I was looking through Microsoft’s 2019 10-K filings and noted that on their balance sheet (pg63), the long-term debt is recorded as 69,420 million. However on Note 11 (pg76), it says that “the total carrying value and estimated fair value of our long-term debt, including the current portion, were $72.2 billion and $78.9 billion, respectively.” Both of these values differ from the one recorded on the balance sheet.
Which value should we input into the financial analysis excel sheet? Could you also please explain why we should use that value and not the other two?
The amount given by you 69,420 is the total current liabilities not the debt. The long term debt is 66,662 million (66.7 billion)
“the total carrying value and estimated fair value of our long-term debt, including the current portion, were $72.2 billion and $78.9 billion” – As this sentence mentioned the carrying value of long term debt include current portion. Current portion is their short term debt.
So if you look at the long term debt is 66.7 billion while the short term debt is 5.5 billion. The total figure is $72.2 billion.
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