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Microsoft Corp. (MSFT)
Long-term Debt and Solvency Analysis
Difficulty: Beginner
Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.
Ratios (Summary)
Microsoft Corp., debt and solvency ratios
Based on: 10-K (filing date: 2019-08-01), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31), 10-K (filing date: 2014-07-31).
| Ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Microsoft Corp.’s debt to equity ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Debt to equity (including operating lease liability) ratio | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Microsoft Corp.’s debt to equity (including operating lease liability) ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Microsoft Corp.’s debt to capital ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Debt to capital (including operating lease liability) ratio | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Microsoft Corp.’s debt to capital (including operating lease liability) ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Microsoft Corp.’s debt to assets ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Debt to assets (including operating lease liability) ratio | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Microsoft Corp.’s debt to assets (including operating lease liability) ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Microsoft Corp.’s financial leverage ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Microsoft Corp.’s interest coverage ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Microsoft Corp.’s fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019. |
Debt to Equity
Microsoft Corp., debt to equity calculation, comparison to benchmarks
| Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| Short-term debt | |
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| Current portion of long-term debt | |
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| Long-term debt, excluding current portion | |
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| Total debt | |
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| Stockholders’ equity | |
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| Ratio | |||||||
| Debt to equity1 | |
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| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Adobe Inc. | |
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| Alphabet Inc. | |
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| Facebook Inc. | |
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| International Business Machines Corp. | |
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| Intuit Inc. | |
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| Oracle Corp. | |
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| salesforce.com inc. | |
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| Debt to Equity, Sector | |||||||
| Software & Computer Services | |
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| Debt to Equity, Industry | |||||||
| Technology | |
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Based on: 10-K (filing date: 2019-08-01), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31), 10-K (filing date: 2014-07-31).
1 2019 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Microsoft Corp.’s debt to equity ratio improved from 2017 to 2018 and from 2018 to 2019. |
Debt to Equity (including Operating Lease Liability)
Microsoft Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
Based on: 10-K (filing date: 2019-08-01), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31), 10-K (filing date: 2014-07-31).
1 2019 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Debt to equity (including operating lease liability) ratio | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Microsoft Corp.’s debt to equity (including operating lease liability) ratio improved from 2017 to 2018 and from 2018 to 2019. |
Debt to Capital
Microsoft Corp., debt to capital calculation, comparison to benchmarks
| Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| Short-term debt | |
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| Current portion of long-term debt | |
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| Long-term debt, excluding current portion | |
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| Total debt | |
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| Stockholders’ equity | |
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| Total capital | |
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| Ratio | |||||||
| Debt to capital1 | |
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| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Adobe Inc. | |
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| Alphabet Inc. | |
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| Facebook Inc. | |
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| International Business Machines Corp. | |
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| Intuit Inc. | |
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| Oracle Corp. | |
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| salesforce.com inc. | |
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| Debt to Capital, Sector | |||||||
| Software & Computer Services | |
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| Debt to Capital, Industry | |||||||
| Technology | |
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Based on: 10-K (filing date: 2019-08-01), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31), 10-K (filing date: 2014-07-31).
1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Microsoft Corp.’s debt to capital ratio improved from 2017 to 2018 and from 2018 to 2019. |
Debt to Capital (including Operating Lease Liability)
Microsoft Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
Based on: 10-K (filing date: 2019-08-01), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31), 10-K (filing date: 2014-07-31).
1 2019 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Debt to capital (including operating lease liability) ratio | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Microsoft Corp.’s debt to capital (including operating lease liability) ratio improved from 2017 to 2018 and from 2018 to 2019. |
Debt to Assets
Microsoft Corp., debt to assets calculation, comparison to benchmarks
| Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| Short-term debt | |
|
|
|
|
|
|
| Current portion of long-term debt | |
|
|
|
|
|
|
| Long-term debt, excluding current portion | |
|
|
|
|
|
|
| Total debt | |
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| Total assets | |
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| Ratio | |||||||
| Debt to assets1 | |
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|
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| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Adobe Inc. | |
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|
|
|
|
| Alphabet Inc. | |
|
|
|
|
|
|
| Facebook Inc. | |
|
|
|
|
|
|
| International Business Machines Corp. | |
|
|
|
|
|
|
| Intuit Inc. | |
|
|
|
|
|
|
| Oracle Corp. | |
|
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|
|
|
|
| salesforce.com inc. | |
|
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|
|
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| Debt to Assets, Sector | |||||||
| Software & Computer Services | |
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| Debt to Assets, Industry | |||||||
| Technology | |
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Based on: 10-K (filing date: 2019-08-01), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31), 10-K (filing date: 2014-07-31).
1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Microsoft Corp.’s debt to assets ratio improved from 2017 to 2018 and from 2018 to 2019. |
Debt to Assets (including Operating Lease Liability)
Microsoft Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
Based on: 10-K (filing date: 2019-08-01), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31), 10-K (filing date: 2014-07-31).
1 2019 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Debt to assets (including operating lease liability) ratio | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Microsoft Corp.’s debt to assets (including operating lease liability) ratio improved from 2017 to 2018 and from 2018 to 2019. |
Financial Leverage
Microsoft Corp., financial leverage calculation, comparison to benchmarks
| Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| Total assets | |
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| Stockholders’ equity | |
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| Ratio | |||||||
| Financial leverage1 | |
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| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Adobe Inc. | |
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| Alphabet Inc. | |
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|
|
|
| Facebook Inc. | |
|
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|
|
|
|
| International Business Machines Corp. | |
|
|
|
|
|
|
| Intuit Inc. | |
|
|
|
|
|
|
| Oracle Corp. | |
|
|
|
|
|
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| salesforce.com inc. | |
|
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|
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| Financial Leverage, Sector | |||||||
| Software & Computer Services | |
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| Financial Leverage, Industry | |||||||
| Technology | |
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Based on: 10-K (filing date: 2019-08-01), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31), 10-K (filing date: 2014-07-31).
1 2019 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Microsoft Corp.’s financial leverage ratio improved from 2017 to 2018 and from 2018 to 2019. |
Interest Coverage
Microsoft Corp., interest coverage calculation, comparison to benchmarks
| Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| Net income | |
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| Add: Income tax expense | |
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| Add: Interest expense | |
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| Earnings before interest and tax (EBIT) | |
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| Ratio | |||||||
| Interest coverage1 | |
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| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Adobe Inc. | |
|
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|
|
|
|
| Alphabet Inc. | |
|
|
|
|
|
|
| Facebook Inc. | |
|
|
|
|
|
|
| International Business Machines Corp. | |
|
|
|
|
|
|
| Intuit Inc. | |
|
|
|
|
|
|
| Oracle Corp. | |
|
|
|
|
|
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| salesforce.com inc. | |
|
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|
|
|
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| Interest Coverage, Sector | |||||||
| Software & Computer Services | |
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| Interest Coverage, Industry | |||||||
| Technology | |
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Based on: 10-K (filing date: 2019-08-01), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31), 10-K (filing date: 2014-07-31).
1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Microsoft Corp.’s interest coverage ratio improved from 2017 to 2018 and from 2018 to 2019. |
Fixed Charge Coverage
Microsoft Corp., fixed charge coverage calculation, comparison to benchmarks
| Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| Net income | |
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| Add: Income tax expense | |
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| Add: Interest expense | |
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| Earnings before interest and tax (EBIT) | |
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| Add: Operating lease cost | |
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| Earnings before fixed charges and tax | |
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| Interest expense | |
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| Operating lease cost | |
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| Fixed charges | |
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| Ratio | |||||||
| Fixed charge coverage1 | |
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| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Adobe Inc. | |
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|
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| Alphabet Inc. | |
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|
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| Facebook Inc. | |
|
|
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|
|
|
| International Business Machines Corp. | |
|
|
|
|
|
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| Intuit Inc. | |
|
|
|
|
|
|
| Oracle Corp. | |
|
|
|
|
|
|
| salesforce.com inc. | |
|
|
|
|
|
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| Fixed Charge Coverage, Sector | |||||||
| Software & Computer Services | |
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| Fixed Charge Coverage, Industry | |||||||
| Technology | |
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Based on: 10-K (filing date: 2019-08-01), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31), 10-K (filing date: 2014-07-31).
1 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Microsoft Corp.’s fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019. |