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Microsoft Corp (NAS:MSFT)
Interest Expense
$-640 Mil (TTM As of Sep. 2014)

Interest Expense is the amount reported by a company or individual as an expense for borrowed money. Microsoft Corp's interest expense for the three months ended in Sep. 2014 was $-161 Mil. Its interest expense for the trailing twelve months (TTM) ended in Sep. 2014 was $-640 Mil.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company’s Operating Income (EBIT) by its Interest Expense. Microsoft Corp's Operating Income for the three months ended in Sep. 2014 was $5,844 Mil. Microsoft Corp's Interest Expense for the three months ended in Sep. 2014 was $-161 Mil. Microsoft Corp's interest coverage for the quarter that ended in Sep. 2014 was 36.30. The higher the ratio, the stronger the company’s financial strength is.


Definition

Interest Expense is the amount reported by a company or individual as an expense for borrowed money.

Microsoft Corp Interest Expense for the trailing twelve months (TTM) ended in Sep. 2014 was -135 (Dec. 2013 ) + -175 (Mar. 2014 ) + -169 (Jun. 2014 ) + -161 (Sep. 2014 ) = $-640 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company’s Operating Income (EBIT) by its Interest Expense. The higher, the better.

Microsoft Corp's interest expense for the three months ended in Sep. 2014 was $-161 Mil. Its operating income for the three months ended in Sep. 2014 was $5,844 Mil. And its Long-Term Debt for the three months ended in Sep. 2014 was $18,472 Mil.

Microsoft Corp's Interest Coverage for the quarter that ended in Sep. 2014 is calculated as

Interest Coverage=-1*Operating Income (Q: Sep. 2014 )/Interest Expense (Q: Sep. 2014 )
=-1*5844/-161
=36.30

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

The higher the ratio, the stronger the company’s financial strength is.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Microsoft Corp Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
Interest Expense 000-106-38-151-295-380-429-597

Microsoft Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Interest Expense -96-95-105-109-120-118-135-175-169-161
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