The beginning of the computer generation started in 1975 with Paul Allen and Bill Gates. Throughout the years the company has developed into one of the top leading company within the computer, IT, gaming system, and music environment. With any major company its progress is the development of a strategic plan implemented into the development and increase of revenues. For a Microsoft the profit margins have developed and improved through the years alone with it is planning and developing products. The discussion of Microsoft’s strategic planning, financial planning, and the risks the business takes to increase it financial gains.
Microsoft has witnessed important progress up until fiscal year 2012 in terms of revenue, cash flow, and ensuring the liquidity of its assets to reassure investors over their interests. The Microsoft Investor Relations Annual Reports (2013) website states that the fruition of Microsoft’s performance manifested in the past few years with its continual revenue growth, which rose 12% from 2010 to reach $69.9 billion in 2011, and continued to rise to a record $73.7 billion in 2012. Furthermore, cash flow from operations went up $2.9 billion in the 2011 fiscal year to reach $27 billion, and climbed another $4.6 billion to reach $31.6 billion in fiscal year 2012.
The Microsoft Investor Relations Annual Reports (2013) website states that the measures taken to facilitate liquidity proved to be successful because cash, cash equivalents, and short-term investments, increased $4.2 billion among the short term investments most importantly acquiring the purpose of strengthening the progress of liquidity and capital preservation. The short-term investments meant to strengthen liquidity and preserve capital consisted mostly of high liquidity investment-grade fixed –income securities varied...