Financial Leverage

Microsoft Corporation (MSFT) reported the following data (in millions) for a recent year:

Sales		$ 93,580
Operating income		12,193
Average total assets		174,304
Average stockholders equity		84,934

1. Compute the return on total assets. Round to one decimal place. %

2. Compute the return on stockholders equity. Round to one decimal place. %

3. Compute the profit margin, asset turnover, and financial leverage metrics using the expanded DuPont formula. Round profit margin, asset turnover, and financial leverage to two decimal places. Round return on stockholders equity to one decimal place.

Profit margin			%
Asset turnover
Financial leverage
Return on stockholders equity			%

4. Apple Inc. has a financial leverage metric of 2.26. Does Apple or Microsoft use more financial leverage in its operations?