Microsoft

MSFT Cloud & Enterprise Software 2/10 Low Risk

2/10

— 2 → 2 over 22 weeks

Sector avg: 1.7/10

Microsoft carries $40.3B in long-term debt, with $46.2B in scheduled principal maturities. DebtCanary scores MSFT at 2/10, suggesting manageable refinancing risk.

Maturity Schedule

As of 2026-03-31 (latest SEC filing with maturity data). Debt actions taken after this date will only appear once SEC processes the relevant XBRL filing.

Period	Amount Due	% of Total
Year 1 (0-12 months)	$9.2B	20.0%
Year 2 (12-24 months)	$0	0.0%
Year 3 (24-36 months)	$2.0B	4.4%
Year 4 (36-48 months)	$0	0.0%
Year 5 (48-60 months)	$0	0.0%
Beyond 5 Years	$34.9B	75.6%
Total Scheduled Maturities	$46.2B	100.0%

Why don't these totals match? Total scheduled maturities ($46.2B) exceeds balance-sheet long-term debt ($40.3B) by about 13%. The two figures come from different disclosures: the maturity schedule aggregates gross principal repayments from the debt footnote — typically including the current portion of long-term debt and sometimes finance leases — while balance-sheet long-term debt is a carrying value that excludes the current portion and is net of unamortized discounts, premiums, and issuance costs. They can also come from filings with different period-end dates (2026-03-31 vs 2026-03-31). Both numbers are shown exactly as reported to the SEC.

Key Metrics

Total Long-Term Debt

$40.3B

Near-Term (12mo)

$9.2B

Interest Coverage

43.8x

Debt/Equity

0.10

Cash Coverage

3.47x

Operating Income

$128.5B

Refinancing Cost Shock

If Microsoft refinanced the $9.2B due within 24 months at today's market yields, its annual interest bill would change by an estimated -$181M/year.

Show the full calculation

Debt due within 24 months (Year 1 + Year 2 buckets): $9.2B

Current average rate = interest expense / interest-bearing debt = $2.9B / $40.3B = 7.29%

Synthetic rating bucket from coverage (operating income/interest 43.8x): AAA

Market yield for AAA bucket (ICE BofA via FRED, 2026-07-23): 5.33% (BAMLC0A1CAAAEY)

Rate change: 5.33% − 7.29% = -1.96 pp

Annual cost change: -1.96% × $9.2B = -$181M/yr

Index-level estimate, not issuer-level bond pricing: the rating bucket is inferred from interest coverage (not an agency rating), and actual new-issue pricing depends on tenor, security, and market conditions. See the methodology.

Hidden future pain — added interest run-rate as the schedule rolls

+1yr

-$181M/yr

+2yr

-$181M/yr

+3yr

-$221M/yr

+4yr

-$221M/yr

+5yr

-$221M/yr

Cumulative run-rate change once all debt maturing by each horizon has refinanced. Assumes yields hold. Market-wide view on the Hidden Future Pain page.

What if yields move? market yield 5.33% (+0 bps)

24-month wall refinanced at that yield: = of operating income

Compare across all companies on the Refinancing Cliff Map →

How This Score Was Computed

Weighted average of 4 scored components (raw 2.20, rounded to 2). Weights of skipped components are redistributed proportionally among those scored.

Component	Value	Sub-Score	Weight Used
Near-Term Maturity Concentration Show calculation Year-1 maturities / Total scheduled maturities Year-1 maturities: $9.2B Total scheduled maturities: $46.2B	20.0%	5/10	30%
Interest Coverage Ratio Show calculation Operating income / Interest expense Operating income: $128.5B Interest expense: $2.9B	43.79x	1/10	25%
Debt-to-Equity Ratio Show calculation Long-term debt / Stockholders' equity Long-term debt: $40.3B Stockholders' equity: $414.4B	0.10	1/10	25%
Cash Coverage of Near-Term Debt Show calculation Cash & equivalents / Debt due within 12 months Cash & equivalents: $32.1B Near-term debt: $9.2B	3.47x	1/10	20%
Cash Runway Only scored when a company is burning cash. Operating cash flow is positive (or unreported), so runway isn't a constraint.	N/A	—	not scored

"Weight Used" shows each component's share after the weights of unscored components are redistributed. Full thresholds and formulas are on the methodology page.

Recent SEC Filings

Material disclosures from Microsoft's most recent EDGAR filings. 8-K item labels indicate the type of event reported.

Date	Form	Details
2026-06-05	8-K	Officer / Director Change
2026-05-14	8-K	Officer / Director Change
2026-04-29	10-Q	Quarterly report
2026-04-29	8-K	Earnings Results
2026-01-28	10-Q	Quarterly report
2026-01-28	8-K	Earnings Results
2025-12-08	8-K	Officer / Director Change, Shareholder Vote
2025-11-05	DEFA14A	Additional proxy materials

Related Companies

Oracle

ORCL

4/10

Debt: $42.7B 12mo: $7.2B

Salesforce

CRM

3/10

Debt: $39.3B 12mo: $0

Snowflake

SNOW

Debt: N/A 12mo: N/A

Palantir Technologies

Debt: $5.4B 12mo: N/A

Adobe

ADBE

3/10

Debt: $4.8B 12mo: $850M

Intuit

INTU

3/10

Debt: $6.2B 12mo: $1.2B

Workday

WDAY

3/10

Debt: $3.0B 12mo: $998M

Data Source: Financial data sourced from SEC EDGAR XBRL filings (10-K annual reports). Fiscal period end: 2026-03-31. Filing date: 2026-04-29. Data last fetched: 2026-07-26. Maturity schedules reflect the company's most recently reported debt repayment obligations. Data quality: Complete.
View SEC EDGAR filings for Microsoft →