As you know, a companys return on investment (or ROI) is the product of its margin and turnover. Financial analysts often compute and analyze a companys ROI by obtaining the required data from its annual report. Unfortunately, the analyst is usually unable to determine the precise amounts of the companys operating and non-operating assets. Although this obstacle is a limitation, the information is still useful to some extent. Search for an annual report on Form 10-K of each of the two companies listed below. If you just do a search on 10K Google and 10K Microsoft, you should find several sources for the 10K report for each. Google Inc. (choose the one with the Standard Industrial Code (SIC) of 7370) Microsoft Inc. (choose the one with the SIC of 7373) (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 companys performance, and then compare and contrast the performances of the two companies.

google

yahoo

Consolidated Statements of Income Data