I have attached all the datas, balance sheet, cashflow and income statement. Please help with 2.3 and the recommendation.
finance People Income Statement All numbers in thousands Expand All Symbol Breakdown 6/29/2018 6/29/2017 6/29/2016 6/29/2015 6/29/2014 AAPL Apple in 110,360,000 > Total Revenue 89,950,000 85,320,000 93,580,000 86,833,000 AMZN Amazon.co 38,353,000 34,261,000 Cost of Revenue 32.780,000 33,038,000 26.934,000 Gross Profit 72,007,000 55,689,000 52.540,000 60,542,000 59.899.000 INTC Intel Corpo > Operating Expense 36,949,000 33,057,000 31,248,000 32,370,000 32.013,000 GOOG Alphabet 35,058,000 22,632.000 21.292.000 28.172.000 27.886.000 Operating Income CSCO Caco Syste -2.733,000 2.222.000 - 1.243.000 -781,000 -597.000 > Net Non Operating interest in > Other Income Expense 4,149,000 2.739,000 -298.000 -8,884,000 531,000 Earning: 36.474.000 Pretax income 23,149,000 19.751,000 18,507.000 27.820,000 Conser Tax Provision 19.903.000 1.945,000 2,953,000 5,746,000 6,314,000 > Net Income Common Stockhold. 16,571,000 21,204,000 16,798,000 12,193,000 22,074,000 16.571,000 21,204,000 16.798,000 12.193,000 22,074,000 Diluted NI Available to Com Stock Basic EPS 0.0022 0.0027 0.0021 0.0015 0.0027 0.0021 0.0027 0.0021 0.0015 0.0026 7.700,000 7,746,000 7.925,000 8,177,000 8.299,000 Diluted EPS Basic Average Shares Diluted Average Shares Total Operating Income as Reported Total Expenses 7.794,000 7.832.000 8.013.000 8.254,000 8.399.000 35,058,000 22.326,000 20.182,000 18.161,000 27,759.000 04 2013 Beat by 3010 75,302,000 67 318.000 64,028,000 65,408,000 58.947.000 finance 04 35,058,000 27,759.000 22,326,000 20.182,000 18,161,000 Total Operating Income as Reported . by 67,318,000 75,302,000 64,028,000 65.408,000 58.947.000 Total Expenses 16,798,000 22.074,000 16,571,000 21,204,000 12.193,000 Fin Net Income from Continuing & Dis. 18.453,200 16,885,550 13,499,160 17,880,220 21,521.000 Ann Normalized Income Interest income 2.733.000 2.222.000 1.243,000 781,000 597,000 Interest Expense 10 140 130 120 110 TOD 0 50 70 -2.733,000 -2.222.000 -1.243,000 -597,000 -781,000 Net Interest Income 39,207.000 25,371,000 20,994,000 19,288,000 28,417.000 EBIT EBITDA 33,038,000 32.780,000 26,934.000 38,353,000 Reconciled Cost of Revenue 34,261,000 10,261,000 6,622.000 5.212,000 8,778,000 5.957.000 Reconciled Depreciation 16,798,000 22,074,000 12.193.000 16,571,000 21.204,000 Net Income from Continuing Oper... 2.990,000 4.208.000 103,000 -8,617.000 700.000 Total Unusual Items Excluding Goo 2,990,000 4,208,000 - 103,000 -8,617,000 700,000 Total Unusual Items 45,260,000 27,719.000 31.159,000 Normalized EBITDA 33.862,000 32,929.000 0 0 0 0 0 Tax Rate for Calcs 239.200 1,136,160 -15.450 -2,929,780 147,000 Tax Effect of Unusual items Annual Balance Sheet Cash Flow Quarterly Show: Income Statement Download Expand An Cash Flow All numbers in thousands 6/29/2016 6/29/2014 6/29/2018 6/29/2015 Breakdown 6/29/2017 29.080.000 32,231,000 2 33,325.000 43.884,000 39,507.000 Operating Cash Flow -6,061.000 -46.781.000 0 23,950,000 -23.001,000 -18,833,000 People Also Watch Symbol AAPL 122.72 Apple in AMZN 3,220.08 Amon cominc INTC 49.56 Intel Corporation GOOG 1.798.10 Abhabet ind CSCO 43 54 Cisco Systems, Inc > Investing Cash Flow 8,408,000 -33,590,000 -8.393.000 -9,080,000 -8.394,000 > Financing Cash Flow 8,669,000 5.595,000 > End Cash Position 11,946,000 7.663,000 6,510,000 5.944,000 -5.485.000 Capital Expenditure D -11632.000 -8,343,000 -8, 129,000 1.002.000 772,000 668,000 634,000 Issuance of Capital Stock 607,000 7.183,000 13,884,000 10.350.000 44,344,000 suance of Debt 10,680,000 Earnings > Consensus EPS -10,060,000 7,922.000 -2.796,000 3.BBB,000 - 1,500,000 Repayment of Debt -11,788,000 14443,000 0 -15,969,000 -7,316,000 -10,721.000 Repurchase of Capital Stock 26,746.000 Free Cash Flow 32252,000 > 23.136,000 31,378,000 24,982,000 . Expand All Balance Sheet All numbers in thousands 6/29/2017 6/29/2016 6/29/2015 6/29/2018 6/29/2014 Breakdown 241,086,000 258,848,000 193,694,000 176,223,000 172,384,000 > Total Assets 82,600,000 176,130,000 168,692,000 121,697,000 96,140,000 > Total Liabilities Net Minority int... 82,718,000 72.394,000 71.997.000 89.784,000 80,083,000 > Total Equity Gross Minority Inte... 154,960,000 148.467.000 112,780,000 107,891,000 110,429.000 Total Capitalization Preferred Stock Equity 82,718,000 71.997,000 89,784,000 72,394,000 80,083,000 Common Stock Equity Capital Lease Obligations 5,568,000 38,982,000 27.166,000 50,392,000 62,676,000 58,309,000 Net Tangible Assets 111,174,000 95,324,000 80,303,000 68,621,000 74,854,000 Working Capital Invested Capital 158,958,000 125,684,000 112,429,000 158,588.000 115,375,000 38,982,000 27,166,000 50,392,000 58,309,000 62,676,000 Tangible Book Value 81,808,000 53,687.000 22,645,000 86,194.000 35,292,000 Total Debt 78,531,000 64,294,000 47.177.000 29,697.000 13,976,000 Net Debt 7,677,000 7,708,000 7,808,000 8,239,000 8,027,000 Share issued 7.708,000 7,677,000 7,808,000 8,027,000 8.239,000 Ordinary Shares Number A A Untitled docum....docx Microsoft Corp...docx 8.013,000 8.254,000 8,399,000 yahoo Search for news, symbols or companies finance Diluted Average Shares 7,794,000 7,832,000 Total Operating Income as Reported 35,058,000 22,326,000 Total Expenses 75.302,000 67,318,000 Net Income from Continuing & Dis... 16,571,000 21.204,000 20.182,000 18,161,000 27.759.000 64,028,000 65,408,000 58,947.000 22,074,000 12.193,000 16,798,000 Fir 17,880.220 21,521,000 An 18.453,200 16,885,550 13.499,160 Normalized Income 1 Interest Income 597,000 2.733,000 2,222,000 1,243,000 781,000 Interest Expense -597,000 -2,733,000 -2,222,000 -1,243,000 -781,000 Net Interest Income 25.371,000 20.994.000 19,288,000 28,417,000 39,207,000 EBIT 13 12 11 100 9 80 70 GO 10 0 30 20 EBITDA 26,934,000 32,780,000 33,038,000 38,353,000 34,261,000 Reconciled Cost of Revenue 5.212.000 5,957.000 10,261,000 8,778,000 6,622,000 Reconciled Depreciation 21,204,000 16,798,000 12.193,000 22,074,000 16,571,000 Net Income from Continuing Oper... 2,990,000 -8.617,000 -103,000 4,208,000 700,000 Total Unusual Items Excluding Goo... 700,000 2,990,000 -8,617,000 4,208,000 - 103,000 Total Unusual Items 45,260,000 31,159,000 27,719,000 33,862,000 32,929,000 Normalized EBITDA 0 0 0 0 0 Tax Rate for Calcs 1940 2920 An 147 non 1126 150 229 200 Tay Effect of alltame A A Untitled docum....docx Microsoft Corp...docx 2017 2016 2015 2014 2018 Name of Ratio 1.5916 1.8329 2.0869 1.4291 Current Ratio 1.4696 2.44 2.31 2.44 2.44 2.85 Liquidity Ratio 24.696 47.599 Times Interest 14.345 11.418 16.889 Earned Ratio 13% 19.6% 25.56% 15% Gross Profit 24.8% % 1648 1052 . 1084 .1095 1515 Basic Earning Power 4 1 0.16 0.14 0.15 0.22 Return on 0.20 Capital Employed 0.24 0.3 0.15 0.20 0.23 Return on Shareholders Equity I Some of Microsoft's biggest competitors are Lenovo AWS, Google, IBM, Cisco, etc. Comparing the averages for microsoft and Lenovo which is their biggest competitor. In 2014 Lenovo was averaging about 38,707,129 in total revenue. Compared to Microsoft which was around the 86,000,000 in total revenue. In overall averages Microsoft was always leading Lenovo in the years of 2014-2018 2.3 Share Price Analysis Under the current situation, will you recommend to buy, hold, or sell the company's shares and why? You may want to discuss various measures of share price performance (i.e. stock market indicators/ratios). You may also consider other I factors/information that can potentially influence the company's share price. Calculate the intrinsic value using DCF Stock Market Indicators/Ratios Value of Ratio Earnings Per Share P/E ratio Dividend Per Share Dividend Cover Net Assets Per Share 3 Recommendation 1 Clearly state your first recommendation and what implications, if any, you think it will have on the following: Balance Sheet- Income Statement Cash Flow Statement Financial Ratios You should be specific in the details, and provide quantitative analysis. For example, if you recommended taking on $10,000m of long-term debt, what impact would this have? finance People Income Statement All numbers in thousands Expand All Symbol Breakdown 6/29/2018 6/29/2017 6/29/2016 6/29/2015 6/29/2014 AAPL Apple in 110,360,000 > Total Revenue 89,950,000 85,320,000 93,580,000 86,833,000 AMZN Amazon.co 38,353,000 34,261,000 Cost of Revenue 32.780,000 33,038,000 26.934,000 Gross Profit 72,007,000 55,689,000 52.540,000 60,542,000 59.899.000 INTC Intel Corpo > Operating Expense 36,949,000 33,057,000 31,248,000 32,370,000 32.013,000 GOOG Alphabet 35,058,000 22,632.000 21.292.000 28.172.000 27.886.000 Operating Income CSCO Caco Syste -2.733,000 2.222.000 - 1.243.000 -781,000 -597.000 > Net Non Operating interest in > Other Income Expense 4,149,000 2.739,000 -298.000 -8,884,000 531,000 Earning: 36.474.000 Pretax income 23,149,000 19.751,000 18,507.000 27.820,000 Conser Tax Provision 19.903.000 1.945,000 2,953,000 5,746,000 6,314,000 > Net Income Common Stockhold. 16,571,000 21,204,000 16,798,000 12,193,000 22,074,000 16.571,000 21,204,000 16.798,000 12.193,000 22,074,000 Diluted NI Available to Com Stock Basic EPS 0.0022 0.0027 0.0021 0.0015 0.0027 0.0021 0.0027 0.0021 0.0015 0.0026 7.700,000 7,746,000 7.925,000 8,177,000 8.299,000 Diluted EPS Basic Average Shares Diluted Average Shares Total Operating Income as Reported Total Expenses 7.794,000 7.832.000 8.013.000 8.254,000 8.399.000 35,058,000 22.326,000 20.182,000 18.161,000 27,759.000 04 2013 Beat by 3010 75,302,000 67 318.000 64,028,000 65,408,000 58.947.000 finance 04 35,058,000 27,759.000 22,326,000 20.182,000 18,161,000 Total Operating Income as Reported . by 67,318,000 75,302,000 64,028,000 65.408,000 58.947.000 Total Expenses 16,798,000 22.074,000 16,571,000 21,204,000 12.193,000 Fin Net Income from Continuing & Dis. 18.453,200 16,885,550 13,499,160 17,880,220 21,521.000 Ann Normalized Income Interest income 2.733.000 2.222.000 1.243,000 781,000 597,000 Interest Expense 10 140 130 120 110 TOD 0 50 70 -2.733,000 -2.222.000 -1.243,000 -597,000 -781,000 Net Interest Income 39,207.000 25,371,000 20,994,000 19,288,000 28,417.000 EBIT EBITDA 33,038,000 32.780,000 26,934.000 38,353,000 Reconciled Cost of Revenue 34,261,000 10,261,000 6,622.000 5.212,000 8,778,000 5.957.000 Reconciled Depreciation 16,798,000 22,074,000 12.193.000 16,571,000 21.204,000 Net Income from Continuing Oper... 2.990,000 4.208.000 103,000 -8,617.000 700.000 Total Unusual Items Excluding Goo 2,990,000 4,208,000 - 103,000 -8,617,000 700,000 Total Unusual Items 45,260,000 27,719.000 31.159,000 Normalized EBITDA 33.862,000 32,929.000 0 0 0 0 0 Tax Rate for Calcs 239.200 1,136,160 -15.450 -2,929,780 147,000 Tax Effect of Unusual items Annual Balance Sheet Cash Flow Quarterly Show: Income Statement Download Expand An Cash Flow All numbers in thousands 6/29/2016 6/29/2014 6/29/2018 6/29/2015 Breakdown 6/29/2017 29.080.000 32,231,000 2 33,325.000 43.884,000 39,507.000 Operating Cash Flow -6,061.000 -46.781.000 0 23,950,000 -23.001,000 -18,833,000 People Also Watch Symbol AAPL 122.72 Apple in AMZN 3,220.08 Amon cominc INTC 49.56 Intel Corporation GOOG 1.798.10 Abhabet ind CSCO 43 54 Cisco Systems, Inc > Investing Cash Flow 8,408,000 -33,590,000 -8.393.000 -9,080,000 -8.394,000 > Financing Cash Flow 8,669,000 5.595,000 > End Cash Position 11,946,000 7.663,000 6,510,000 5.944,000 -5.485.000 Capital Expenditure D -11632.000 -8,343,000 -8, 129,000 1.002.000 772,000 668,000 634,000 Issuance of Capital Stock 607,000 7.183,000 13,884,000 10.350.000 44,344,000 suance of Debt 10,680,000 Earnings > Consensus EPS -10,060,000 7,922.000 -2.796,000 3.BBB,000 - 1,500,000 Repayment of Debt -11,788,000 14443,000 0 -15,969,000 -7,316,000 -10,721.000 Repurchase of Capital Stock 26,746.000 Free Cash Flow 32252,000 > 23.136,000 31,378,000 24,982,000 . Expand All Balance Sheet All numbers in thousands 6/29/2017 6/29/2016 6/29/2015 6/29/2018 6/29/2014 Breakdown 241,086,000 258,848,000 193,694,000 176,223,000 172,384,000 > Total Assets 82,600,000 176,130,000 168,692,000 121,697,000 96,140,000 > Total Liabilities Net Minority int... 82,718,000 72.394,000 71.997.000 89.784,000 80,083,000 > Total Equity Gross Minority Inte... 154,960,000 148.467.000 112,780,000 107,891,000 110,429.000 Total Capitalization Preferred Stock Equity 82,718,000 71.997,000 89,784,000 72,394,000 80,083,000 Common Stock Equity Capital Lease Obligations 5,568,000 38,982,000 27.166,000 50,392,000 62,676,000 58,309,000 Net Tangible Assets 111,174,000 95,324,000 80,303,000 68,621,000 74,854,000 Working Capital Invested Capital 158,958,000 125,684,000 112,429,000 158,588.000 115,375,000 38,982,000 27,166,000 50,392,000 58,309,000 62,676,000 Tangible Book Value 81,808,000 53,687.000 22,645,000 86,194.000 35,292,000 Total Debt 78,531,000 64,294,000 47.177.000 29,697.000 13,976,000 Net Debt 7,677,000 7,708,000 7,808,000 8,239,000 8,027,000 Share issued 7.708,000 7,677,000 7,808,000 8,027,000 8.239,000 Ordinary Shares Number A A Untitled docum....docx Microsoft Corp...docx 8.013,000 8.254,000 8,399,000 yahoo Search for news, symbols or companies finance Diluted Average Shares 7,794,000 7,832,000 Total Operating Income as Reported 35,058,000 22,326,000 Total Expenses 75.302,000 67,318,000 Net Income from Continuing & Dis... 16,571,000 21.204,000 20.182,000 18,161,000 27.759.000 64,028,000 65,408,000 58,947.000 22,074,000 12.193,000 16,798,000 Fir 17,880.220 21,521,000 An 18.453,200 16,885,550 13.499,160 Normalized Income 1 Interest Income 597,000 2.733,000 2,222,000 1,243,000 781,000 Interest Expense -597,000 -2,733,000 -2,222,000 -1,243,000 -781,000 Net Interest Income 25.371,000 20.994.000 19,288,000 28,417,000 39,207,000 EBIT 13 12 11 100 9 80 70 GO 10 0 30 20 EBITDA 26,934,000 32,780,000 33,038,000 38,353,000 34,261,000 Reconciled Cost of Revenue 5.212.000 5,957.000 10,261,000 8,778,000 6,622,000 Reconciled Depreciation 21,204,000 16,798,000 12.193,000 22,074,000 16,571,000 Net Income from Continuing Oper... 2,990,000 -8.617,000 -103,000 4,208,000 700,000 Total Unusual Items Excluding Goo... 700,000 2,990,000 -8,617,000 4,208,000 - 103,000 Total Unusual Items 45,260,000 31,159,000 27,719,000 33,862,000 32,929,000 Normalized EBITDA 0 0 0 0 0 Tax Rate for Calcs 1940 2920 An 147 non 1126 150 229 200 Tay Effect of alltame A A Untitled docum....docx Microsoft Corp...docx 2017 2016 2015 2014 2018 Name of Ratio 1.5916 1.8329 2.0869 1.4291 Current Ratio 1.4696 2.44 2.31 2.44 2.44 2.85 Liquidity Ratio 24.696 47.599 Times Interest 14.345 11.418 16.889 Earned Ratio 13% 19.6% 25.56% 15% Gross Profit 24.8% % 1648 1052 . 1084 .1095 1515 Basic Earning Power 4 1 0.16 0.14 0.15 0.22 Return on 0.20 Capital Employed 0.24 0.3 0.15 0.20 0.23 Return on Shareholders Equity I Some of Microsoft's biggest competitors are Lenovo AWS, Google, IBM, Cisco, etc. Comparing the averages for microsoft and Lenovo which is their biggest competitor. In 2014 Lenovo was averaging about 38,707,129 in total revenue. Compared to Microsoft which was around the 86,000,000 in total revenue. In overall averages Microsoft was always leading Lenovo in the years of 2014-2018 2.3 Share Price Analysis Under the current situation, will you recommend to buy, hold, or sell the company's shares and why? You may want to discuss various measures of share price performance (i.e. stock market indicators/ratios). You may also consider other I factors/information that can potentially influence the company's share price. Calculate the intrinsic value using DCF Stock Market Indicators/Ratios Value of Ratio Earnings Per Share P/E ratio Dividend Per Share Dividend Cover Net Assets Per Share 3 Recommendation 1 Clearly state your first recommendation and what implications, if any, you think it will have on the following: Balance Sheet- Income Statement Cash Flow Statement Financial Ratios You should be specific in the details, and provide quantitative analysis. For example, if you recommended taking on $10,000m of long-term debt, what impact would this have
