Question
Liquidity Ratios Debt Management Ratios Profitability Ratios Market Value Ratio Current Ratio Days Sales in Receivables Debt/Equity Long Term Debt/Capital Return on Assets Return on
Liquidity Ratios | Debt Management Ratios | Profitability Ratios | Market Value Ratio | ||||||||||||||||||||||||||||||
Current Ratio | Days Sales in Receivables | Debt/Equity | Long Term Debt/Capital | Return on Assets | Return on Equity | Net Profit Margin | PE Ratio | ||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 4Q2022 | 3Q2022 | 2QTR2022 | 1QTR2022 | 4Q2021 | 3Q2021 | 2Q2021 | 1Q2021 | 4Q2020 | 3Q2020 | 2Q2020 | 1Q2020 | |
Microsoft | 1.7846 | 2.08 | 2.5158 | 81.4811 | 82.6097 | 81.6978 | 0.2989 | 0.4095 | 0.5353 | 0.2202 | 0.2607 | 0.3349 | 19.937 | 18.3568 | 14.6961 | 43.6755 | 43.1522 | 37.4298 | 36.6863 | 36.4517 | 30.9625 | 35.27 | 25.03 | 28.08 | 34.39 | 38.25 | 33.21 | 31.63 | 27.24 | 27.89 | 28.09 | 39.82 | 25.62 |
Adobe | 1.1068 | 1.2506 | 0.2369 | 42.8107 | 43.4254 | 39.6542 | 0.2939 | 0.2786 | 0.3104 | 0.2053 | 0.2179 | 0.2369 | 17.5078 | 17.7013 | 21.6604 | 33.8481 | 32.5877 | 39.6562 | 27.0135 | 30.548 | 40.8766 | 34.15 | 36.83 | 40.67 | 46.44 | 66.85 | 54.9 | 43.72 | 40.01 | 44.14 | 64.66 | 51 | 52.29 |
Intuit | 1.3904 | 1.9424 | 2.2613 | 15.4593 | 19.4758 | 7.6527 | 0.4205 | 0.2061 | 0.6598 | 0.2807 | 0.1709 | 0.2846 | 7.4493 | 13.2895 | 16.7048 | 12.5662 | 20.8937 | 35.7619 | 16.2345 | 21.4056 | 23.7791 | 64.94 | 62.68 | 47.22 | 70.33 | 82.13 | 70.09 | 52.29 | 54 | 41.67 | 43.6 | 52.32 | 44.51 |
Synopsys | 1.0858 | 1.1636 | 1.1913 | 57.1821 | 49.3562 | 80.528 | 0.0038 | 0.0189 | 0.026 | 0.0038 | 0.0047 | 0.0201 | 10.3889 | 8.6419 | 8.262 | 17.7236 | 14.2738 | 13.5057 | 19.3759 | 18.0181 | 18.027 | 46.44 | 55.77 | 44.6 | 53.72 | 69.12 | 60 | 47.97 | 55.29 | 50.2 | 49.31 | 51.18 | 47.13 |
Cadence Design Sys. | 1.7666 | 1.8556 | 1.7391 | 41.2358 | 46.0502 | 47.5788 | 0.1268 | 0.1391 | 0.1645 | 0.1126 | 0.1221 | 0.1413 | 15.8666 | 14.95 | 29.4582 | 25.3936 | 23.6919 | 47.0294 | 23.2898 | 22.0152 | 42.3307 | 57.55 | 53.77 | 61.6 | 74.84 | 61.06 | 56.3 | 58.54 | 64.66 | 27.7 | 26.44 | 18.66 | 19.65 |
Using data from
https://www.macrotrends.net/
Provide 3 years worth of analysis (through the latest period available) of key liquidity, debt management and profitability ratios for Microsoft relative to its four peers. Make certain you cover:
Analysis of ratios evolution over time.
Analysis of Microsoft ratios year by year relative to peers.
Analysis of Microsoft ratios compared to peers based on 3 years averages.
Note 1: for 'key ratios', choose:
At least two liquidity ratios and explain why you chose this specific ratio over others;
At least two debt management ratios and, again, explain you choice of these two specific ratios;
At least two prfitability ratios, explaining your choice; and
At least one market value ratio.
Note 2: it is up to you to choose Microsoft's four peers, but you should explain and justify your selection.
Does analysis of the above ratios justify Microsoft's shares performance relative to market over the last two years (use Nasdaq Composite for market)? Why? Why not?
Does Microsoft ratios analysis highlight any significant areas of concern from potential investors' point of view? Note: think of what past history of ratios you summarized imply about future Microsoft stock valuations.
Explain your answers.
Remember to use visualizations in your analysis.
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