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Boris_Badenov

The debt-to-equity (D/E) ratio for MicroStrategy (MSTR) can be calculated using the formula:

Debt-to-Equity Ratio

Total Debt

Total Stockholders’ Equity

Debt-to-Equity Ratio=

Total Stockholders’ Equity

Total Debt

From the data for 2024:

Total Debt: $18.226 billion

Total Stockholders' Equity: $9.784 billion

D/E Ratio

18.226

9.784

≈

1.86

D/E Ratio=

9.784

18.226

≈1.86

This indicates that MicroStrategy's debt is approximately 1.86 times its equity as of the end of 2024

That is high. Very high.

brian 10mo ago

Are you valuing their bitcoin at $0 in your equity calculation? Their Q2 results will realize the appreciation of their bitcoin treasury holdings as they update their bitcoin accounting to new FASB guidance on bitcoin treasury holdings.

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Discussion

Boris_Badenov 9mo ago

I think that number is too high, after checking with other sources, it was a quick lookup on ai, so it is suspect.

brian 9mo ago

all good. MSTR analyzed without consideration of its BTC treasury makes it look like the worst performing stock out there. Come April that will flip to the most profitable public company in the world.