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As you know, a company*s return on investment {or ROI] is the product of its margin and turnover. Financial analysts often compute and analyze a
As you know, a company*s return on investment {or ROI] is the product of its margin and turnover. Financial analysts often compute and analyze a com pa ny's ROI by obtaining the required data from its annual report. Unfortunately, the analyst is usually unable to determine the precise amounts of the company's operating and nonoperating assets. Although this obstacle is a limitation, the information is still useful to some extent. Search for an annual report on Form it'll-K of each of the two companies listed below. If you just do a search on 10K Googie and 10!; Microsoft, you should nd several sources for the 10K report for each. . lGoogle Inc. [choose the one with the Standard Industrial |Code {SIC} of EM) - Microsoft Inc. {choose the one with the SIC of HTS) . (You can substitute Microsoft or Apple, if you have a partiCular interest} Using data from the two most recent annual reports of these two companies, compute the margin, turnover, and ROI for each company for the two most recent fiscal years. After reviewing the ratios, briefly discuss each companfs performance, and then compare and contrast the performances of the two companies
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