MSFT Debt-to-Equity Ratio Analysis
Higher than 33% of Technology sector peers
Updated 82h ago·SEC filings & market data
Key Takeaway
Microsoft’s current debt-to-equity ratio of 0.14x means the company uses $0.14 of debt for every $1 of shareholders’ equity, indicating a conservative capital structure with limited leverage.
Sector Performance
33th percentileMSFT
0.09x
Sector Median
0.20x
Sector Avg
0.28x
Prior Period
0.14x(Jun 2026)
Deep Analysis
Microsoft’s current debt-to-equity ratio of 0.14x means the company uses $0.14 of debt for every $1 of shareholders’ equity, indicating a conservative capital structure with limited leverage.
This is well below the sector median of 0.27x, placing Microsoft in the 35th percentile among technology peers, meaning most competitors carry higher debt relative to equity. The year-over-year change is not available, but the quarter-over-quarter decline of -56.2% (from 0.32x to 0.14x) shows a sharp reduction in debt levels over the prior quarter. A low ratio combined with a steep downward trend suggests improving financial stability and reduced bankruptcy risk, presenting an opportunity for risk-averse investors. This metric strongly supports the overall BULLISH verdict, as a low and falling debt-to-equity ratio limits downside risk and enhances Microsoft’s ability to navigate economic uncertainty.
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about MSFT?
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
How is the Debt-to-Equity Ratio calculated?
Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.
How does MSFT's Debt-to-Equity Ratio compare to its sector?
MSFT's Debt-to-Equity Ratio of 0.09x compares to a Technology sector median of 0.20x, placing it in the 33th percentile.
Who are MSFT's closest peers by Debt-to-Equity Ratio?
The closest Technology peers by Debt-to-Equity Ratio include: TSM (0.15x), PTC (0.41x), AVGO (0.74x), U (0.75x), AAPL (0.80x).
Learn More About Debt-to-Equity Ratio
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Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.
Debt/Equity Ratio: How Much Debt Is Too Much?
The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.
The Formula
Total Debt / Shareholders' Equity
Why It Matters
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
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0.09x
Sector Median
0.20x
Sector Avg
0.28x
How MSFT's Debt-to-Equity Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.