Choose two companies in the same industry whose financial statements are available online. Complete several financial ratios for each company and compare them. Share your analysis and answer the following questions. What did your analysis tell you about these companies What sorts of decisions would this analysis help you make; such as buying stocks, considering accepting an employment offer,etc.?

The financial ratios for the two companies using their latest annual reports are: Apple and Microsoft.

Revenue

Apple annual revenue for 2019 was $260.174B, a 2.04% decline from 2018.

Microsoft annual revenue for 2019 was $125.843B, a 14.03% increase from 2018.

Gross Profit

Apple annual gross profit for 2019 was $98.392B, a 3.38% decline from 2018.

Microsoft annual gross profit for 2019 was $82.933B, a 15.17% increase from 2018.

Operating Income

Apple annual operating income for 2019 was $63.93B, a 9.83% decline from 2018.

Microsoft annual operating income for 2019 was $42.959B, a 22.54% increase from 2018.

Net Income

Apple annual net income for 2019 was $55.256B, a 7.18% decline from 2018.

Microsoft annual net income for 2019 was $39.24B, a 136.8% increase from 2018.

Debt/Equity Ratio

Apple debt/equity for the three months ending December 31, 2019 was 1.04.

Microsoft debt/equity for the three months ending December 31, 2019 was 0.64.

ROE (return on equity)

Apple ROE for the three months ending December 31, 2019 was 60.19%.

Microsoft ROE for the three months ending December 31, 2019 was 40.41%.

ROA (return on asset)

Apple ROA for the three months ending December 31, 2019 was 17.13%.

Microsoft ROA for the three months ending December 31, 2019 was 15.03%.