Microsoft Accounting Financial Analysis Report

In this ppt slide we will discuss about microsoft finance and below are the summaries point:- Gross margin increased by 1.12% from 2017 to 2018, due to revenue percentage increasing more than COGS percentage. Operating expenses ratio reduced by 2.86% from 2017 to 2018, due to impairment and restructuring expenses coming down to nil. R&D expenses to sales ratio reduced by 1.16% from 2017 to 2018, due to revenue percentage increasing more than R&D expense percentage. Net profit margin reduced by 43.11% from 2017 to 2018, due to operational expenses increase percentage being more than sales percentage. Tax coverage ratio reduced from 6.78 times to 1.83 times from 2017 to 2018, due to tax percentage increasing more than net profit percentage. Current ratio reduced from 2.92 to 2.90 from 2017 to 2018, indicating deteriorating liquidity status. Receivable turnover ratio increased from 0.23 to 0.24, indicating the company is taking more time to collect dues from debtors and deteriorating receivable position. Trade payable ratio stable at 0.22 from 2017 to 2018, indicating regular interval payments to suppliers. Depreciation to capital expense ratio increased by 68.03%, due to increased depreciation expenses and yearly capital expenditure remaining constant.

ACCOUNTING FINANCIAL ANALYSIS REPORT
NAME OF THE STUDENT
NAME OF THE UNIVERSITY
STUDENT ID

Gross profit
Sales
Gross margin
Operating expenses
Sales
Operating expense ratio
R&D expenses
Sales
R&D expenses to sales satio
Net income
Sales
Net profit margin
Tax expenses
Earning before tax
Tax coverage ratio
Current assets
Current liabilities
Current ratio
Receivables
Sales
Receivable turnover ratio
Payables
COGS
Trade payable ratio
Depreciation expenses
Yearly capital expenditures
Depreciation to capital expenses ratio
Sales
Assets
Asset turnover ratio
CFO
Assets
Operating cash to asset ratio
CFI
Assets
Investing cash to asset ratio
CFF
Assets
Financing cash to asset ratio
-50000
0
50000
100000
150000
200000
250000
300000
2018
2017
Changes ($)
Changes (%)

Gross margin of the company that represents the earnings available with the
firm after making payment for COGS has been increased by 1.12% from 2017
to 2018. The increase was due to the fact that the revenue percentage
increased more than the increase in the COGS percentage

Operating expenses ratio of the company that represents the earnings
available with the firm after making payment for operational expenses
has been reduced by 2.86% from 2017 to 2018. The reduction was due
to the fact that the impairment and restructuring expenses came down
to nil. It represents the company has improved in its expenses aspect.

R&D expenses to sales ratio of the company has been reduced by
1.16% from 2017 to 2018. The increase was due to the fact that the
revenue percentage increased more than the increase in the R&D
expense percentage

Net profit margin of the company that represents the earnings available
with the firm after meeting all the expenses has been reduced by
43.11% from 2017 to 2018. The reduction was due to the fact that the
operational expenses increase percentage was more than the increase
in the sales percentage.

Tax coverage ratio of the company that represents the earnings available
with the firm for making tax related payment has been reduced from
6.78 times to 1.83 times from 2017 to 2018. The reduction was due to the
fact that the tax percentage increased more than the increase in the net
profit percentage

Current ratio that represents the liquidity position of the company is
indicating that the liquidity status of the company has been
deteriorated as the company’s current ratio reduced fro 2.92 to 2.90
over the period from 2017 to 2018.

Receivable turnover ratio of the company has been increased from 0.23 to
0.24. Increase in the receivables ratio is indicating that the company is
taking more time in collecting its dues from debtors. Hence, the
receivable position of the entity has been deteriorated over the years.

Trade payable ratio of the company has been stable at 0.22 over the years
from 2017 to 2018. it is indicating that the time taken by the company for
paying its payables due to the suppliers are maintained at the same rate
and payables are paid in regular interval.

Depreciation to capital expense ratio that represents the depreciation
expenses of the entity with regard to its capital expenses has been
increased by 68.03%. The reason behind it is that the depreciation
expenses has been increased, however, yearly capital expenditure

Asset turnover ratio that represents the ability of the entity to generate
sales from the assets has been increased from 0.39 to 0.43 over the years
from 2017 to 2018. It is representing that the efficiency of the entity has
been increased with regard to deployment of assets for generating sales.

Operating cash to the asset ratio that represents the cash from operation
against the assets amount is increased from 0.16 to 0.17. the increase was
due to increase in the amount of non-cash expenses that is depreciation and
amortization over the years from 2017 to 2018. it is representing that the cash
flow position of the entity is improved.

Cash expense towards investment activities to the asset ratio that
represents the cash expenses for investment against the assets amount
is reduced by 87.47%. The reduction was due to reduction in the
amount of investment purchase and plant and property purchase. It is
representing that the cash flow position of the entity is improved.

Cash expense towards financing activities to the asset ratio that represents
the cash expenses for financial purposes against the assets amount is
reduced by 486.33%. The reduction was due to reduction in the amount of
proceeds from debt issuance. It is representing that the cash flow position of
the entity is deteriorated.

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