Microsoft : A Global Technology Developer

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Company Background Microsoft is a global technology developer headquartered in Redmond Washington. Microsoft works worldwide developing and distributing their products. Microsoft was founded on April 4th 1975 in Albuquerque New Mexico by Bill Gates and Paul Allen. Microsoft 's Initial Public Offering was in 1986, it is traded on NASDAQ as MSFT. Microsoft’s current CEO is Satya Nadella. Recently Microsoft has continued to work on expanding into new markets with a push into phone and app development and deploying new versions of windows software. They currently have acquired a large range of companies and compete in several smaller sub industries (Mobile, gaming, software, ect.) Their main competition includes tech giants such as Apple, and…show more content…
Since 2012 Microsoft’s Cash Ratio has been averaging about ~195% while Apple is averaging ~69.7% Why this can be bad is that Microsoft may have more cash than they need to have on hand, they could be investing this money into future research and development or programs instead of keeping it around. The Current Ratio has remained relatively steady staying at ~2.5. This is a strong indicator of Microsoft’s abilities to pay current debts quickly. While Microsoft has been expanding and acquiring debt through purchases it’s current assets have increased at a near identical rate. In a press release Microsoft reports the Mojang purchase (2.5 billion in 2014) is expected to start turning a profit in 2015, the current ratio reflects this purchase and asset increase. Long-term solvency, or financial leverage, ratios- Microsoft has remained a relatively safe company with a strong asset focus and not racking up excessive debt. The Debt-Equity ratio has been fluctuating with a worse year in 2014. That being said they are still under 1.0 (.92 in 2014) which means that although they have been taking on more debt they still have little risk. Apple had a .29 Debt-Equity ratio in 2014 making them even safer. Assets utilization, or turnover, ratios - Microsoft has had a major focus on acquiring companies and expanding its assets. It appears it needs some time to turnover these assets and make more profit. It does
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