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

Financial digest report - Essay ExampleThis can add to strength of Microsoft, showing that the company has a traverse record of rapid growth. Price/Sales Ratio Microsofts monetary value to sales symmetry is higher up the industry average that shows that the company has better investment prospects than its peer companies or the market itself. Price/ support Value Ratio This ratio should be lower for better value but Microsofts price/book ratio is greater than the industry. Therefore, market places less value to the book value of the company. Receivable swage The receivable turnover shows that Microsoft can quickly convert its accounts receivable into cash than the other companies in the market. reliable Ratio The Microsofts current ratio is quite strong, following the trends. It is better than the industry showing that creditors pitch much security in investing in Microsoft. Quick Ratio Microsofts quick ratio again reveals a favorable trend and a strong position. Inventory Turn over The inventory turnover of Microsoft shows the marketability of its inventory and reasonableness of quantity on hand. It is lower than the industry average showing Microsofts weakness. moderate 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.