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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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