Stock Analysis on Net
Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 
Quarterly Data

Microsoft Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity (quarterly data)

Microsoft Excel
Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Accounts payable 5.61 5.12 4.48 4.67 4.23 4.35 4.29 3.73 3.76 4.33 4.39 4.03 4.21 4.62 5.21 4.67 4.50 4.42 4.54 4.34 4.20 4.16 4.16 3.24 3.12 3.07
Short-term debt 0.00 0.00 0.00 0.00 0.00 0.00 1.31 4.24 5.75 5.79 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Current portion of long-term debt 0.73 1.23 0.48 0.53 0.98 0.43 0.44 0.46 0.48 0.84 1.27 1.64 1.10 0.90 0.75 0.51 1.47 0.97 2.42 2.61 1.77 2.16 1.24 1.31 2.21 1.08
Accrued compensation 1.52 1.45 2.21 1.88 1.72 1.59 2.45 2.15 1.87 1.57 2.67 2.74 2.48 2.06 2.92 2.63 2.29 2.06 3.01 2.60 2.25 1.90 2.61 2.19 1.92 1.68
Short-term income taxes 0.31 0.57 1.16 1.21 1.13 1.86 0.98 1.51 1.23 1.80 1.01 1.10 0.97 1.87 1.11 1.35 1.10 1.87 0.65 0.70 0.51 0.79 0.71 1.15 0.95 1.23
Short-term unearned revenue 7.72 9.27 10.43 7.93 8.52 10.14 11.24 8.65 9.15 10.42 12.36 9.71 10.14 11.49 12.48 9.87 9.99 11.47 12.44 9.74 10.00 11.12 11.95 9.46 9.67 10.72
Other current liabilities 3.65 3.57 4.04 4.08 3.80 3.65 3.75 3.72 3.48 3.25 3.58 3.33 3.51 3.35 3.58 3.44 3.43 3.22 3.50 3.38 3.46 3.15 3.33 3.21 3.23 3.05
Current liabilities 19.54% 21.21% 22.81% 20.30% 20.39% 22.03% 24.46% 24.47% 25.72% 27.99% 25.28% 22.55% 22.42% 24.29% 26.06% 22.47% 22.77% 24.01% 26.56% 23.37% 22.19% 23.27% 24.00% 20.57% 21.09% 20.83%
Long-term debt, excluding current portion 5.32 5.56 6.49 7.09 7.44 8.20 8.33 8.81 9.55 9.41 10.19 11.04 12.10 12.61 12.89 13.98 14.18 14.92 15.00 16.19 18.13 18.96 19.77 22.02 22.41 23.83
Long-term income taxes 4.10 4.18 4.20 4.45 4.57 4.68 5.45 5.53 5.50 5.16 6.20 6.58 6.63 6.59 7.15 7.68 7.67 7.67 8.15 8.79 8.78 9.37 9.77 10.12 10.17 10.20
Long-term unearned revenue 0.40 0.40 0.44 0.50 0.48 0.51 0.51 0.61 0.63 0.62 0.71 0.71 0.73 0.71 0.79 0.80 0.81 0.76 0.78 0.85 0.98 0.94 1.06 1.19 1.37 1.48
Deferred income taxes 0.43 0.45 0.46 0.45 0.47 0.49 0.51 0.51 0.54 0.11 0.11 0.08 0.08 0.06 0.06 0.09 0.06 0.06 0.06 0.06 0.06 0.06 0.07 0.06 0.08 0.08
Long-term operating lease liabilities 2.61 2.73 2.82 3.14 3.23 3.13 3.03 2.99 3.01 3.03 3.09 3.24 3.29 3.24 3.15 3.30 3.17 3.00 2.88 3.00 2.92 2.58 2.55 2.54 2.54 2.39
Other long-term liabilities 8.85 8.42 7.30 6.85 6.73 5.96 5.28 4.81 4.42 4.18 4.36 4.59 4.52 4.26 4.26 4.40 4.33 4.28 4.02 4.19 4.12 3.83 3.53 3.39 3.42 3.16
Long-term liabilities 21.71% 21.73% 21.70% 22.49% 22.91% 22.96% 23.12% 23.25% 23.65% 22.49% 24.66% 26.23% 27.35% 27.47% 28.29% 30.25% 30.22% 30.68% 30.90% 33.08% 34.99% 35.73% 36.74% 39.32% 39.97% 41.14%
Total liabilities 41.25% 42.94% 44.51% 42.79% 43.30% 44.99% 47.58% 47.73% 49.36% 50.49% 49.94% 48.78% 49.76% 51.76% 54.35% 52.72% 52.99% 54.69% 57.46% 56.45% 57.18% 59.01% 60.74% 59.89% 61.06% 61.98%
Common stock and paid-in capital 16.95 17.44 17.62 19.01 19.63 19.69 19.71 20.48 20.72 21.42 22.75 24.23 24.75 24.61 23.83 24.89 24.83 24.97 24.90 26.65 26.93 26.94 26.73 27.96 28.16 28.28
Retained earnings 42.20 40.05 38.41 39.06 38.11 36.12 33.81 32.91 30.97 29.64 28.85 28.48 27.26 25.67 23.10 23.11 22.05 19.96 17.09 16.43 14.79 13.02 11.47 11.21 10.87 9.77
Accumulated other comprehensive income (loss) -0.41 -0.43 -0.54 -0.86 -1.05 -0.80 -1.09 -1.12 -1.05 -1.56 -1.54 -1.48 -1.77 -2.04 -1.28 -0.72 0.13 0.38 0.55 0.47 1.11 1.03 1.06 0.94 -0.09 -0.02
Stockholders’ equity 58.75% 57.06% 55.49% 57.21% 56.70% 55.01% 52.42% 52.27% 50.64% 49.51% 50.06% 51.22% 50.24% 48.24% 45.65% 47.28% 47.01% 45.31% 42.54% 43.55% 42.82% 40.99% 39.26% 40.11% 38.94% 38.02%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-Q (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).

The composition of liabilities and stockholders’ equity exhibited several notable trends over the observed period from September 2019 through December 2025. Current liabilities generally remained a significant portion of the total, fluctuating between approximately 20% and 26%. Long-term liabilities also constituted a substantial portion, decreasing from over 41% to around 21% over the period. Stockholders’ equity demonstrated an increasing trend, rising from roughly 38% to over 52% of the total.

Current Liabilities
Current liabilities as a percentage of total liabilities and stockholders’ equity increased from 20.83% in September 2019 to a peak of 26.56% in June 2021. Following this peak, there was a general decline, reaching 20.39% in December 2022, before increasing again to 24.46% in June 2024 and finally decreasing to 22.81% in December 2025. Within current liabilities, short-term unearned revenue consistently represented the largest component, typically ranging between 8% and 12%. Accounts payable also showed a consistent, albeit smaller, increase over much of the period, rising from 3.07% to a high of 5.21% in June 2022, before declining to 4.29% in June 2024 and 4.35% in December 2025. Accrued compensation also showed an increasing trend until June 2021, then stabilized before declining slightly.
Long-Term Liabilities
Long-term liabilities decreased steadily throughout the period, falling from 41.14% in September 2019 to 21.71% in December 2025. Long-term debt, excluding the current portion, was the largest contributor to this category, decreasing from 23.83% to 5.56% over the same timeframe. Long-term income taxes also showed a consistent decline, from 10.20% to 4.10%. Long-term operating lease liabilities exhibited a more moderate decrease, from 2.39% to 2.61%. Other long-term liabilities increased until September 2022, then decreased to 8.85% in December 2025.
Stockholders’ Equity
Stockholders’ equity demonstrated a clear upward trend, increasing from 38.02% in September 2019 to 52.27% in December 2025. This growth was primarily driven by increases in both common stock and paid-in capital, and retained earnings. Retained earnings experienced the most significant growth, rising from 9.77% to 33.81% over the period. Common stock and paid-in capital also increased, from 28.28% to 20.48%. Accumulated other comprehensive income (loss) remained relatively small and fluctuated, ending at -1.09% in December 2025.

The observed shifts suggest a decreasing reliance on debt financing and an increasing reliance on equity financing. The growth in retained earnings indicates profitability and reinvestment of earnings. The fluctuations in current liabilities likely reflect normal operating cycles and seasonal variations in business activity.