Msft Financial Reporting Strategy

Microsoft has their dominance of the industry at stake. They could potentially come out on top if left to continue their current tactics. They are masterfully “marketing their products” and it is paying off for them (Love, 1997).

1. What are the factors that likely explain the difference between Microsoft’s market value of equity and its reported book value of equity?

One competitive strategy that Microsoft may consider would be lowering the price of the software. Microsoft’s current OS average cost is $200 but can be as high as six to seven hundred, while Apple currently offers theirs on average at about $50. Lowering the average cost of the OS could increase demand as well as sales (“Calibex”, 1999-2015).

Answer: The difference between the company’s market value and book value is a factor of the intangible assets like brand value, human capital, customer satisfaction and loyalty. These intangible assets become the factor of production providing future growth. Microsoft’s accounting policies had a negative impact on the book value of the company.

* Microsoft has retained $18.9 billion in earning over the years. It has over 2.5 times that amount in stockholder equity ($47.29 billion), no

Microsoft is in an industry that makes it more difficult to apply DuPont analysis averages to determine its financial health. Microsoft obviously operates

Microsoft has been one of the few companies to really be able to with stand the economy and be able to remain solid and grow and become a monster company. Microsoft is still developing every day and coming out with better software and systems non-stop. By Microsoft defining what a monopoly is, means that they are like the only seller. Microsoft definitely fits into that category. At times it seems like Microsoft is competing against themselves because they are constantly coming out with something better than they previously had. This surely effects the financial industry because it seems like nobody can compete with Microsoft. Other companies are affected by this in an adverse way because the other companies have to use Microsoft because it’s only them. The other issue is the pricing, it can be set at whatever they want because it’s a monopoly.. This does affect other technologies as

One company that appears to have a gap between its mission and its capabilities is Microsoft. The software giant has long had a problem with respect to innovation, and continues to rely on aging franchises for the bulk of its revenue. It was left out of the mobile operating systems boom and has failed to be a leader in either software or consumer electronics as a result (Clarke, 2010).

Attached is an Income Statement from 2005 to 2007 (Microsoft Corporation Annual Report, 2008). As you can see, revenues and net income have continued to increase over the years. Earnings per share have increased as well. This shows that Microsoft is in a good financial standing. This means they are able to pay their shareholders and increase what they

Microsoft Corporation is a public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions. Established on April 4, 1975 to develop

This report is issued in order to inform the public about Microsoft Corporation. We analyzed the profitability and liquidity of this company. In addition, we were able to provide recommendations for investments or credits in Microsoft for the best interest of the public.

It istaking the company’s stock price and comparing it to its earnings, cash flow, or book value (Nishi &Doering, 2000).

Financial statements are frequently a key source of information for financial decisions and taking a look at Microsoft’s financial statements can help us decide certain things about the company. There are three different types of statements that will be discussed in this section. These include: the balance sheet, the income statement, and the statement of cash flows. They are discussed here in either the sense of quarterly or yearly statements and will be noted as so. All information has been derived from Yahoo Finance. (http://finance.yahoo.com)

As Microsoft and the software industry grew, the computer hardware manufacturers no longer saw the opportunity to exploit Bill Gates= company, as they had done initially with BASIC, one of the first programs Microsoft

in order to create possibly the most effective and versatile workforce of any corporation in existence. To study Microsoft's way of doing business is to look at the company from many angles, from a managerial and organizational standpoint to its process of developing products and services for its customers and its competitive environment. The purpose of this paper is to analyze Microsoft from a strategic fit