 | 0.13 | 0.94 |
| Jun 30, 2017 | 1.23 | 0.00 | 0.22 | 0.74 | — | — | 1.42 | 2.66 | 0.36 | 1.08 | — | 0.69 | 0.32 | 2.01 | 0.04 | 0.46 |
| Jun 30, 2016 | 0.76 | 0.00 | 0.26 | 0.93 | — | — | 1.28 | 2.31 | 0.86 | 0.93 | — | 0.64 | 0.36 | 1.31 | 0.06 | 0.45 |
| Jun 30, 2015 | 0.44 | 0.00 | 0.27 | 0.25 | — | — | 1.39 | 2.80 | 0.21 | 0.86 | — | 1.00 | 0.49 | 0.84 | 0.07 | 0.44 |
| Jun 30, 2014 | 0.25 | 0.00 | 0.22 | 0.52 | — | — | 1.20 | 3.44 | 0.16 | 0.52 | — | 1.00 | 0.79 | 1.04 | 0.02 | 0.41 |
| Jun 30, 2013 | 0.20 | 0.01 | 0.23 | 0.28 | — | — | 0.89 | 1.74 | 0.14 | 0.41 | — | 0.00 | 0.25 | 1.05 | 0.04 | 0.04 |
| Jun 30, 2012 | 0.18 | 0.00 | 0.23 | 0.49 | — | — | 1.06 | 1.76 | 0.18 | 0.38 | — | 0.00 | 0.35 | 0.00 | 0.05 | — |
| Jun 30, 2011 | 0.21 | 0.00 | 0.26 | 1.04 | — | — | 1.10 | 1.56 | 0.38 | 0.40 | — | — | 0.38 | — | 0.00 | — |
| Jun 30, 2010 | 0.13 | 0.00 | 0.29 | 1.99 | — | — | 1.09 | 1.24 | 0.35 | 0.48 | — | — | 0.45 | — | 0.00 | — |
| Jun 30, 2009 | 0.15 | 0.00 | 0.20 | 4.02 | — | — | 0.95 | 1.15 | 0.39 | 0.41 | — | — | 0.01 | — | 0.00 | — |
| Jun 30, 2008 | 0.00 | 0.00 | 0.08 | 4.91 | — | — | 1.01 | 2.52 | 0.48 | 0.49 | — | — | 0.00 | — | 0.00 | — |
| Jun 30, 2007 | 0.00 | 0.01 | 0.00 | 0.35 | — | — | 0.99 | 1.24 | 0.49 | 0.45 | — | — | 0.00 | — | 0.00 | — |
| Jun 30, 2006 | 0.00 | 0.03 | 0.00 | 0.45 | — | — | 0.52 | 0.80 | 0.00 | 0.39 | — | — | 0.00 | — | 0.00 | — |
| Jun 30, 2005 | 0.00 | 0.04 | 0.00 | 0.31 | — | — | 0.50 | 0.68 | 0.00 | 0.26 | — | — | 0.01 | — | 0.00 | — |
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), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Sector (Software & Services)
Microsoft Corp., debt to equity, long-term trends, comparison to sector (software & services)
| Microsoft Corp. | Software & Services | |
|---|---|---|
| Jun 30, 2025 | 0.26 | — |
| Jun 30, 2024 | 0.29 | 0.54 |
| Jun 30, 2023 | 0.31 | 0.64 |
| Jun 30, 2022 | 0.39 | 0.71 |
| Jun 30, 2021 | 0.50 | 0.83 |
| Jun 30, 2020 | 0.62 | 0.95 |
| Jun 30, 2019 | 0.77 | 1.04 |
| Jun 30, 2018 | 0.97 | 1.08 |
| Jun 30, 2017 | 1.23 | 1.14 |
| Jun 30, 2016 | 0.76 | 0.90 |
| Jun 30, 2015 | 0.44 | 0.73 |
| Jun 30, 2014 | 0.25 | 0.54 |
| Jun 30, 2013 | 0.20 | 0.46 |
| Jun 30, 2012 | 0.18 | 0.44 |
| Jun 30, 2011 | 0.21 | 0.47 |
| Jun 30, 2010 | 0.13 | 0.46 |
| Jun 30, 2009 | 0.15 | 0.45 |
| Jun 30, 2008 | 0.00 | 0.56 |
| Jun 30, 2007 | 0.00 | 0.50 |
| Jun 30, 2006 | 0.00 | 0.31 |
| Jun 30, 2005 | 0.00 | 0.26 |
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), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Industry (Information Technology)
Microsoft Corp., debt to equity, long-term trends, comparison to industry (information technology)
| Microsoft Corp. | Information Technology | |
|---|---|---|
| Jun 30, 2025 | 0.26 | — |
| Jun 30, 2024 | 0.29 | 0.61 |
| Jun 30, 2023 | 0.31 | 0.66 |
| Jun 30, 2022 | 0.39 | 0.70 |
| Jun 30, 2021 | 0.50 | 0.83 |
| Jun 30, 2020 | 0.62 | 0.97 |
| Jun 30, 2019 | 0.77 | 0.98 |
| Jun 30, 2018 | 0.97 | 0.83 |
| Jun 30, 2017 | 1.23 | 0.81 |
| Jun 30, 2016 | 0.76 | 0.66 |
| Jun 30, 2015 | 0.44 | 0.56 |
| Jun 30, 2014 | 0.25 | 0.39 |
| Jun 30, 2013 | 0.20 | 0.29 |
| Jun 30, 2012 | 0.18 | 0.25 |
| Jun 30, 2011 | 0.21 | 0.27 |
| Jun 30, 2010 | 0.13 | 0.25 |
| Jun 30, 2009 | 0.15 | 0.26 |
| Jun 30, 2008 | 0.00 | 0.29 |
| Jun 30, 2007 | 0.00 | 0.27 |
| Jun 30, 2006 | 0.00 | 0.20 |
| Jun 30, 2005 | 0.00 | 0.15 |
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), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).