Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

Analysis of Solvency Ratios

Microsoft Excel LibreOffice Calc

Solvency Ratios (Summary)

Microsoft Corp., solvency ratios

Microsoft Excel LibreOffice Calc
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Debt Ratios
Debt to equity 0.50 0.62 0.77 0.97 1.23 0.76
Debt to equity (including operating lease liability) 0.58 0.69 0.84 1.06 1.23 0.76
Debt to capital 0.33 0.38 0.43 0.49 0.55 0.43
Debt to capital (including operating lease liability) 0.37 0.41 0.46 0.51 0.55 0.43
Debt to assets 0.21 0.24 0.27 0.31 0.37 0.28
Debt to assets (including operating lease liability) 0.25 0.27 0.30 0.34 0.37 0.28
Financial leverage 2.35 2.55 2.80 3.13 3.33 2.69
Coverage Ratios
Interest coverage 31.31 21.47 17.27 14.35 11.42 16.89
Fixed charge coverage 16.90 12.44 10.94 9.45 7.57 9.81

Based on: 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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Microsoft Corp. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Microsoft Corp. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Microsoft Corp. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Microsoft Corp. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Microsoft Corp. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Microsoft Corp. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Microsoft Corp. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Microsoft Corp. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Microsoft Corp. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Equity

Microsoft Corp., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in millions)
Short-term debt —  —  —  —  9,072  12,904 
Current portion of long-term debt 8,072  3,749  5,516  3,998  1,049  — 
Current finance lease liabilities 791  540  317  176  113  25 
Long-term debt, excluding current portion 50,074  59,578  66,662  72,242  76,073  40,783 
Long-term finance lease liabilities 11,750  8,956  6,257  4,125  2,425  761 
Total debt 70,687  72,823  78,752  80,541  88,732  54,473 
 
Stockholders’ equity 141,988  118,304  102,330  82,718  72,394  71,997 
Solvency Ratio
Debt to equity1 0.50 0.62 0.77 0.97 1.23 0.76
Benchmarks
Debt to Equity, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00 0.00 0.00
Adobe Inc. 0.31 0.39 0.44 0.22 0.26
Autodesk Inc. 1.70 2.03 0.92
Automatic Data Processing Inc. 0.53 0.35 0.42 0.58 0.50 0.45
Fidelity National Information Services Inc. 0.41 0.41 0.88 0.81 1.08
Fiserv Inc. 0.64 0.66 2.60 1.79 1.80
International Business Machines Corp. 2.99 3.02 2.73 2.66 2.31
Intuit Inc. 0.21 0.66 0.12 0.19 0.36 0.86
Mastercard Inc. 1.98 1.45 1.17 0.99 0.92
Oracle Corp. 16.08 5.93 2.58 1.33 1.08 0.93
PayPal Holdings Inc. 0.45 0.29 0.13 0.06 0.00
salesforce.com inc. 0.07 0.09 0.22 0.21 0.32 0.36
ServiceNow Inc. 0.58 0.33 0.60 2.01 1.31
Visa Inc. 0.56 0.66 0.48 0.49 0.56 0.48
Debt to Equity, Sector
Software & Services 0.83 0.84 0.96 0.99 0.80
Debt to Equity, Industry
Information Technology 0.83 0.81 0.81 0.79 0.65

Based on: 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).

1 2021 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 70,687 ÷ 141,988 = 0.50

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Microsoft Corp. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Equity (including Operating Lease Liability)

Microsoft Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in millions)
Short-term debt —  —  —  —  9,072  12,904 
Current portion of long-term debt 8,072  3,749  5,516  3,998  1,049  — 
Current finance lease liabilities 791  540  317  176  113  25 
Long-term debt, excluding current portion 50,074  59,578  66,662  72,242  76,073  40,783 
Long-term finance lease liabilities 11,750  8,956  6,257  4,125  2,425  761 
Total debt 70,687  72,823  78,752  80,541  88,732  54,473 
Operating lease liabilities (included in Other current liabilities) 1,962  1,616  1,515  1,399  —  — 
Long-term operating lease liabilities 9,629  7,671  6,188  5,568  —  — 
Total debt (including operating lease liability) 82,278  82,110  86,455  87,508  88,732  54,473 
 
Stockholders’ equity 141,988  118,304  102,330  82,718  72,394  71,997 
Solvency Ratio
Debt to equity (including operating lease liability)1 0.58 0.69 0.84 1.06 1.23 0.76
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Accenture PLC 0.18 0.21 0.00 0.00 0.00 0.00
Adobe Inc. 0.35 0.39 0.44 0.22 0.26
Autodesk Inc. 2.18 2.03 0.92
Automatic Data Processing Inc. 0.61 0.43 0.42 0.58 0.50 0.45
Fidelity National Information Services Inc. 0.42 0.42 0.88 0.81 1.08
Fiserv Inc. 0.66 0.69 2.60 1.79 1.80
International Business Machines Corp. 3.23 3.27 2.73 2.66 2.31
Intuit Inc. 0.25 0.71 0.12 0.19 0.36 0.86
Mastercard Inc. 2.12 1.58 1.17 0.99 0.92
Oracle Corp. 16.61 6.10 2.58 1.33 1.08 0.93
PayPal Holdings Inc. 0.49 0.32 0.13 0.06 0.00
salesforce.com inc. 0.15 0.18 0.22 0.21 0.32 0.36
ServiceNow Inc. 0.75 0.53 0.60 2.01 1.31
Visa Inc. 0.57 0.68 0.48 0.49 0.56 0.48
Debt to Equity (including Operating Lease Liability), Sector
Software & Services 0.90 0.89 0.99 0.99 0.80
Debt to Equity (including Operating Lease Liability), Industry
Information Technology 0.90 0.84 0.83 0.79 0.65

Based on: 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).

1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 82,278 ÷ 141,988 = 0.58

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Microsoft Corp. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Capital

Microsoft Corp., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in millions)
Short-term debt —  —  —  —  9,072  12,904 
Current portion of long-term debt 8,072  3,749  5,516  3,998  1,049  — 
Current finance lease liabilities 791  540  317  176  113  25 
Long-term debt, excluding current portion 50,074  59,578  66,662  72,242  76,073  40,783 
Long-term finance lease liabilities 11,750  8,956  6,257  4,125  2,425  761 
Total debt 70,687  72,823  78,752  80,541  88,732  54,473 
Stockholders’ equity 141,988  118,304  102,330  82,718  72,394  71,997 
Total capital 212,675  191,127  181,082  163,259  161,126  126,470 
Solvency Ratio
Debt to capital1 0.33 0.38 0.43 0.49 0.55 0.43
Benchmarks
Debt to Capital, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00 0.00 0.00
Adobe Inc. 0.24 0.28 0.31 0.18 0.20
Autodesk Inc. 0.63 1.07 1.11 1.19 0.67 0.48
Automatic Data Processing Inc. 0.35 0.26 0.30 0.37 0.33 0.31
Fidelity National Information Services Inc. 0.29 0.29 0.47 0.45 0.52
Fiserv Inc. 0.39 0.40 0.72 0.64 0.64
International Business Machines Corp. 0.75 0.75 0.73 0.73 0.70
Intuit Inc. 0.17 0.40 0.10 0.16 0.26 0.46
Mastercard Inc. 0.66 0.59 0.54 0.50 0.48
Oracle Corp. 0.94 0.86 0.72 0.57 0.52 0.48
PayPal Holdings Inc. 0.31 0.23 0.11 0.06 0.00
salesforce.com inc. 0.06 0.08 0.18 0.18 0.24 0.26
ServiceNow Inc. 0.37 0.25 0.37 0.67 0.57
Visa Inc. 0.36 0.40 0.33 0.33 0.36 0.33
Debt to Capital, Sector
Software & Services 0.45 0.46 0.49 0.50 0.45
Debt to Capital, Industry
Information Technology 0.45 0.45 0.45 0.44 0.39

Based on: 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).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 70,687 ÷ 212,675 = 0.33

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Microsoft Corp. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Capital (including Operating Lease Liability)

Microsoft Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in millions)
Short-term debt —  —  —  —  9,072  12,904 
Current portion of long-term debt 8,072  3,749  5,516  3,998  1,049  — 
Current finance lease liabilities 791  540  317  176  113  25 
Long-term debt, excluding current portion 50,074  59,578  66,662  72,242  76,073  40,783 
Long-term finance lease liabilities 11,750  8,956  6,257  4,125  2,425  761 
Total debt 70,687  72,823  78,752  80,541  88,732  54,473 
Operating lease liabilities (included in Other current liabilities) 1,962  1,616  1,515  1,399  —  — 
Long-term operating lease liabilities 9,629  7,671  6,188  5,568  —  — 
Total debt (including operating lease liability) 82,278  82,110  86,455  87,508  88,732  54,473 
Stockholders’ equity 141,988  118,304  102,330  82,718  72,394  71,997 
Total capital (including operating lease liability) 224,266  200,414  188,785  170,226  161,126  126,470 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.37 0.41 0.46 0.51 0.55 0.43
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Accenture PLC 0.15 0.17 0.00 0.00 0.00 0.00
Adobe Inc. 0.26 0.28 0.31 0.18 0.20
Autodesk Inc. 0.69 1.06 1.11 1.19 0.67 0.48
Automatic Data Processing Inc. 0.38 0.30 0.30 0.37 0.33 0.31
Fidelity National Information Services Inc. 0.29 0.30 0.47 0.45 0.52
Fiserv Inc. 0.40 0.41 0.72 0.64 0.64
International Business Machines Corp. 0.76 0.77 0.73 0.73 0.70
Intuit Inc. 0.20 0.42 0.10 0.16 0.26 0.46
Mastercard Inc. 0.68 0.61 0.54 0.50 0.48
Oracle Corp. 0.94 0.86 0.72 0.57 0.52 0.48
PayPal Holdings Inc. 0.33 0.24 0.11 0.06 0.00
salesforce.com inc. 0.13 0.16 0.18 0.18 0.24 0.26
ServiceNow Inc. 0.43 0.35 0.37 0.67 0.57
Visa Inc. 0.36 0.40 0.33 0.33 0.36 0.33
Debt to Capital (including Operating Lease Liability), Sector
Software & Services 0.47 0.47 0.50 0.50 0.45
Debt to Capital (including Operating Lease Liability), Industry
Information Technology 0.47 0.46 0.45 0.44 0.39

Based on: 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).

1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 82,278 ÷ 224,266 = 0.37

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Microsoft Corp. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Assets

Microsoft Corp., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in millions)
Short-term debt —  —  —  —  9,072  12,904 
Current portion of long-term debt 8,072  3,749  5,516  3,998  1,049  — 
Current finance lease liabilities 791  540  317  176  113  25 
Long-term debt, excluding current portion 50,074  59,578  66,662  72,242  76,073  40,783 
Long-term finance lease liabilities 11,750  8,956  6,257  4,125  2,425  761 
Total debt 70,687  72,823  78,752  80,541  88,732  54,473 
 
Total assets 333,779  301,311  286,556  258,848  241,086  193,694 
Solvency Ratio
Debt to assets1 0.21 0.24 0.27 0.31 0.37 0.28
Benchmarks
Debt to Assets, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00 0.00 0.00
Adobe Inc. 0.17 0.20 0.22 0.13 0.15
Autodesk Inc. 0.22 0.34 0.44 0.39 0.31 0.27
Automatic Data Processing Inc. 0.06 0.05 0.05 0.05 0.05 0.05
Fidelity National Information Services Inc. 0.24 0.24 0.38 0.36 0.40
Fiserv Inc. 0.28 0.28 0.53 0.48 0.47
International Business Machines Corp. 0.39 0.41 0.37 0.37 0.36
Intuit Inc. 0.13 0.31 0.07 0.08 0.12 0.24
Mastercard Inc. 0.38 0.29 0.25 0.25 0.28
Oracle Corp. 0.64 0.62 0.52 0.44 0.43 0.39
PayPal Holdings Inc. 0.13 0.10 0.05 0.02 0.00
salesforce.com inc. 0.04 0.06 0.11 0.10 0.14 0.14
ServiceNow Inc. 0.19 0.12 0.17 0.35 0.25
Visa Inc. 0.25 0.30 0.23 0.24 0.27 0.25
Debt to Assets, Sector
Software & Services 0.28 0.28 0.29 0.31 0.27
Debt to Assets, Industry
Information Technology 0.29 0.29 0.29 0.30 0.27

Based on: 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).

1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 70,687 ÷ 333,779 = 0.21

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Microsoft Corp. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Assets (including Operating Lease Liability)

Microsoft Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in millions)
Short-term debt —  —  —  —  9,072  12,904 
Current portion of long-term debt 8,072  3,749  5,516  3,998  1,049  — 
Current finance lease liabilities 791  540  317  176  113  25 
Long-term debt, excluding current portion 50,074  59,578  66,662  72,242  76,073  40,783 
Long-term finance lease liabilities 11,750  8,956  6,257  4,125  2,425  761 
Total debt 70,687  72,823  78,752  80,541  88,732  54,473 
Operating lease liabilities (included in Other current liabilities) 1,962  1,616  1,515  1,399  —  — 
Long-term operating lease liabilities 9,629  7,671  6,188  5,568  —  — 
Total debt (including operating lease liability) 82,278  82,110  86,455  87,508  88,732  54,473 
 
Total assets 333,779  301,311  286,556  258,848  241,086  193,694 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.25 0.27 0.30 0.34 0.37 0.28
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Accenture PLC 0.08 0.09 0.00 0.00 0.00 0.00
Adobe Inc. 0.19 0.20 0.22 0.13 0.15
Autodesk Inc. 0.29 0.41 0.44 0.39 0.31 0.27
Automatic Data Processing Inc. 0.07 0.06 0.05 0.05 0.05 0.05
Fidelity National Information Services Inc. 0.25 0.25 0.38 0.36 0.40
Fiserv Inc. 0.29 0.29 0.53 0.48 0.47
International Business Machines Corp. 0.43 0.45 0.37 0.37 0.36
Intuit Inc. 0.16 0.33 0.07 0.08 0.12 0.24
Mastercard Inc. 0.40 0.32 0.25 0.25 0.28
Oracle Corp. 0.66 0.64 0.52 0.44 0.43 0.39
PayPal Holdings Inc. 0.14 0.11 0.05 0.02 0.00
salesforce.com inc. 0.10 0.11 0.11 0.10 0.14 0.14
ServiceNow Inc. 0.24 0.19 0.17 0.35 0.25
Visa Inc. 0.26 0.30 0.23 0.24 0.27 0.25
Debt to Assets (including Operating Lease Liability), Sector
Software & Services 0.31 0.30 0.30 0.31 0.27
Debt to Assets (including Operating Lease Liability), Industry
Information Technology 0.31 0.30 0.29 0.30 0.27

Based on: 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).

1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 82,278 ÷ 333,779 = 0.25

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Microsoft Corp. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Financial Leverage

Microsoft Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in millions)
Total assets 333,779  301,311  286,556  258,848  241,086  193,694 
Stockholders’ equity 141,988  118,304  102,330  82,718  72,394  71,997 
Solvency Ratio
Financial leverage1 2.35 2.55 2.80 3.13 3.33 2.69
Benchmarks
Financial Leverage, Competitors2
Accenture PLC 2.21 2.18 2.07 2.36 2.54 2.73
Adobe Inc. 1.83 1.97 2.00 1.72 1.71
Autodesk Inc. 7.54 6.54 3.41
Automatic Data Processing Inc. 8.60 6.81 7.76 10.72 9.35 9.74
Fidelity National Information Services Inc. 1.70 1.70 2.33 2.26 2.67
Fiserv Inc. 2.31 2.35 4.91 3.77 3.83
International Business Machines Corp. 7.57 7.30 7.35 7.12 6.44
Intuit Inc. 1.57 2.14 1.68 2.20 3.00 3.66
Mastercard Inc. 5.25 4.96 4.61 3.90 3.30
Oracle Corp. 25.03 9.56 4.99 3.00 2.51 2.37
PayPal Holdings Inc. 3.52 3.04 2.82 2.55 2.25
salesforce.com inc. 1.60 1.63 1.97 2.24 2.34 2.55
ServiceNow Inc. 3.07 2.83 3.49 5.82 5.26
Visa Inc. 2.21 2.23 2.09 2.04 2.08 1.95
Financial Leverage, Sector
Software & Services 2.94 2.98 3.25 3.17 2.93
Financial Leverage, Industry
Information Technology 2.87 2.81 2.83 2.63 2.44

Based on: 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).

1 2021 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 333,779 ÷ 141,988 = 2.35

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Microsoft Corp. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.

Interest Coverage

Microsoft Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in millions)
Net income 61,271  44,281  39,240  16,571  21,204  16,798 
Add: Income tax expense 9,831  8,755  4,448  19,903  1,945  2,953 
Add: Interest expense 2,346  2,591  2,686  2,733  2,222  1,243 
Earnings before interest and tax (EBIT) 73,448  55,627  46,374  39,207  25,371  20,994 
Solvency Ratio
Interest coverage1 31.31 21.47 17.27 14.35 11.42 16.89
Benchmarks
Interest Coverage, Competitors2
Accenture PLC 131.46 205.84 273.26 298.26 297.95 345.67
Adobe Inc. 37.00 21.38 32.31 29.73 21.37
Autodesk Inc. 11.70 6.46 0.18 -15.15 -16.64 0.40
Automatic Data Processing Inc. 57.30 30.72 24.14 22.14 32.64 40.76
Fidelity National Information Services Inc. 1.77 2.04 4.47 3.88 3.25
Fiserv Inc. 2.64 3.19 9.11 8.90 9.72
International Business Machines Corp. 4.62 8.58 16.71 19.56 20.60
Intuit Inc. 89.14 158.00 126.40 76.15 45.10 35.37
Mastercard Inc. 21.42 44.44 39.73 43.35 60.43
Oracle Corp. 6.28 7.13 6.97 7.43 7.47 8.88
PayPal Holdings Inc. 25.23 27.07 31.86 315.29 544.67
salesforce.com inc. 21.33 6.39 7.38 3.32 1.29 1.89
ServiceNow Inc. 5.56 3.02 0.26 -1.79 -12.52
Visa Inc. 32.31 27.72 28.92 21.92 21.77 19.76
Interest Coverage, Sector
Software & Services 14.55 14.12 14.45 13.61 16.02
Interest Coverage, Industry
Information Technology 16.72 16.24 18.10 17.31 19.12

Based on: 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).

1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 73,448 ÷ 2,346 = 31.31

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Microsoft Corp. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021.

Fixed Charge Coverage

Microsoft Corp., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in millions)
Net income 61,271  44,281  39,240  16,571  21,204  16,798 
Add: Income tax expense 9,831  8,755  4,448  19,903  1,945  2,953 
Add: Interest expense 2,346  2,591  2,686  2,733  2,222  1,243 
Earnings before interest and tax (EBIT) 73,448  55,627  46,374  39,207  25,371  20,994 
Add: Operating lease cost 2,127  2,043  1,707  1,585  1,300  1,000 
Earnings before fixed charges and tax 75,575  57,670  48,081  40,792  26,671  21,994 
 
Interest expense 2,346  2,591  2,686  2,733  2,222  1,243 
Operating lease cost 2,127  2,043  1,707  1,585  1,300  1,000 
Fixed charges 4,473  4,634  4,393  4,318  3,522  2,243 
Solvency Ratio
Fixed charge coverage1 16.90 12.44 10.94 9.45 7.57 9.81
Benchmarks
Fixed Charge Coverage, Competitors2
Accenture PLC 10.41 9.66 10.07 9.63 8.30 10.43
Adobe Inc. 18.77 10.78 13.34 12.26 9.79
Autodesk Inc. 4.58 3.09 0.62 -5.16 -4.51 0.78
Automatic Data Processing Inc. 15.85 12.22 8.51 7.43 9.05 7.82
Fidelity National Information Services Inc. 1.47 1.75 3.36 3.10 2.66
Fiserv Inc. 2.28 2.56 6.03 5.60 6.08
International Business Machines Corp. 2.62 4.41 5.26 5.69 6.77
Intuit Inc. 25.58 27.48 34.00 26.91 22.03 17.94
Mastercard Inc. 16.43 31.13 25.01 26.78 33.08
Oracle Corp. 5.17 5.68 5.50 6.38 6.39 7.44
PayPal Holdings Inc. 14.51 12.94 14.89 29.95 21.65
salesforce.com inc. 2.92 1.68 2.89 1.54 1.08 1.26
ServiceNow Inc. 2.29 1.69 0.61 -0.55 -5.67
Visa Inc. 26.74 22.89 19.17 16.32 17.20 15.28
Fixed Charge Coverage, Sector
Software & Services 8.32 8.39 8.33 7.77 8.60
Fixed Charge Coverage, Industry
Information Technology 10.36 10.69 11.65 10.94 11.53

Based on: 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).

1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 75,575 ÷ 4,473 = 16.90

2 Click competitor name to see calculations.

Solvency 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. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021.