Financial analysis report Essay Example | Topics and Well Written Essays - 750 words - 1

Financial analysis report - Essay ExampleThis can add to strength of Microsoft, covering that the company has a track record of rapid growth. Price/Sales Ratio Microsofts price to sales ratio is above the industry second-rate that shows that the company has bettor investment prospects than its peer companies or the market itself. Price/Book Value Ratio This ratio should be lower for better evaluate but Microsofts price/ parole ratio is greater than the industry. Therefore, market places less value to the book value of the company. Receivable Turnover The receivable overturn shows that Microsoft can quickly convert its accounts receivable into cash than the other companies in the market. Current Ratio The Microsofts current ratio is quite strong, following the trends. It is better than the industry showing that creditors have much security in investing in Microsoft. Quick Ratio Microsofts quick ratio again reveals a favorable trend and a strong position. Inventory Turnover The in ventory turnover of Microsoft shows the marketability of its inventory and reasonableness of quantity on hand. It is lower than the industry fair showing Microsofts weakness. Book Value/Share Microsofts book value per share is greater than the other companies in the industry, indicating a high book value of net assets behind each share.