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Using the following comparative financial statements of Microsoft Corporation for the years 2020, 2021, and 2022, answer the questions below: 2020 2021 2022 Revenue $143,015

Using the following comparative financial statements of Microsoft Corporation for the years 2020, 2021, and 2022, answer the questions below:


2020

2021

2022

Revenue

$143,015

$168,088

$192,557

Cost of Revenue

$46,078

$52,232

$57,651

Gross Profit

$96,937

$115,856

$134,906

Operating Expenses

$35,056

$43,076

$47,800

Operating Income

$61,881

$72,780

$87,106

Net Income

$44,281

$61,271

$72,731



2020

2021

2022

Total Assets

$301,311

$333,779

$364,840

Total Liabilities

$183,007

$191,791

$198,528

Shareholders' Equity

$118,304

$141,988

$166,312

Requirements:

  1. Calculate the operating profit margin for each year.
  2. Determine the net profit margin for each year.
  3. Calculate the return on assets (ROA) for each year.
  4. Compute the return on equity (ROE) for each year.
  5. Discuss the overall financial health and performance of Microsoft Corporation over these years.

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