Business Research Methodology .

This article provides an overview of Microsoft Corporation, its financial position, and stock performance. It also includes a detailed calculation of investment returns and opinions on why the stock performed in this manner. The article is relevant for business research methodology and investment analysis.

Running head: BUSINESS RESEARCH METHODOLOGY
Business Research Methodology
Name of the Student:
Name of the University:
Authors Note:

BUSINESS RESEARCH METHODOLOGY
1
Table of Contents
Introduction:...............................................................................................................................2
Overview of the Company:........................................................................................................2
Providing single Graph representing the daily closing price and stock market index for the
holding period:...........................................................................................................................4
Summary of the important news that was conducted during the holding period:......................5
Providing a detailed calculation of the holding period:.............................................................5
Providing opinion on why the stock performed in this manner:................................................6
Reference and Bibliography:......................................................................................................7

BUSINESS RESEARCH METHODOLOGY
2
Introduction:
The company chosen for the assessment is Microsoft Corporation, which is listed in
US Stock exchange and is one of the leading computer components manufacturer in the
around the world. Microsoft has been chosen as the investment due to large market cap and
potential growth, which can be achieved by the organization in the long run. The share price
of Microsoft has a relatively increased currency which can be seen from the historical price
movement. Investing in Microsoft is a secure bet for the investors, which reduces the risk
from investment
Overview of the Company:
 State of incorporation: Microsoft was mainly incorporated on June 25, 19811.
 The current P/E ratio of Microsoft is mainly at the levels of 25.56.
 The Market capitalization of Microsoft is at the levels of $822,430.12 Million2
 Ticker symbol of Microsoft is ‘MSFT’
 Products and services that are provided by Microsoft are software components,
personal computing such as operating system, cross-device and other hardware
devices. The organisation provides both products the service to the end user and
companies.
 The primary NAICS category of Microsoft is 511210- Software Publishers.
1 "Microsoft Was Officially Incorporated On June 25, 1981." Windows Central. N. p., 2017.
Web. 7 Dec. 2018.
2 Editorial, Reuters. "${Instrument_Companyname} ${Instrument_Ric} Analyst Research|
Reuters.Com." U.S.. N. p., 2018. Web. 7 Dec. 2018.

BUSINESS RESEARCH METHODOLOGY
3
 Geographical markets of Microsoft are mainly at the levels of 55% for US & Canada,
while the rest 45% is for the rest of the world.
 The Customers of Microsoft mainly ranges from multination companies to the single
individual, as the organisation provides computing services to all forms of customers.
 Financial condition summary
Liquidity/Financial Health 2017-06 2018-06
Current Ratio 2.48 2.9
Quick Ratio 2.37 2.74
Debt/Equity 1.05 0.87
Efficiency 2017-06 2018-06
Days Sales Outstanding 77.24 76.52
Days Inventory 23.61 23.05
Payables Period 76.11 76.17
Receivables Turnover 4.73 4.77
Inventory Turnover 15.46 15.84
Fixed Assets Turnover 4.27 4.15
Asset Turnover 0.41 0.44
Profitability 2017-06 2018-06
Net Margin % 23.57 15.02
Return on Assets % 9.75 6.63
Return on Equity % 29.37 21.37
Interest Coverage 11.42 14.35
The above table relatively provides all the relevant information regarding financial
position of Microsoft during the fiscal year of 2018 as compared to 2017. From the
evaluation is detected that the overall financial health of the company has improved where
current ratio and quick ratio has increased while the accumulation of debt has reduced. The
efficiency position of the company has a relatively remain same where improvements in
different segments such as asset turnover can we seen. Furthermore, the decline in
outstanding sales days and days inventory has relatively help in improving the overall
financial position of the company. Interest coverage ratio of Microsoft has relatively

BUSINESS RESEARCH METHODOLOGY
4
increased while decline in the overall net profit has been witness during the fiscal year of
2018. Thus, it could be understood that the overall position of the company is relatively
positive for investment.
 The Management style of Microsoft is relevantly structured , where prescribed roles
and position are provided by the head of the management
 Key personnel of Microsoft are William H. Gates III (Chairman of the Board,
Microsoft Corporation), Steven A. Ballmer (Chief Executive Officer, Microsoft
Corporation), Satya Nadella (Chief Executive Officer) and Bill Gates (Founder and
Technology Advisor)
 Morgan Stanley has relevantly rated the Microsoft stock a Strong Buy condition
Providing single Graph representing the daily closing price and stock market index for
the holding period:
9/10/2018
9/13/2018
9/16/2018
9/19/2018
9/22/2018
9/25/2018
9/28/2018
10/1/2018
10/4/2018
10/7/2018
10/10/2018
10/13/2018
10/16/2018
10/19/2018
10/22/2018
10/25/2018
10/28/2018
10/31/2018
11/3/2018
11/6/2018
11/9/2018
-6.00%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
Holding Period Return of Microsoft and S&P 500
Microsoft S&P 500
Figure 1: Providing the Holding period return for Microsoft and S&P 5003
3 "Yahoo Is Now Part Of Oath." Finance.yahoo.com. N. p., 2018. Web. 7 Dec. 2018.

BUSINESS RESEARCH METHODOLOGY
5
The above figure relatively provides the overall holding period for Microsoft and S&P
500 for the trading period of 10 weeks. The overall returns of S&P 500 are relatively
supported by Microsoft returns, which can be seen in the above figure. The returns of
Microsoft are relatively complemented by the changes in value of S&P 500.
Summary of the important news that was conducted during the holding period:
There is significant news regarding the earnings annulment that is been conducted by
the company during the trading period. In addition, the relevant information has been can be
conducted by Microsoft to their Shareholder regarding growth and prospects that has been
achieved by the company during the fiscal year. Microsoft provided details regarding the
overall information of expanding the broadband network of us rural areas, which allows the
organization to improve their reach in USA. These were the significant information that was
provided by Microsoft to the shareholders during the trading period.
Providing a detailed calculation of the holding period:
Date Closing Share value No of Shares Value
9/7/2018 108.21 924 $ 100,000.00
11/9/201
8 109.57 924 $ 101,256.82
HPR $ 101,256.82 - $ 100,000.00
HPR $ 1,256.82
Buy Commission $ 4.95
Sell Commission $ 4.95
Income $ 1,256.82 - $ 4.95 - $4.95
Income $ 1,246.92
Tax @20% $ 249.38
Total Income $ 1,246.92 - $ 249.38
Total Income $ 997.53
Return % from the investment 0.998%

BUSINESS RESEARCH METHODOLOGY
6
The above table relatively provides the overall returns that have been generated from
investment in Microsoft during the time frame of 10 weeks. From the evaluation it can be
understood that holding period return of the investment is relatively at the levels are
$1,256.82, while relevant Commission has been provided for buying and selling the stocks
that are at the levels of $4.95. Hence, the overall income of the investor with an investment of
$100,000 will relevant generates $1,246.92 after deducting the commission of the broker.
Furthermore, tax of 20% is attached to the overall income that is generated from invest. This
mainly holds the actual returns of the investor at the levels of $977.53 or 0.998% from the
investment of $100, 0004.
Providing opinion on why the stock performed in this manner:
The stock relatively performed in accordance with the S&P 500, which is the overall
market index of US. The decline in the performance of the US would eventually affect the
overall income generation capability of Microsoft. Hence, stock performance is relatively
based on the price movement of the index. Increasing the overall investment would
eventually raise the level of returns that could be generated from Microsoft, as in short term
the price volatility of the organization is high.
4 Editorial, Reuters. "${Instrument_Companyname} ${Instrument_Ric} Analyst Research|
Reuters.Com." U.S.. N. p., 2018. Web. 7 Dec. 2018.

BUSINESS RESEARCH METHODOLOGY
7
Reference and Bibliography:
Chan, Jesse, et al. "Analysts’ stock ownership and stock recommendations." Journal of
Accounting and Economics(2018).
Corp., Microsoft. "Microsoft Corp. - SIC & NAICS Code Business
Information." Siccode.com. N. p., 2018. Web. 7 Dec. 2018.
Editorial, Reuters. "${Instrument_Companyname} ${Instrument_Ric} Analyst Research|
Reuters.Com." U.S.. N. p., 2018. Web. 7 Dec. 2018.
Li, Edward Xuejun, et al. "Do analyst stock recommendations piggyback on recent corporate
news? An analysis of regular‐hour and after‐hours revisions." Journal of Accounting
Research 53.4 (2015): 821-861.
Pickert, Simon, and Philipp Sandner. "Whom to Trust for Financial Advice?: The Quality of
Stock Recommendations on Twitter." Maximizing Commerce and Marketing Strategies
through Micro-Blogging. IGI Global, 2015. 175-207.
Microsoft Was Officially Incorporated On June 25, 1981. Windows Central. N. p., 2017.
Web. 7 Dec. 2018.
Leadership - Stories. Stories. N. p., 2018. Web. 7 Dec. 2018.
Yahoo Is Now Part Of Oath." Finance.yahoo.com. N. p., 2018. Web. 7 Dec. 2018.