1. Based on the information you acquired, which firm is healthier? Why? If you are an investor, which company would you invest in?

Please, give a comparison of the two firms and why you chose one over the other.

Current Ratio Current Assets Current Liabilities Microsoft's Current Ratio (2017) = 162,696 / 55,745 = 2.92 Microsoft's Current Ratio (2018) = 169,662 / 58,488 = 2.90 Google's Current Ratio (2017) = 124,308 / 24,183 = 5.14 Google's Current Ratio (2018) = 135,676/34,620 = 3.92 Debt to Equity Ratio Total Liabilities Total Stockholders' Equity Microsoft's Debt to Equity Ratio (2017) = 162,601 / 87,711 = 1.9 Microsoft's Debt to Equity Ratio (2018) = 176,130 / 82,718 = 2.1 Google's Debt to Equity Ratio (2017) = 44,793 / 152,502 = 0.29 Google's Debt to Equity Ratio (2018) = 55,164 / 177,628 = 0.31 Asset turnover ratio Sales Revenue Total (or net)Assets Microsoft's Asset Turnover Ratio (2017) = 96,571 / 250,312 = 0.39 Microsoft's Asset Turnover Ratio (2018) = 110,360 / 258,848 = 0.43 Google's Asset Turnover Ratio (2017) = 110,855 / 197,295 = 0.56 Google's Asset Turnover Ratio (2018) = 136,819 / 232,792 = 0.59 e) Profit Margin - The net profit margin is equal to how much net income or profit is generated as a percentage of revenue. Net profit margin is the ratio of net profits to revenues for a company or business segment. Net profit margin is typically expressed as a percentage but can also be represented in decimal form. Profit Margin Ratio = Net Profit Revenue x 100 Microsoft's Profit Margin Ratio (2017) = (25,489 / 96,571) x 100 = 26% Microsoft's Profit Margin Ratio (2018) = (16,571 / 82,718) x 100 = 15% Google's Profit Margin Ratio (2017) = (12,662 / 110,855) x 100 = 11% Google's Profit Margin Ratio (2018) = (30,736 / 136,819) x 100 = 22% ROE = Net Income x 100 Shareholders' Equity Microsoft's ROE (2017) = (25,489 / 87,711) x 100 = 29% Microsoft's ROE (2018) = (16,571 / 82,718) x 100 = 20% Google's ROE (2017) = (12,662 / 152,502) x 100 = 8.3% Google's ROE (2018) = (30,736 / 177,628) x 100 = 17% Net Income ROA = x 100 Total Assets Microsoft's ROA (2017) = (25,489 / 250,312) x 100 = 10% Microsoft's ROA (2018) = (16,571 / 258,848) x 100 = 6.4% Google's ROA (2017)= (12,662 / 197,295) x 100 = 6.4% Google's ROA (2018)= (30,736 / 232,792) x 100 = 13% DuPont Analysis = Net Profit Margin x AT EM Microsoft Year = Profit Margin x Total Asset Turnover x Equity Multiplier 2.9 2017 29% 26% X 0.39 X 2018 20% 15% X 0.43 X 3.1 Year = Google Profit Margin x Total Asset Turnover 11% X 0.56 x Equity Multiplier 2017 8.0% X 1.3 2018 17% 22% X 0.59 X 1.3