The information about Microsoft, given earlier in this chapter, is quite old. Yo
ID: 2641869 • Letter: T
Question
The information about Microsoft, given earlier in this chapter, is quite old. You have just found a good position in the finance department at Microsoft, at their headquarters office in Redmond, WA. Your first assignment is to find the current values of the financial ratios. You should focus on the ratios related to the short-term financial management of the company. Do you find any significant changes in these values, compared to the numbers for 2001? Comment on the significance of these changes.
Explanation / Answer
Financial highlights of 2014 of microsoft
Working Capital USD Mil
Analysis
There is a increase in Revenue,operating income,net income,earning per share,dividends,pay out ratio,book value per share,operating cash flow,free cash flow and working capital which is a good sign for the company.
2005-06 2013-06 2014-06 Revenue USD Mil 77,849 86,833 Gross Margin % 74.0 69.0 Operating Income USD Mil 26,764 27,759 Operating Margin % 34.4 32.0 Net Income USD Mil 21,863 22,074 Earnings Per Share USD 2.58 2.63 Dividends USD 0.89 1.07 Payout Ratio % 34.5 40.7 Shares Mil 8,470 8,399 Book Value Per Share USD 9.48 10.90 Operating Cash Flow USD Mil 28,833 32,231 Cap Spending USD Mil -4,257 -5,485 Free Cash Flow USD Mil 24,576 26,746 Free Cash Flow Per Share USD 2.90 3.18Working Capital USD Mil
Analysis
There is a increase in Revenue,operating income,net income,earning per share,dividends,pay out ratio,book value per share,operating cash flow,free cash flow and working capital which is a good sign for the company.
64,049 68,621Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.