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ANALYSIS OF FINANCIAL STATEMENTS Analysis Of Financial Statements

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Added on  2020-05-01

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Running Head: ANALYSIS OF FINANCIAL STATEMENTS Analysis Of Financial Statements 14 analysis of financial statements Ratio Analysis Contents Introduction 2 Ratio Analysis 2 Financial statements 3 Microsoft Corporation 3 (Source: Financials.morningstar.com, 2017) 4 Oracle Corporation 4 (Source: Financials.morningstar.com, 2017) 6 Analysis and interpretation 6 Liquidity ratios 6 Efficiency ratios 8 Profitability ratios 9 Capital structure ratio 11 Conclusion 12 References 14 Introduction Financial analysis focus on evaluating financial position of the company.

ANALYSIS OF FINANCIAL STATEMENTS Analysis Of Financial Statements

   Added on 2020-05-01

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Running Head: ANALYSIS OF FINANCIAL STATEMENTSANALYSIS OF FINANCIAL STATEMENTSRatio Analysis
ANALYSIS OF FINANCIAL STATEMENTS Analysis Of Financial Statements_1
Analysis Of Financial Statements 1ContentsIntroduction................................................................................................................................2Ratio Analysis............................................................................................................................2Financial statements...................................................................................................................3Microsoft Corporation............................................................................................................3(Source: Financials.morningstar.com, 2017)..........................................................................4Oracle Corporation.................................................................................................................4(Source: Financials.morningstar.com, 2017)..........................................................................6Analysis and interpretation........................................................................................................6Liquidity ratios.......................................................................................................................6Efficiency ratios......................................................................................................................8Profitability ratios...................................................................................................................9Capital structure ratio...........................................................................................................11Conclusion................................................................................................................................12References................................................................................................................................14
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Analysis Of Financial Statements 2IntroductionFinancial analysis focus on evaluating financial position of the company. It is done with the use of final accounts of the company which are prepared at the end of the financial year. This analysis shows the profitability, efficiency, liquidity and overall fiancé structure of a company. This report is all about the critical examination of the performance and position of the two companies which are Microsoft and Oracle. A comparative analysis of the financial position of these two companies is done to know which company is more profitable and efficient form investor’s point of view (Vogel, 2014).Microsoft Corporation is a multinational information technology company. It is an America based company whose founder is Bill Gates and Paul Allen. It manufactures, licenses, and sells a wide range of software products and services. Its known software products are Microsoft Windows, Microsoft Office Suite and Internet Explorer. It also designs and sell hardware devices such as Xbox, Windows phone and so on (Microsoft.com, 2017).Oracle Corporation is a computer technology corporation which basically deals in developing database software, cloud engineered systems and enterprise software products. It is considered to be the largest software developer after Microsoft and is also amongst Microsoft’s main competitors. Larry Ellison, Bob Miner and Ed Qates are the founders of thiscorporation. Oracle Applications, Oracle database, servers are some products produced and deliver by the corporation (Oracle.com, 2017).In this report, Ratio analysis of the final accounts of both the companies is done so to let the investors know about the better performing company to invest in.Ratio AnalysisTo measure company’s profitability, efficiency, liquidity and to know about its overall finance structure, the method of ratio analysis is used. It includes measurement for several categorized ratios to know about the different aspects of an organisation. They are classified as liquidity ratios, solvency ratios, activity ratios, efficiency ratios, and profitability ratios. Toanalyse the final accounts of both the companies, ratio analysis is done (Fraser, Ormiston andFraser, 2010).
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Analysis Of Financial Statements 3Financial statementsMicrosoft CorporationBalance sheet 2016-2017Particulars20162017AUD$AUD$AssetsCash & Equivalents1,13,2401,32,981Trade Accounts Receivable18,27719,792Inventory2,2512,181Other Current Assets5,8924,897Total Current Assets1,39,6601,59,851Long-Term Investments10,4316,023Net Fixed Assets18,35623,734Intangible Assets3,73310,106Other Non-Current Assets 21,51441,372Total Non-Current Assets54,03481,235Total Assets1,93,6942,41,086LiabilitiesAccounts Payable6,8987,390Taxes Payable580718Accrued Liabilities5,2645,819Short-Term Debt12,90410,121Deferred Revenues27,46834,102Other Current Liabilities6,2436,377Total Current Liabilities59,35764,527Long-Term Debt40,78376,073Other Long-Term Liabilities21,55728,092Total Long-Term Liabilities62,3401,04,165Total Liabilities1,21,6971,68,692Retained Earnings2,2822,648Other Equity69,71569,746Total Liabilities and Equity1,93,6942,41,086Income statement for the year 2016-2017Particulars20162017AUD$AUD$Sales85,32089,950
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