Scenario 32: Financial Ratios - Microsoft Corporation

Microsoft Corporation has provided the following financial data for the fiscal year ended June 30, 2023:

• Total Assets: $340,285 million
• Total Liabilities: $148,627 million
• Net Income: $63,813 million
• Total Revenue: $201,452 million
• Total Expenses: $137,639 million
• Average Shareholders' Equity: $191,658 million

Calculate the following financial ratios for Microsoft Corporation:

a) Return on Assets (ROA) b) Return on Equity (ROE) c) Debt-to-Equity Ratio d) Gross Profit Margin e) Net Profit Margin

Interpret each ratio and discuss the financial performance of Microsoft Corporation based on these ratios.