Andrew Potter is comparing the cash- flow- generating ability of Microsoft with that of Apple Inc. He collects information from the companies’ annual reports and prepares the following table. Cash Flow from Operating Activities as a Percentage of Total Net Revenue 2017 (%) 2016 (%) 2015 (%) Microsoft 43.9 39.1 31.7 Apple Inc. 27.7 30.5 34.8 As a Percentage of Average Total Assets 2017 (%) 2016 (%) 2015 (%) Microsoft 18.2 18.1 17.1 Apple Inc. 18.2 21.5 31.1 What is Potter likely to conclude about the relative cash- flow- generating ability of these two companies?
Andrew Potter is comparing the cash- flow- generating ability of Microsoft with that of Apple Inc. He collects information from the companies’ annual reports and prepares the following table.
Cash Flow from Operating Activities
as a Percentage of Total Net Revenue
2017 (%) 2016 (%) 2015 (%)
Microsoft 43.9 39.1 31.7
Apple Inc. 27.7 30.5 34.8
As a Percentage of Average Total Assets
2017 (%) 2016 (%) 2015 (%)
Microsoft 18.2 18.1 17.1
Apple Inc. 18.2 21.5 31.1
What is Potter likely to conclude about the relative cash- flow- generating ability of these two companies?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
