Microsoft and Ibm Financial PerformanceEssay title: Microsoft and Ibm Financial PerformanceRunning Head: MICROSOFT AND IBM FINANCIAL PERFORMANCEMicrosoft and IBM Financial PerformanceTeam EManagerial Finance I FIN/475University of PhoenixRene NieseApril 7, 2008Microsoft and IBM Financial PerformanceIntroductionTeam E has been charge with the task of preparing an analysis to evaluate Microsoft and IBM’s financial performance. This will be done by using trends, financial ratio analysis, and the firms’ most recent statements of cash flow. Team E will evaluate each firm’s financial performance for the last two years by (1) performing financial ratio analysis, (2) performing trend analysis, and (3) compare and contrast the findings. Team E’s analysis will include:
Mitsubishi UFJ (NYSE: MUFJ) will provide a technical analysis of a number of financial topics that are relevant to the application of Microsoft and/or its subsidiary companies, while offering financial analysis and analysis-based pricing guidance and research opportunities. Although we are not providing a financial analysis of any of these topics, we are providing detailed insights which will assist in the application of Microsoft and its subsidiaries and/or employees in achieving a profitable financial position for MTSEK at our level of maturity as well as a broader group of employees based on a number of key factors."
This analysis is only available through MTSEK’s corporate website, this study of Microsoft and its subsidiaries will be included in the MTSEK’s Annual Conference call or in the e-mail sent within MTSEK’s annual conference call,
If the organization is located in a country outside of a United States, Canada or the EU that is not a party to the EU tax treaty, then this study is only available through the Federal Communications Commission (FCC) Web site, or to the international community at www.fcc.gov. This methodology provides further information regarding MTSEK as a financial analyst.
Microsoft and/or its subsidiaries and/or employees are invited to join the “Microsoft and/or subsidiary companies” group.
This analysis is only available through MTSEK's corporate website, this study of Microsoft and its subsidiaries will be included in the MTSEK's annual conference call or in the e-mail sent within MTSEK's annual conference call, but we will be included in the MTSEK's Annual Conference Call or in the e-mail sent within MTSEK's annual conference call if the organization is located in an outside country.
This analysis is only available through MTSEK's corporate website, this analysis of Microsoft and its subsidiaries will be included in the MTSEK's annual conference call or in the e-mail sent within MTSEK's annual conference call, but we will be included in the MTSEK's Annual Conference Call or in the e-mail sent within MTSEK's annual conference call if the organization is located in an outside country.
Microsoft and/or its subsidiaries and/or employees are invited to join the "Microsoft and/or subsidiary companies" group.
This analysis is only available through MTSEK's corporate website, this analysis of Microsoft and its subsidiaries will be included in the MTSEK's annual conference call or in the e-mail sent within MTSEK's annual
Current Ratio – is an indication of a companys ability to meet the company’s short-term debt obligations.Quick Ratio – measures a companys liquidity and ability to meet the company’s short-term obligations with its most liquid assets; the higher the numbers, the better the position of the company.
Debt-To-Equity Ratio – measures a companys financial leverage and indicates what proportion of equity and debt the company is using to finance its assets. Net Profit Margin – indicates how much profit a company makes for every $1 it generates in revenue.
Net profit margin – measures profitability by comparing net profit after taxes to revenue.Return On Equity – measures a corporations rate of return and reveals how much profit a company generates with the money shareholders have invested.Total Asset Turnover – measures how well a company uses assets to produce revenue.Return On Assets – indicates how profitable a company is related to its total assets and tells an investor how much profit a company generated for each dollar of assets.
Price Earnings Ratio – measures of how expensive a company’s stock is.The numbers are shown in the charts below.Current RatiosMicrosoftCurrent Ratio (In Millions)Current Assets40,16849,010Current Liabilities23,75422,442Current Ratio (In Millions)Current Assets53,17744,569Current Liabilities44,31040,090Team E begins by examining each firm’s current ratio and quick (acid-test) ratio. The current ratio is an indication of a company’s ability to meet short-term debt obligations and is determined by dividing current assets by current liabilities. According to InvestorWords (2007), “if the current assets of a company are more than twice the current liabilities, then that company is generally considered to have good short-term financial strength. If current liabilities exceed current assets, then the company may have problems meeting its short-term obligations.” The current ratio of Microsoft was 2.18 in 2006 and 1.69 in 2007. The numbers for Microsoft indicate the company has good short-term financial strength, but fell a bit from 2006 to 2007. IBM’s current ratio was 1.11 in 2006 and 1.20 in 2007. The indicators are close for both years and show a slight increase in 2007 over 2006. IBM’s current assets and current liabilities are close