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GuruFocus has detected 9 Warning Signs with Microsoft Corp \$MSFT.
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Microsoft Corp (NAS:MSFT)
LT-Debt-to-Total-Asset
0.26 (As of Dec. 2016)

LT Debt to Total Assets is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's long-term debt divide by its total assets. Microsoft Corp's long-term debt to total assests ratio for the quarter that ended in Dec. 2016 was 0.26.

Microsoft Corp's long-term debt to total assets ratio increased from Dec. 2015 (0.23) to Dec. 2016 (0.26). It may suggest that Microsoft Corp is progressively becoming more dependent on debt to grow their business.

Definition

Microsoft Corp's Long-Term Debt to Total Asset Ratio for the fiscal year that ended in Jun. 2016 is calculated as

 LT Debt to Total Assets (A: Jun. 2016 ) = Long-Term Debt (A: Jun. 2016 ) / Total Assets (A: Jun. 2016 ) = 40783 / 193694 = 0.21

Microsoft Corp's Long-Term Debt to Total Asset Ratio for the quarter that ended in Dec. 2016 is calculated as

 LT Debt to Total Assets (Q: Dec. 2016 ) = Long-Term Debt (Q: Dec. 2016 ) / Total Assets (Q: Dec. 2016 ) = 59306 / 224610 = 0.26

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

LT Debt to Total Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Microsoft Corp Annual Data

 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 ltd2asset 0.00 0.00 0.05 0.06 0.11 0.09 0.09 0.12 0.16 0.21

Microsoft Corp Quarterly Data

 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 ltd2asset 0.11 0.10 0.16 0.16 0.16 0.23 0.23 0.21 0.28 0.26
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