The comparison of the ratios is an important part of the project. A good approach is to briefly explain what the ratio tells us. Indicate whether a higher or lower ratio is better. Then compare the two companies on this basis. Remember that each ratio below requires a comparison.

		Apple, Inc	Microsoft, Inc
		6/30/2021			9/25/2021
Earnings per Share of Common Stock (basic - common)	As given in the income statement			$ 5.67			$8.12
Current Ratio	Current assets	$134,836	=	1.07	$184,406	=	2.08
	Current liabilities	$125,481			$88,657
Gross Profit Rate	Gross profit	$152,836	=	41.8%	$115,856	=	68.9%
	Net sales	$365,817			$168,088
Profit Margin	Net income	$94,680	=	25.9%	$61,271	=	36.5%
	Net sales	$365,817			$168,088
Inventory Turnover	Cost of goods sold	$212,981	=	40.0	$52,232		23.1
	Average inventory	$5,321			$2,266
Days in Inventory	365 days	365	=	9	365	=	16
	Inventory turnover	40.0		days	23.1		days
Accounts Receivable Turnover	Net credit sales	$365,817	=	17.3	$168,088	=	4.8
	Average net accounts receivable	$21,199			$35,027
Average Collection Period	365 days	365	=	21	365	=	76
	Accounts receivable turnover	17.3		days	4.8		days
Asset turnover	Net sales	$365,817	=	1.08	$168,088	=	0.53
	Average total assets	$337,445			$317,545
Return on Assets (ROA)	Net income	$94,680	=	28.1%	$61,271	=	19.3%
	Average total assets	$337,445			$317,545
Debt to assets ratio	Total Liabilities	$287,912	=	82.0%	$191,791	=	57.5%
	Total Assets	$351,002			$333,779
Times-Interest Earned Ratio	Net income + interest expense + income tax expense	$111,852	=	42.3	73,448	=	31.3
	interest expense	$2,645			2,346
Dividend Yield	Dividend per share of common stock	$0.85	=	0.6%	$2.24	=	0.8%
(Please follow the Course Project instructions to calculate the current dividend yield.)	Market price per share of common stock	$146.92			$270.90
Return on Common Stockholders' Equity (ROE)	Net income - preferred dividends	94680.00	=	147.4%	61,271	=	47.1%
	Average common stockholders' equity	64,214.50			130,146.00
Free cash flow	Net cash provided by operating activities minus capital expenditures minus cash dividends		=	$78,486		=	$39,597
				in millions			in Millions
Price-Earnings Ratio	Market price per share of common stock (24th September price for Apple and 30th June price for Microsoft)	$146.92	=	26	$270.90	=	33
(Please see the Course Project instructions for the dates to use for this ratio.)	Earnings per share	$5.67			$8.12