Question
1. What accounts changed for the period and how did this affect the financial analysis calculation? 2. Why did the account change during the period?
1. What accounts changed for the period and how did this affect the financial analysis calculation?
2. Why did the account change during the period? Explain what business decisions may have caused the change.
DATA (down below)
| Liquidity Ratios | Microsoft | |||
| Short-Term Debt Paying Ratios | 6/30/2020 | 6/30/2109 | 6/30/2108 | 6/30/2017 |
| Working Capital | $ 119,609.00 | $ 118,627.00 | $ 115,557.00 | $120,583.00 |
| Current Ratio | 2.919702757 | 3.083917435 | 3.299001273 | 3.86332011 |
| Acid Test Ratio | 1.14258132 | 1.07889735 | 0.995966416 | 0.99572991 |
| Cash Ratio | 0.217892338 | 0.199490558 | 0.160313544 | 0.18196281 |
| Long-Term Solvency or Financial Leverage | ||||
| Times Interested Earned | -1.360864531 | -0.712583768 | 1.045005488 | -1.00630063 |
| Fixed Charge Coverage | $ 1.97 | $ 1.90 | $ 1.88 | $ 1.74 |
| Debt Ratio | $ 0.68 | $ 0.74 | $ 0.89 | $ 1.35 |
| Debt: Equity Ratio | 1.31012488 | 1.545818051 | 1.927019432 | 1.85810606 |
| Asset Utilization or Turnover Ratios | ||||
| Inventory turnover | 10.16833773 | 8.180319922 | 5.531930879 | 5.97753324 |
| Days Sales in Inventory | 15.01095968 | 17.5482405 | 25.33387219 | 23.2353113 |
| Receivables Turnover | 3.028240292 | 2.809002845 | 2.719194894 | 2.77785208 |
| Days Sales in Receivables | 120.5320466 | 129.9393486 | 134.2309081 | 131.396485 |
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Accounting Understanding And Practice
Authors: Robert Perks
4th Edition
0077139135, 978-0077139131
