Reference no: EM133204523
Assignment - Apple Inc and Microsoft Corporation Ratio Analysis
Description - Select two publicly traded companies that compete with each other.While the two companies do not need to be head-to-head competitors, their main lines of business should broadly overlap. Download the most recent annual report for each company.Choose companies that are profitable (positive net income) and that have positive retained earnings and stockholders' equity. You should avoid automotive, banking, and financial service industries.
You need to perform all calculations for the most recent and second most recent year. In other words, you are required to do calculations for 2 years for both companies. That is a total of 40 calculations. 20 for each company.
1. Compute ROE
2. Compute ROA
3. Compute gross profit margin
4. Compute net profit margin
5. Compute accounts receivable turnover
6. Compute inventory turnover
7. Compute accounts payable turnover
8. Determine cash conversion cycle
9. Property, plant and equipment turnover
10. Total liabilities to equity.
Once the calculations are complete, do an analysis evaluating the financial strength and weakness of each company.