Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

Analysis of Solvency Ratios 

Microsoft Excel

Solvency Ratios (Summary)

Microsoft Corp., solvency ratios

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Debt Ratios
Debt to equity 0.29 0.31 0.39 0.50 0.62 0.77
Debt to equity (including operating lease liability) 0.36 0.39 0.47 0.58 0.69 0.84
Debt to capital 0.23 0.24 0.28 0.33 0.38 0.43
Debt to capital (including operating lease liability) 0.27 0.28 0.32 0.37 0.41 0.46
Debt to assets 0.15 0.16 0.18 0.21 0.24 0.27
Debt to assets (including operating lease liability) 0.19 0.19 0.21 0.25 0.27 0.30
Financial leverage 1.91 2.00 2.19 2.35 2.55 2.80
Coverage Ratios
Interest coverage 37.72 46.38 41.58 31.31 21.47 17.27
Fixed charge coverage 17.61 19.44 19.50 16.90 12.44 10.94

Based on: 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).

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 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Microsoft Corp. debt to assets ratio improved from 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Microsoft Corp. financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

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 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
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 deteriorated from 2022 to 2023 and from 2023 to 2024.

Debt to Equity

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

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data (US$ in millions)
Short-term debt 6,693
Current portion of long-term debt 2,249 5,247 2,749 8,072 3,749 5,516
Current finance lease liabilities 2,349 1,197 1,060 791 540 317
Long-term debt, excluding current portion 42,688 41,990 47,032 50,074 59,578 66,662
Long-term finance lease liabilities 24,796 15,870 13,842 11,750 8,956 6,257
Total debt 78,775 64,304 64,683 70,687 72,823 78,752
 
Stockholders’ equity 268,477 206,223 166,542 141,988 118,304 102,330
Solvency Ratio
Debt to equity1 0.29 0.31 0.39 0.50 0.62 0.77
Benchmarks
Debt to Equity, Competitors2
Accenture PLC 0.04 0.01 0.00 0.00 0.00 0.00
Adobe Inc. 0.22 0.29 0.28 0.31 0.39
Autodesk Inc. 1.23 1.99 3.09 1.70
Cadence Design Systems Inc. 0.19 0.27 0.13 0.14 0.16
CrowdStrike Holdings Inc. 0.32 0.51 0.72 0.85 0.00
International Business Machines Corp. 2.51 2.32 2.74 2.99 3.02
Intuit Inc. 0.33 0.35 0.42 0.21 0.66 0.12
Oracle Corp. 9.98 84.33 16.08 5.93 2.58
Palo Alto Networks Inc. 0.19 1.14 17.51 5.08 2.80 0.90
Salesforce Inc. 0.17 0.20 0.19 0.07 0.09 0.22
ServiceNow Inc. 0.20 0.30 0.43 0.58 0.33
Synopsys Inc. 0.00 0.00 0.02 0.03 0.03
Debt to Equity, Sector
Software & Services 0.65 0.72 0.84 0.96 1.06
Debt to Equity, Industry
Information Technology 0.62 0.67 0.76 0.87 0.87

Based on: 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).

1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 78,775 ÷ 268,477 = 0.29

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 2022 to 2023 and from 2023 to 2024.

Debt to Equity (including Operating Lease Liability)

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

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data (US$ in millions)
Short-term debt 6,693
Current portion of long-term debt 2,249 5,247 2,749 8,072 3,749 5,516
Current finance lease liabilities 2,349 1,197 1,060 791 540 317
Long-term debt, excluding current portion 42,688 41,990 47,032 50,074 59,578 66,662
Long-term finance lease liabilities 24,796 15,870 13,842 11,750 8,956 6,257
Total debt 78,775 64,304 64,683 70,687 72,823 78,752
Operating lease liabilities (included in Other current liabilities) 3,580 2,409 2,228 1,962 1,616 1,515
Long-term operating lease liabilities 15,497 12,728 11,489 9,629 7,671 6,188
Total debt (including operating lease liability) 97,852 79,441 78,400 82,278 82,110 86,455
 
Stockholders’ equity 268,477 206,223 166,542 141,988 118,304 102,330
Solvency Ratio
Debt to equity (including operating lease liability)1 0.36 0.39 0.47 0.58 0.69 0.84
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Accenture PLC 0.15 0.12 0.15 0.18 0.21 0.00
Adobe Inc. 0.25 0.33 0.32 0.35 0.39
Autodesk Inc. 1.42 2.33 3.60 2.18
Cadence Design Systems Inc. 0.24 0.34 0.18 0.20 0.22
CrowdStrike Holdings Inc. 0.34 0.54 0.76 0.89 0.00
International Business Machines Corp. 2.66 2.46 2.92 3.23 3.27
Intuit Inc. 0.36 0.39 0.46 0.25 0.71 0.12
Oracle Corp. 10.85 88.84 16.61 6.10 2.58
Palo Alto Networks Inc. 0.27 1.33 19.12 5.68 3.16 0.90
Salesforce Inc. 0.23 0.25 0.25 0.15 0.18 0.22
ServiceNow Inc. 0.30 0.44 0.60 0.75 0.53
Synopsys Inc. 0.11 0.12 0.13 0.14 0.03
Debt to Equity (including Operating Lease Liability), Sector
Software & Services 0.74 0.82 0.94 1.08 1.13
Debt to Equity (including Operating Lease Liability), Industry
Information Technology 0.68 0.73 0.83 0.94 0.90

Based on: 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).

1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 97,852 ÷ 268,477 = 0.36

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 2022 to 2023 and from 2023 to 2024.

Debt to Capital

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

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data (US$ in millions)
Short-term debt 6,693
Current portion of long-term debt 2,249 5,247 2,749 8,072 3,749 5,516
Current finance lease liabilities 2,349 1,197 1,060 791 540 317
Long-term debt, excluding current portion 42,688 41,990 47,032 50,074 59,578 66,662
Long-term finance lease liabilities 24,796 15,870 13,842 11,750 8,956 6,257
Total debt 78,775 64,304 64,683 70,687 72,823 78,752
Stockholders’ equity 268,477 206,223 166,542 141,988 118,304 102,330
Total capital 347,252 270,527 231,225 212,675 191,127 181,082
Solvency Ratio
Debt to capital1 0.23 0.24 0.28 0.33 0.38 0.43
Benchmarks
Debt to Capital, Competitors2
Accenture PLC 0.03 0.01 0.00 0.00 0.00 0.00
Adobe Inc. 0.18 0.23 0.22 0.24 0.28
Autodesk Inc. 0.55 0.67 0.76 0.63 1.07 1.11
Cadence Design Systems Inc. 0.16 0.21 0.11 0.12 0.14
CrowdStrike Holdings Inc. 0.24 0.34 0.42 0.46 0.00
International Business Machines Corp. 0.72 0.70 0.73 0.75 0.75
Intuit Inc. 0.25 0.26 0.30 0.17 0.40 0.10
Oracle Corp. 0.91 0.99 1.09 0.94 0.86 0.72
Palo Alto Networks Inc. 0.16 0.53 0.95 0.84 0.74 0.47
Salesforce Inc. 0.15 0.16 0.16 0.06 0.08 0.18
ServiceNow Inc. 0.16 0.23 0.30 0.37 0.25
Synopsys Inc. 0.00 0.00 0.02 0.03 0.03
Debt to Capital, Sector
Software & Services 0.39 0.42 0.46 0.49 0.51
Debt to Capital, Industry
Information Technology 0.38 0.40 0.43 0.47 0.46

Based on: 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).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 78,775 ÷ 347,252 = 0.23

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 2022 to 2023 and from 2023 to 2024.

Debt to Capital (including Operating Lease Liability)

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

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data (US$ in millions)
Short-term debt 6,693
Current portion of long-term debt 2,249 5,247 2,749 8,072 3,749 5,516
Current finance lease liabilities 2,349 1,197 1,060 791 540 317
Long-term debt, excluding current portion 42,688 41,990 47,032 50,074 59,578 66,662
Long-term finance lease liabilities 24,796 15,870 13,842 11,750 8,956 6,257
Total debt 78,775 64,304 64,683 70,687 72,823 78,752
Operating lease liabilities (included in Other current liabilities) 3,580 2,409 2,228 1,962 1,616 1,515
Long-term operating lease liabilities 15,497 12,728 11,489 9,629 7,671 6,188
Total debt (including operating lease liability) 97,852 79,441 78,400 82,278 82,110 86,455
Stockholders’ equity 268,477 206,223 166,542 141,988 118,304 102,330
Total capital (including operating lease liability) 366,329 285,664 244,942 224,266 200,414 188,785
Solvency Ratio
Debt to capital (including operating lease liability)1 0.27 0.28 0.32 0.37 0.41 0.46
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Accenture PLC 0.13 0.11 0.13 0.15 0.17 0.00
Adobe Inc. 0.20 0.25 0.24 0.26 0.28
Autodesk Inc. 0.59 0.70 0.78 0.69 1.06 1.11
Cadence Design Systems Inc. 0.19 0.25 0.15 0.17 0.18
CrowdStrike Holdings Inc. 0.26 0.35 0.43 0.47 0.00
International Business Machines Corp. 0.73 0.71 0.74 0.76 0.77
Intuit Inc. 0.26 0.28 0.31 0.20 0.42 0.10
Oracle Corp. 0.92 0.99 1.08 0.94 0.86 0.72
Palo Alto Networks Inc. 0.21 0.57 0.95 0.85 0.76 0.47
Salesforce Inc. 0.19 0.20 0.20 0.13 0.16 0.18
ServiceNow Inc. 0.23 0.31 0.37 0.43 0.35
Synopsys Inc. 0.10 0.11 0.11 0.12 0.03
Debt to Capital (including Operating Lease Liability), Sector
Software & Services 0.43 0.45 0.49 0.52 0.53
Debt to Capital (including Operating Lease Liability), Industry
Information Technology 0.41 0.42 0.45 0.49 0.47

Based on: 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).

1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 97,852 ÷ 366,329 = 0.27

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 2022 to 2023 and from 2023 to 2024.

Debt to Assets

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

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data (US$ in millions)
Short-term debt 6,693
Current portion of long-term debt 2,249 5,247 2,749 8,072 3,749 5,516
Current finance lease liabilities 2,349 1,197 1,060 791 540 317
Long-term debt, excluding current portion 42,688 41,990 47,032 50,074 59,578 66,662
Long-term finance lease liabilities 24,796 15,870 13,842 11,750 8,956 6,257
Total debt 78,775 64,304 64,683 70,687 72,823 78,752
 
Total assets 512,163 411,976 364,840 333,779 301,311 286,556
Solvency Ratio
Debt to assets1 0.15 0.16 0.18 0.21 0.24 0.27
Benchmarks
Debt to Assets, Competitors2
Accenture PLC 0.02 0.00 0.00 0.00 0.00 0.00
Adobe Inc. 0.12 0.15 0.15 0.17 0.20
Autodesk Inc. 0.23 0.24 0.31 0.22 0.34 0.44
Cadence Design Systems Inc. 0.11 0.15 0.08 0.09 0.10
CrowdStrike Holdings Inc. 0.11 0.15 0.20 0.27 0.00
International Business Machines Corp. 0.42 0.40 0.39 0.39 0.41
Intuit Inc. 0.19 0.22 0.25 0.13 0.31 0.07
Oracle Corp. 0.62 0.67 0.69 0.64 0.62 0.52
Palo Alto Networks Inc. 0.05 0.14 0.30 0.31 0.34 0.22
Salesforce Inc. 0.10 0.12 0.12 0.04 0.06 0.11
ServiceNow Inc. 0.09 0.11 0.15 0.19 0.12
Synopsys Inc. 0.00 0.00 0.01 0.02 0.02
Debt to Assets, Sector
Software & Services 0.25 0.26 0.28 0.30 0.32
Debt to Assets, Industry
Information Technology 0.26 0.26 0.28 0.30 0.30

Based on: 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).

1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 78,775 ÷ 512,163 = 0.15

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 2022 to 2023 and from 2023 to 2024.

Debt to Assets (including Operating Lease Liability)

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

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data (US$ in millions)
Short-term debt 6,693
Current portion of long-term debt 2,249 5,247 2,749 8,072 3,749 5,516
Current finance lease liabilities 2,349 1,197 1,060 791 540 317
Long-term debt, excluding current portion 42,688 41,990 47,032 50,074 59,578 66,662
Long-term finance lease liabilities 24,796 15,870 13,842 11,750 8,956 6,257
Total debt 78,775 64,304 64,683 70,687 72,823 78,752
Operating lease liabilities (included in Other current liabilities) 3,580 2,409 2,228 1,962 1,616 1,515
Long-term operating lease liabilities 15,497 12,728 11,489 9,629 7,671 6,188
Total debt (including operating lease liability) 97,852 79,441 78,400 82,278 82,110 86,455
 
Total assets 512,163 411,976 364,840 333,779 301,311 286,556
Solvency Ratio
Debt to assets (including operating lease liability)1 0.19 0.19 0.21 0.25 0.27 0.30
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Accenture PLC 0.07 0.06 0.07 0.08 0.09 0.00
Adobe Inc. 0.14 0.17 0.17 0.19 0.20
Autodesk Inc. 0.26 0.28 0.36 0.29 0.41 0.44
Cadence Design Systems Inc. 0.14 0.18 0.11 0.13 0.14
CrowdStrike Holdings Inc. 0.12 0.16 0.21 0.29 0.00
International Business Machines Corp. 0.44 0.42 0.42 0.43 0.45
Intuit Inc. 0.20 0.24 0.27 0.16 0.33 0.07
Oracle Corp. 0.67 0.71 0.73 0.66 0.64 0.52
Palo Alto Networks Inc. 0.07 0.16 0.33 0.35 0.38 0.22
Salesforce Inc. 0.14 0.15 0.15 0.10 0.11 0.11
ServiceNow Inc. 0.13 0.17 0.21 0.24 0.19
Synopsys Inc. 0.07 0.07 0.08 0.08 0.02
Debt to Assets (including Operating Lease Liability), Sector
Software & Services 0.29 0.30 0.32 0.34 0.34
Debt to Assets (including Operating Lease Liability), Industry
Information Technology 0.28 0.29 0.31 0.33 0.31

Based on: 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).

1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 97,852 ÷ 512,163 = 0.19

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 2022 to 2023 and from 2023 to 2024.

Financial Leverage

Microsoft Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data (US$ in millions)
Total assets 512,163 411,976 364,840 333,779 301,311 286,556
Stockholders’ equity 268,477 206,223 166,542 141,988 118,304 102,330
Solvency Ratio
Financial leverage1 1.91 2.00 2.19 2.35 2.55 2.80
Benchmarks
Financial Leverage, Competitors2
Accenture PLC 1.98 1.99 2.14 2.21 2.18 2.07
Adobe Inc. 1.80 1.93 1.84 1.83 1.97
Autodesk Inc. 5.34 8.24 10.14 7.54
Cadence Design Systems Inc. 1.67 1.87 1.60 1.58 1.60
CrowdStrike Holdings Inc. 2.88 3.43 3.53 3.14 1.89
International Business Machines Corp. 6.00 5.80 6.98 7.57 7.30
Intuit Inc. 1.74 1.61 1.69 1.57 2.14 1.68
Oracle Corp. 16.20 125.24 25.03 9.56 4.99
Palo Alto Networks Inc. 3.87 8.29 58.35 16.14 8.23 4.16
Salesforce Inc. 1.67 1.69 1.64 1.60 1.63 1.97
ServiceNow Inc. 2.28 2.64 2.92 3.07 2.83
Synopsys Inc. 1.68 1.71 1.65 1.64 1.57
Financial Leverage, Sector
Software & Services 2.58 2.76 2.98 3.18 3.33
Financial Leverage, Industry
Information Technology 2.44 2.56 2.71 2.90 2.86

Based on: 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).

1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 512,163 ÷ 268,477 = 1.91

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 2022 to 2023 and from 2023 to 2024.

Interest Coverage

Microsoft Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data (US$ in millions)
Net income 88,136 72,361 72,738 61,271 44,281 39,240
Add: Income tax expense 19,651 16,950 10,978 9,831 8,755 4,448
Add: Interest expense 2,935 1,968 2,063 2,346 2,591 2,686
Earnings before interest and tax (EBIT) 110,722 91,279 85,779 73,448 55,627 46,374
Solvency Ratio
Interest coverage1 37.72 46.38 41.58 31.31 21.47 17.27
Benchmarks
Interest Coverage, Competitors2
Accenture PLC 165.48 193.31 195.34 131.46 205.84 273.26
Adobe Inc. 61.17 54.64 51.49 37.00 21.38
Autodesk Inc. 14.32 9.69 11.70 6.46 0.18
Cadence Design Systems Inc. 36.43 46.58 46.26 31.50 26.44
CrowdStrike Holdings Inc. 5.77 -5.31 -5.34 -55.36 -315.25
International Business Machines Corp. 6.42 1.97 5.20 4.62 8.58
Intuit Inc. 15.67 13.05 32.38 89.14 158.00 126.40
Oracle Corp. 4.39 3.65 3.84 6.28 7.13 6.97
Palo Alto Networks Inc. 120.07 21.82 -6.56 -1.85 -1.61 0.11
Salesforce Inc. 20.49 3.30 8.09 24.28 7.42 8.80
ServiceNow Inc. 43.00 15.78 9.89 5.56 3.02
Synopsys Inc. 1,106.08 657.96 240.38 125.16 47.79
Interest Coverage, Sector
Software & Services 17.56 18.23 17.67 14.41 13.00
Interest Coverage, Industry
Information Technology 18.86 24.65 23.05 16.83 15.85

Based on: 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).

1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= 110,722 ÷ 2,935 = 37.72

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 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Fixed Charge Coverage

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

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data (US$ in millions)
Net income 88,136 72,361 72,738 61,271 44,281 39,240
Add: Income tax expense 19,651 16,950 10,978 9,831 8,755 4,448
Add: Interest expense 2,935 1,968 2,063 2,346 2,591 2,686
Earnings before interest and tax (EBIT) 110,722 91,279 85,779 73,448 55,627 46,374
Add: Operating lease cost 3,555 2,875 2,461 2,127 2,043 1,707
Earnings before fixed charges and tax 114,277 94,154 88,240 75,575 57,670 48,081
 
Interest expense 2,935 1,968 2,063 2,346 2,591 2,686
Operating lease cost 3,555 2,875 2,461 2,127 2,043 1,707
Fixed charges 6,490 4,843 4,524 4,473 4,634 4,393
Solvency Ratio
Fixed charge coverage1 17.61 19.44 19.50 16.90 12.44 10.94
Benchmarks
Fixed Charge Coverage, Competitors2
Accenture PLC 13.46 10.98 12.25 10.41 9.66 10.07
Adobe Inc. 30.56 26.79 25.59 18.77 10.78
Autodesk Inc. 26.24 7.06 4.46 4.58 3.09 0.62
Cadence Design Systems Inc. 14.79 15.50 13.77 11.46 9.95
CrowdStrike Holdings Inc. 3.98 -3.39 -3.39 -6.40 -12.01
International Business Machines Corp. 4.32 1.52 3.13 2.62 4.41
Intuit Inc. 11.14 9.03 14.67 25.58 27.48 34.00
Oracle Corp. 3.53 3.12 3.22 5.17 5.68 5.50
Palo Alto Networks Inc. 12.78 7.20 -1.18 -1.09 -0.52 0.41
Salesforce Inc. 4.82 1.52 2.18 2.94 1.69 3.00
ServiceNow Inc. 7.59 3.87 2.95 2.29 1.69
Synopsys Inc. 14.38 12.91 9.29 7.46 6.30
Fixed Charge Coverage, Sector
Software & Services 9.63 9.53 9.38 7.64 7.52
Fixed Charge Coverage, Industry
Information Technology 12.60 14.17 13.49 10.22 10.45

Based on: 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).

1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 114,277 ÷ 6,490 = 17.61

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 deteriorated from 2022 to 2023 and from 2023 to 2024.