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Ratio Analysis of Intel and Microsoft in 2013

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Ratio analysis of Intel and Microsoft in 2013

LNU
SWIBS
Management 3
Ellie
126602308

The two companies I chose are Microsoft Inc.’s and Intel Corporation’s. Microsoft. Based on the compare with these ratios, we could do some fundamental analysis of risk level and profitability of Intel and Microsoft, to appraise the financial performance and financial position of two companies. The relative ratios of two companies are calculated as follows:

Ratio | Intel | Microsoft | return on equity=net profitsharesholder's funds(equity)×100% | 962058256=0.17 | 496578944=0.06 | asset turnover=salessharesholder's funds(equity)×100% | 5270858256=0.90 | 1989678944=0.25 | net profit margin=net profit (before or) after taxsales×100% | 962052708=0.18 | 496519896=0.25 | gross profit=gross profitsales×100% | 3152152708=0.60 | 1429419896=0.72 | operating profit=operating profitsales×100% | 1229152708=0.23 | 607319896=0.31 | current ratio=current assetscurrent liability×100% | 3208413568=2.36 | 7491828774=2.60 | stock-holding period=inventorycosts of sales×365 | 417221187×365=71.8 | 19385602×365=126 | average debtors collection period=trade receivablessales×365days | 617652708×365=42.8 | 1911819896×365=350.7 | average creditors payment period=trade payablessales×365days | 1119121187×365=192.8 | 101825602×365=663.4 | gearing=all borrowingssharesholder;s funds(equity)×100% | 1316558256=0.23 | 1260178944=0.16 |

The ratio will be analyzed from four areas of interest: profitability, liquidity, gearing and investment performance.
Profitability Indicators Ratios:
Profitability is the ability of a business to earn profit over a period of time. The profitability ratios show the combined effects of liquidity, asset management and gearing on operating results. The overall measure of success of a business is the profitability, which results from the effective use of its resources.

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