Microsoft Corp. (NASDAQ:MSFT)

Debt to Equity Ratio

This ratio shows a clear downward trend from 0.66 in September 2019 to 0.13 by June 2025, indicating a progressive reduction in financial leverage over the analyzed periods. A slight increase can be observed around mid-2023 (0.32 in September 2023), but the general direction resumes downward afterward.

Debt to Equity Ratio Including Operating Lease Liability

The adjusted ratio similarly declines from 0.72 in September 2019 to 0.18 in June 2025. The trend mirrors the unadjusted ratio, with a minor increase noted in mid-2023 reaching 0.39, followed by a steady decrease thereafter.

Debt to Capital Ratio

This metric consistently decreases from 0.40 to 0.11 over the period, reflecting reduced reliance on debt as part of total capital. Despite temporary flattening phases, especially around 2023 where a small increase arises, the overall movement is downward.

Debt to Capital Ratio Including Operating Lease Liability

Including operating leases, the debt to capital ratio moves from 0.42 to 0.15, showing a decreasing trend despite some volatility. Compared to the unadjusted measure, it remains slightly higher but demonstrates similar dynamics, including a peak around mid-2023.

Debt to Assets Ratio

This ratio declines steadily from 0.25 to 0.07, suggesting improved asset coverage relative to debt. Minor fluctuations are seen, particularly an increase in 2023, but the trend overall indicates strengthening asset backing.

Debt to Assets Ratio Including Operating Lease Liability

The inclusion of operating lease liability raises the ratio slightly, decreasing from 0.27 to 0.10 across the periods. The pattern is similar, with a modest increase in 2023 followed by further reductions.

Financial Leverage Ratio

Financial leverage decreases from 2.63 in September 2019 to around 1.75-1.80 in the projections for 2025. The trend shows a gradual reduction, reflecting less reliance on debt financing. A slight uptick occurs mid-2022 to mid-2023, but the ratio subsequently declines toward the end of the timeframe.

Summary of Observed Trends

Overall, the analyzed ratios indicate a consistent strategy toward reducing leverage and strengthening the capital structure. The company shows a marked decrease in debt-related ratios, both in pure debt terms and when factoring operating leases. This trend suggests improved financial stability and potentially enhanced creditworthiness over time. Temporary upticks occurring mostly around 2023 may reflect cyclical factors or strategic adjustments but do not substantially alter the downward trajectory in leverage ratios. The financial leverage ratio’s decline corroborates this interpretation, highlighting a gradual shift toward a more conservative financial profile.

The financial data reveals notable trends in the debt and equity structure over the analyzed periods. The total debt exhibits a general decreasing trajectory from September 2019 to June 2023, declining from 69,495 million US dollars to 47,237 million US dollars. However, a significant jump is observed in the following periods, peaking at 74,219 million US dollars by December 2023, before resuming a downward pattern towards 43,151 million US dollars by June 2025.

Concurrently, stockholders’ equity demonstrates steady and continuous growth throughout the entire timeframe. Starting at 106,061 million US dollars in September 2019, it increases consistently quarter over quarter, reaching a high of 343,479 million US dollars by June 2025. There are no periods showing declines or stagnation, indicating strong equity accumulation and retained earnings growth.

The debt to equity ratio reflects these combined movements. Initially, this ratio declines consistently from 0.66 in September 2019 to a low of 0.23 by June 2023, signifying a strengthening equity base relative to debt obligations. The ratio then rises temporarily to 0.32 by September 2023, corresponding with the spike in total debt. Subsequently, the ratio decreases again, falling to 0.13 by June 2025, which indicates improved financial leverage and a more conservative capital structure in the later periods.

Total Debt

Decreased steadily for almost four years, followed by a sharp increase in late 2023, then resumed a downward trend.

Stockholders’ Equity

Consistent growth every quarter without interruption, more than tripling over the period.

Debt to Equity Ratio

Declined steadily until mid-2023, spiked briefly in late 2023, then resumed decline to very low levels by mid-2025, indicating reduced leverage.

The overall analysis suggests a strategy focused on strengthening equity while managing debt levels prudently, with a brief period of increased borrowing that was quickly reversed. The resulting capital structure portrays enhanced financial stability and lower risk as of the latest periods covered.

The financial data indicate significant movements in total debt, stockholders' equity, and the debt-to-equity ratio over the analyzed periods. The trends reveal changes in capital structure and financial leverage across multiple quarters.

Total Debt (including operating lease liability)

The total debt exhibited a generally declining trend from September 30, 2019, through June 30, 2023, dropping from approximately 76,154 million USD to a low near 59,965 million USD. However, an exceptional increase occurred in the quarters starting September 30, 2023, and December 31, 2023, where debt surged sharply to figures approaching 88,374 million USD before sharply decreasing again to approximately 60,588 million USD by June 30, 2025. This pattern suggests a significant, but temporary, increase in liabilities likely associated with specific transactions or financing activities during late 2023, followed by a rapid deleveraging or repayment phase thereafter.

Stockholders’ Equity

Stockholders’ equity displayed a consistent upward trajectory throughout the entire period. Starting at around 106,061 million USD in September 2019, equity steadily increased each quarter, surpassing 343,479 million USD by June 30, 2025. The continuous growth in equity implies accumulation of retained earnings, additional capital infusion, or appreciation in asset values over time, contributing to an improved financial foundation and strengthening the entity's net worth.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio progressively declined from 0.72 in September 2019 to a minimum of approximately 0.18 by June 2025, reflecting lowering financial leverage and reduced dependency on debt financing relative to equity value. An exception to this steady decline is noted in the period around September to December 2023, where the ratio temporarily increased to near 0.39, coinciding with the surge in total debt during the same timeframe. Post this spike, the ratio resumed its downward trend, reinforcing the overall strategy of deleveraging and equilibrium restoration between debt and equity components.

In summary, the data portray a company that predominantly pursued debt reduction and equity growth strategies over the analyzed timeframe, improving its capital structure and reducing leverage. The anomaly in late 2023 suggests short-term adjustments or one-off events impacting liabilities, temporarily elevating leverage metrics before returning to the general pattern of deleveraging.

The financial data reveals notable trends in the company's debt structure and capital management over the observed periods. Total debt exhibits a generally declining trajectory from September 2019 through June 2023, indicating a consistent effort to reduce debt levels. This decrease, however, is interrupted by a significant upward shift starting from June 2023, where total debt rises sharply and reaches its highest recorded values by December 2023. Subsequently, debt levels resume a downward trend towards June 2025, showing effective debt management and reduction efforts following the peak.

Total capital shows a steady increasing trend throughout the periods observed. From September 2019 to June 2025, capital grows consistently, with accelerated growth notable after June 2021. This continuous increase in capital suggests ongoing investments, retained earnings, or equity financing, contributing to an expanding capital base.

The debt to capital ratio mirrors the trends observed in total debt and total capital. It declines steadily from 0.40 in September 2019 to a low of around 0.19 in June 2023, reflecting an improving balance between debt financing and overall capital. In the middle of 2023, the ratio spikes to 0.24 and remains elevated for several quarters, corresponding to the previously noted surge in debt levels. Thereafter, the ratio declines markedly again, reaching a low of approximately 0.11 by June 2025, which indicates increased financial stability and reduced leverage as the company lowers its reliance on debt relative to its capital.

Overall, the data suggest a strategic pattern of leveraging capital growth to reduce debt burden for most of the period, punctuated by a temporary increase in debt. This temporary increase may reflect specific financing needs or strategic investments during that time. The subsequent reduction in debt and steady growth in capital point to a strengthening financial position and prudent capital structure management over the long term.

Total Debt

Generally decreases from 69,495 million USD in Sep 2019 to 47,237 million USD in Jun 2023, followed by a sharp increase to 74,219 million USD in Dec 2023, then declines again to 43,151 million USD by Jun 2025.

Total Capital

Consistently increases from 175,556 million USD in Sep 2019 to 386,630 million USD in Jun 2025, with steady growth and occasional acceleration post-Jun 2021.

Debt to Capital Ratio

Decreases from 0.40 in Sep 2019 to about 0.19 in Jun 2023, spikes to 0.24 in the latter half of 2023, and then declines steadily to approximately 0.11 by Jun 2025, indicating reduced leverage over time except for one period of increased indebtedness.

The financial data reflects significant trends in the company's capital structure and debt management over the observed periods.

Total debt (including operating lease liability)

The total debt shows an overall declining trend from September 30, 2019, through June 30, 2023, decreasing from approximately 76.2 billion USD to about 60.0 billion USD. This downward movement indicates a systematic reduction in debt levels. However, starting around September 30, 2023, total debt experienced a notable increase, reaching a peak of approximately 88.4 billion USD by December 31, 2023. Subsequently, debt levels again decreased, returning near the earlier lower levels, ending at about 60.6 billion USD by June 30, 2025. This pattern suggests a temporary accumulation of debt in late 2023 followed by deleveraging in the following periods.

Total capital (including operating lease liability)

Total capital exhibits a consistent upward trajectory throughout the entire period, rising from roughly 182.2 billion USD at the end of September 2019 to over 404.1 billion USD by June 2025. This steady increase indicates continuous growth in the company's capital base, reflecting possible reinvestment, retained earnings, or new equity financing contributing to an expanding capital structure.

Debt to capital ratio (including operating lease liability)

The debt to capital ratio shows a clear and sustained decline from 0.42 at the end of September 2019 to a low of 0.15 by June 2025. This decreasing ratio indicates an improving leverage position, with debt constituting a smaller proportion of the total capital over time. Notably, the ratio declines steadily despite the short-term spike in total debt observed in late 2023, implying that total capital increased sufficiently to offset that temporary rise in debt levels. The data suggests an overall strategy focused on strengthening financial stability and reducing reliance on debt financing.

In summary, the data reveals a consistent effort to reduce leverage through debt repayment or management, accompanied by steady growth in overall capital. The temporary increase in debt towards the end of 2023 appears to be a short-term financing maneuver rather than a reversal of the longer-term deleveraging trend.

Total Debt

The total debt exhibited a generally downward trend from September 2019 to June 2023, decreasing from approximately $69.5 billion to about $47.2 billion. This reduction indicates a consistent effort to deleverage or pay down liabilities during this period. However, starting from June 2023, there is a notable spike in total debt, peaking around December 2023 at approximately $74.2 billion, which represents a significant increase compared to previous levels. Subsequently, debt decreases again through the following quarters, falling to approximately $43.2 billion by June 2025. This pattern suggests an episodic increase in borrowing followed by a resumption of debt reduction efforts.

Total Assets

Total assets followed a steady upward trajectory throughout the entire time frame observed. Beginning at approximately $279 billion in September 2019, assets rose consistently to reach about $412 billion by June 2023. After this, an accelerated increase occurred, with total assets reaching nearly $619 billion by June 2025. This continuous asset growth reflects expansion or accumulation of resources, investments, or acquisition activity.

Debt to Assets Ratio

The debt to assets ratio declined markedly from 0.25 in September 2019 to a low of approximately 0.11 by June 2023, evidencing improved financial leverage and a stronger asset base relative to debt. Despite the subsequent spike in total debt seen during the period starting from mid-2023, the ratio temporarily rose again to about 0.16 by December 2023 and March 2024. Thereafter, the ratio resumed its downward trend, falling below 0.1 by early 2025 and reaching 0.07 by mid-2025. This overall decline suggests a general strengthening of the balance sheet over the assessed period, with relative debt levels decreasing in the context of asset growth.

The financial data exhibits several notable trends with respect to total debt, total assets, and the debt-to-assets ratio over multiple quarters.

Total Debt (including operating lease liability)

Total debt initially demonstrates a declining trend from September 2019 through June 2023, decreasing from approximately $76.2 billion to around $60 billion. However, this trend is interrupted in the period from June 2023 to December 2023, during which total debt rises sharply, peaking near $88.4 billion. Subsequently, total debt decreases again, declining to about $60.6 billion by June 2025. This pattern suggests episodic increases in leverage or financing activities followed by deleveraging phases.

Total Assets

Total assets show a consistent upward trajectory throughout the entire period, rising from approximately $279 billion in September 2019 to nearly $619 billion by June 2025. This steady increase indicates ongoing asset accumulation, which may be indicative of organic growth, acquisitions, or capital investments expanding the company's asset base.

Debt to Assets Ratio (including operating lease liability)

The debt-to-assets ratio steadily declines from 0.27 in late 2019 to a low of 0.10 by June 2025, reflecting an overall decrease in leverage relative to the asset base. Despite the temporary spike in debt levels observed around late 2023, this ratio remains below the initial values and resumes its downward trend afterward. The fluctuating but generally decreasing ratio suggests cautious management of debt relative to growing assets, enhancing financial stability over the long term.

In summary, the company appears to be increasing its asset base significantly while managing to reduce its leverage over the period analyzed. Periods of increased debt do occur but are relatively short-lived and followed by notable reductions. This pattern may reflect strategic financing decisions, with a focus on maintaining a conservative leverage profile in the context of expanding asset holdings.

The financial data reveals several key trends over the periods observed. Total assets show a consistent upward trajectory, increasing from approximately 279 billion US dollars in September 2019 to over 619 billion US dollars by June 2025. This indicates substantial growth in the company's asset base, more than doubling over the timeframe.

Stockholders' equity also exhibits a strong growth pattern, rising steadily from about 106 billion US dollars in September 2019 to roughly 343 billion US dollars by June 2025. This growth in equity suggests ongoing retention of earnings and possibly additional equity financing, reflecting strengthening shareholder value and financial solidity.

The financial leverage ratio, calculated as total assets divided by stockholders' equity, shows a general downward trend. Starting at 2.63 in September 2019, it declines to around 1.8 by June 2025. This gradual reduction in leverage indicates a decrease in the relative amount of debt financing compared to equity, pointing to an overall strengthening of the company's capital structure and a more conservative financing approach over time.

Total Assets

Consistently increased over the examined periods, more than doubling from 278,955 million to 619,003 million US dollars.

Stockholders’ Equity

Steadily grew from 106,061 million to 343,479 million US dollars, supporting the buildup of net worth and financial stability.

Financial Leverage

Gradually declined from 2.63 to approximately 1.8, suggesting a shift toward greater equity reliance and reduced financial risk.