Oracle is one of the leading companies in the software and hardware industry. Oracle develops, manufactures and distributes various kinds of software and hardware systems worldwide. The company was founded in 1977 and is headquartered in Redwood City, California. Oracle currently has about 108,000 full-time employees worldwide. Microsoft Corporation develops, manufactures and distributes a range of software products and services for various computing devices worldwide. Microsoft also manufactures gaming systems such as Xbox 360 and related entertainments systems. Microsoft was founded in 1975 and is headquartered in Redmond, Washington. Microsoft currently employs about 90,000 full-time employees worldwide. Liquidity: Tootsie …show more content…
Microsoft’s Return of Assets Ratio of 21.2% is better than Oracle’s 13.4%. Finally, Microsoft’s Return on Common Stockholder’s Equity Ratio of 39.5% is better than Oracle’s 26.8%. However, Oracle does have a higher Price/Earnings Ratio of 23 vs. Microsoft’s 20 which means that the stock market is more optimistic about Oracle’s future prospects. However, the P/E Ratio of Oracle is not significantly higher than Microsoft so Microsoft still is a better company given all their Profitability ratios. Conclusion: Tootsie Roll is the safer investment when you examine the liquidity and solvency ratios; however, Hershey has the edge for two significant profitability ratios. These ratios are return on common stockholders' equity and the payout ratio. The stock market also is more optimistic about the future of Hersheys. That said, I would invest in Tootsie Roll because of their fiscal strength. Conclusion: Microsoft is the safer investment when you examine the liquidity and solvency ratios. Also, Microsoft has the clear advantage when you look at the profitability ratios of both companies. The stock market is more optimistic about the future of Oracle given the P/E ratio however Microsoft’s P/E ratio is not much lower than Oracle’s. Hence, I would certainly invest in Microsoft because of their fiscal
1. What are the factors that likely explain the difference between Microsoft’s market value of equity and its reported book value of equity?
Disney used the character of Mickey Mouse and others to create movies that customers enjoyed like “Beauty and the Beast” while Pixar was producing made up animated characters to create films like “Cars” and “Wall-E”. Disney was creating animated movies but struggling to generate the amount of money Pixar was making on producing only one movie a year. Disney wanted to grow in creating more animated movies and decided to buy out Pixar in 2006 for $7.4 million dollars. (Barnes, 2008) According to Disney’s CEO Robert
Microsoft has grown into an enormous and powerful corporation by a combination of aggressive business practices and having written operating systems (DOS and Windows) for personal computers. From operating systems it branched out into other software which has, along with the operating system, become something of an industry standard.
Overall Tootsie Roll has better liquidity. Liquidity measures the short-term ability to pay obligations as they are expected to be due within the next year.
Microsoft is in an industry that makes it more difficult to apply DuPont analysis averages to determine its financial health. Microsoft obviously operates
Microsoft was founded in 1975, and is the worldwide leader in software, services, and solutions (Career). Microsoft is proud to offer great products and employ outstanding people. Previous Microsoft CEO, Steve Ballmer once said, “There are many things that are true about Microsoft. We have big goals, big dreams, and big aspirations for the future. We are both competitive with our products and in the way we attract and retain talent. For me, the most important factor is competition for talent, because I know our success comes from the people who work here” (Foley).
I believe that Microsoft would be the best long-term investment. We sold this stock because it was making the most money. At first we were reluctant to invest in Microsoft because Microsoft is not what I think of when I think of technology. However, after researching the stock Microsoft had lost some of its popularity to Apple and Google, but it is on the rise again. Also, it never completely dwindled out like a lot of stocks do. I felt better about buying the stock because it had remained stable and has managed to compete with its leading competitors. We did manage to make money of Microsoft, but I believe we could make a lot more long-term. Over the past year Microsoft has gone up in the stock market. I believe it will continue to go up and the competition will begin to go down. I feel like Microsoft is more sustainable than Apple or Google because they are newer, so the new phase will wear off.
Little evidence exists about the means by which each company measures its success. All three; however, use profitability as a primary measure, in terms of value to their stockholders. To that end, a comparison of the gross profit, number of employees, gross and net profit per employee can be instructive in understanding each company. However, before putting too much stock in these numbers, one must consider that Microsoft has been around for longer than Google and Amazon, and specialized in the software market for far longer. So as expected, Microsoft is quite a bit more profitable, in looking at its raw gross profits. However, when looking at the gross profit
Which company is performing better based on profitability ratios? Based on a comparison of the profitability ratios between Apple Incorporated and Microsoft Corporation, Microsoft is performing better than Apple. Microsoft’s profit margin is higher than Apple’s and did not experience the decrease that apple did. While Microsoft does have lower returns on assets and equity than Apple, Microsoft was more stable between 2012 and 2014, and did not suffer the same decreases in these ratios that Apple did. Since Microsoft increased their profit margin and was a more stable company, I would argue that it is the better company.
Attached is an Income Statement from 2005 to 2007 (Microsoft Corporation Annual Report, 2008). As you can see, revenues and net income have continued to increase over the years. Earnings per share have increased as well. This shows that Microsoft is in a good financial standing. This means they are able to pay their shareholders and increase what they
Based off trading activity in the prior six months and the current share price relative to its 52 week-price range, investors are most likely viewing Microsoft
Oracle Corporation is a technology company that supplies software for the use of information management. They develop, manufacture, market and distribute computer software that helps other corporations manage their data so they can better grow and prosper.
This assignment tries to assess the current market status of Microsoft Corporation. As well this assignment will try to assess its current market position as per its business units, functionality, and also its different operations sectors as well its strategies for its rivals. Also this assignment will do financial comparative analysis study and benchmarking with nearest rivals like apple Inc., Google Corporation and Oracle Inc. and will applied to discover key factors for proposed area of developments and further improvements. Here the analysis tools like Porter 8-force analysis, PESTEL-analysis will be applied and the expected outcomes of analysis and benchmarking with nearest rivals will be incorporated in an analysis of
and Schlumberger has a 2010 current ratio of 1.67. Therefore, Halliburton is in a better financial
Microsoft has been around since 1975 and are famous for their computer operating systems called Windows. Windows was the first operating system that featured a Graphical User Interface that allowed the average Joe to use a computer with relative ease. Before windows if you wanted to do anything with a computer you had to have a great deal of