Financial analysis report.

Financial analysis report.

This can add to strength of Microsoft, showing that the company has a track record of rapid growth. Price/Sales Ratio: Microsoft’s price to sales ratio is above the industry average that shows that the company has better investment prospects than its peer companies or the market itself. Price/Book Value Ratio: This ratio should be lower for better value but Microsoft’s price/book ratio is greater than the industry. Therefore, market places less value to the book value of the company. Receivable Turnover: The receivable turnover shows that Microsoft can quickly convert its accounts receivable into cash than the other companies in the market. Current Ratio: The Microsoft’s current ratio is quite strong, following the trends. It is better than the industry showing that creditors have much security in investing in Microsoft. Quick Ratio: Microsoft’s quick ratio again reveals a favorable trend and a strong position. Inventory Turnover: The inventory turnover of Microsoft shows the marketability of its inventory and reasonableness of quantity on hand. It is lower than the industry average showing Microsoft’s weakness. Book Value/Share: Microsoft’s book value per share is greater than the other companies in the industry, indicating a high book value of net assets behind each share.

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