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, 2026 | 0.24 | = | 106,888) | ÷ | 442,387) |
| 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: 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), 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
An analysis of the financial structure between 2005 and 2026 reveals a cyclical trend in leverage, characterized by a period of aggressive debt accumulation followed by a sustained phase of equity-driven deleveraging.
- Initial Stability and Moderate Leverage (2009–2013)
- During this period, the debt to equity ratio remained relatively low and stable, fluctuating between 0.13 and 0.25. Total debt and finance lease liabilities grew modestly from US$ 5,746 million in 2009 to US$ 15,600 million in 2013, while stockholders' equity saw a steady increase from US$ 39,558 million to US$ 78,944 million.
- Leverage Expansion Phase (2014–2017)
- A significant shift occurred starting in 2014, marked by a rapid increase in both total debt and the resulting debt to equity ratio. The ratio climbed from 0.25 in 2014 to a peak of 1.23 in 2017. This spike was driven by a substantial rise in total debt and finance lease liabilities, which surged from US$ 22,645 million in 2014 to US$ 88,732 million in 2017, outpacing the growth of stockholders' equity during the same interval.
- Sustained Deleveraging and Equity Growth (2018–2026)
- From 2018 onward, a consistent downward trend in the debt to equity ratio is observed, falling from 0.97 to a projected 0.24 by 2026. This trend is primarily attributed to the exponential growth of stockholders' equity, which rose from US$ 82,718 million in 2018 to a projected US$ 442,387 million by 2026. Although total debt increased again in the latter years, reaching a projected US$ 106,888 million, the rate of equity accumulation far exceeded the rate of debt growth, leading to a strengthened solvency position.
The long-term trajectory indicates a transition toward a more equity-heavy capital structure. The substantial expansion of the equity base has effectively mitigated the impact of increased nominal debt, resulting in a debt to equity ratio in 2026 that is comparable to the levels observed over a decade prior.
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Comparison to Competitors
Microsoft Corp., debt to equity, long-term trends, comparison to competitors
| Microsoft Corp. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | 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, 2026 | 0.24 | — | — | — | — | — | — | 0.40 | 3.05 | — | 0.06 | 0.25 | — | — | 0.38 |
| Jun 30, 2025 | 0.26 | 0.17 | 0.53 | 1.65 | 0.45 | 0.26 | 1.88 | 0.30 | 4.53 | 0.00 | 0.00 | 0.15 | 0.12 | 0.48 | 0.33 |
| Jun 30, 2024 | 0.29 | 0.04 | 0.40 | 3.22 | 0.53 | 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 | 2.48 | 0.19 | 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 | 1.69 | 0.27 | 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 | 1.51 | 0.13 | 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 | 0.60 | 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 | 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 | — | 2.73 | 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 | — | 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 | — | 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 | — | 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 | — | 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 | — | 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 | — | 1.76 | 0.18 | 0.38 | — | 0.00 | 0.35 | 0.00 | 0.05 | — |
| Jun 30, 2011 | 0.21 | 0.00 | 0.26 | — | 1.04 | — | 1.56 | 0.38 | 0.40 | — | — | 0.38 | — | 0.00 | — |
| Jun 30, 2010 | 0.13 | 0.00 | 0.29 | — | 1.99 | — | 1.24 | 0.35 | 0.48 | — | — | 0.45 | — | 0.00 | — |
| Jun 30, 2009 | 0.15 | 0.00 | 0.20 | — | 4.02 | — | 1.15 | 0.39 | 0.41 | — | — | 0.01 | — | 0.00 | — |
| Jun 30, 2008 | 0.00 | 0.00 | 0.08 | — | 4.91 | — | 2.52 | 0.48 | 0.49 | — | — | 0.00 | — | 0.00 | — |
| Jun 30, 2007 | 0.00 | 0.01 | 0.00 | — | 0.35 | — | 1.24 | 0.49 | 0.45 | — | — | 0.00 | — | 0.00 | — |
| Jun 30, 2006 | 0.00 | 0.03 | 0.00 | — | 0.45 | — | 0.80 | 0.00 | 0.39 | — | — | 0.00 | — | 0.00 | — |
| Jun 30, 2005 | 0.00 | 0.04 | 0.00 | — | 0.31 | — | 0.68 | 0.00 | 0.26 | — | — | 0.01 | — | 0.00 | — |
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), 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, 2026 | 0.24 | — |
| Jun 30, 2025 | 0.26 | 0.49 |
| Jun 30, 2024 | 0.29 | 0.55 |
| 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 | 1.07 |
| 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 | 0.44 |
| 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: 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), 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, 2026 | 0.24 | — |
| Jun 30, 2025 | 0.26 | 0.52 |
| Jun 30, 2024 | 0.29 | 0.61 |
| Jun 30, 2023 | 0.31 | 0.65 |
| Jun 30, 2022 | 0.39 | 0.70 |
| Jun 30, 2021 | 0.50 | 0.82 |
| Jun 30, 2020 | 0.62 | 0.95 |
| Jun 30, 2019 | 0.77 | 0.97 |
| Jun 30, 2018 | 0.97 | 0.82 |
| Jun 30, 2017 | 1.23 | 0.80 |
| Jun 30, 2016 | 0.76 | 0.65 |
| Jun 30, 2015 | 0.44 | 0.56 |
| Jun 30, 2014 | 0.25 | 0.38 |
| Jun 30, 2013 | 0.20 | 0.28 |
| Jun 30, 2012 | 0.18 | 0.24 |
| Jun 30, 2011 | 0.21 | 0.27 |
| Jun 30, 2010 | 0.13 | 0.24 |
| Jun 30, 2009 | 0.15 | 0.25 |
| Jun 30, 2008 | 0.00 | 0.28 |
| Jun 30, 2007 | 0.00 | 0.26 |
| Jun 30, 2006 | 0.00 | 0.19 |
| Jun 30, 2005 | 0.00 | 0.15 |
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), 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).