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What are the Market Value Leverage Ratios (Value of Debt to Value of Equity, Value of Debt to Value of Assets)) for the following financial
What are the Market Value Leverage Ratios (Value of Debt to Value of Equity, Value of Debt to Value of Assets)) for the following financial data?
| MICROSOFT CORP BALANCE SHEET | ||
| 2014 | 2015 | |
| Assets | ||
| Cash | ||
| Cash and cash equivalents | $8,669 | $5,595 |
| Short-term investments | $77,040 | $90,931 |
| Total cash | $85,709 | $96,526 |
| Receivables | $19,544 | $17,908 |
| Inventories | $2,660 | $2,902 |
| Deferred income taxes | $1,941 | $1,915 |
| Other current assets | $4,392 | $5,461 |
| Total current assets | $114,246 | $124,712 |
| Non-current assets | ||
| Gross property, plant and equipment | $27,804 | $32,337 |
| Accumulated Depreciation | -$14,793 | -$17,606 |
| Net property, plant and equipment | $13,011 | $14,731 |
| Equity and other investments | $14,597 | $12,053 |
| Goodwill | $20,127 | $16,939 |
| Intangible assets | $6,981 | $4,835 |
| Other long-term assets | $3,422 | $2,953 |
| Total non-current assets | $58,138 | $51,511 |
| Total assets | $172,384 | $176,223 |
| Liabilities and stockholders' equity | ||
| Liabilities | ||
| Current liabilities | ||
| Short-term debt | $2,000 | $7,484 |
| Accounts payable | $7,432 | $6,591 |
| Taxes payable | $782 | $606 |
| Accrued liabilities | $4,797 | $5,096 |
| Deferred revenues | $23,150 | $23,223 |
| Other current liabilities | $7,464 | $6,858 |
| Total current liabilities | $45,625 | $49,858 |
| Non-current liabilities | ||
| Long-term debt | $20,645 | $27,808 |
| Deferred taxes liabilities | $2,728 | $2,835 |
| Deferred revenues | $2,008 | $2,095 |
| Other long-term liabilities | $11,594 | $13,544 |
| Total non-current liabilities | $36,975 | $46,282 |
| Total liabilities | $82,600 | $96,140 |
| Stockholders' equity | ||
| Common stock | $68,366 | $68,465 |
| Retained earnings | $17,710 | $9,096 |
| Accumulated other comprehensive income | $3,708 | $2,522 |
| Total stockholders' equity | $89,784 | $80,083 |
| Total liabilities and stockholders' equity | $172,384 | $176,223 |
| MICROSOFT CORP INCOME STATEMENT | ||
| (USD in millions except per share data) | 2014 | 2015 |
| Revenue | $86,833 | $93,580 |
| Cost of revenue | $26,934 | $33,038 |
| Gross profit | $59,899 | $60,542 |
| Operating expenses | ||
| Research and development | $11,381 | $12,046 |
| Sales, General and administrative | $20,632 | $20,324 |
| Restructuring, merger and acquisition | $127 | $0 |
| Other operating expenses | $0 | $10,011 |
| Total operating expenses | $32,140 | $42,381 |
| Operating income | $27,759 | $18,161 |
| Interest Expense | $597 | $781 |
| Other income (expense) | $658 | $1,127 |
| Income before taxes | $27,820 | $18,507 |
| Provision for income taxes | $5,746 | $6,314 |
| Net income from continuing operations | $22,074 | $12,193 |
| Net income | $22,074 | $12,193 |
| Net income available to common shareholders | $22,074 | $12,193 |
| Earnings per share | ||
| Basic | $2.66 | $1.49 |
| Diluted | $2.63 | $1.48 |
| Weighted average shares outstanding | ||
| Basic | $8,299 | $8,177 |
| Diluted | $8,399 | $8,254 |
| EBITDA | $33,629 | $25,245 |
| MICROSOFT CORP CASH FLOW STATEMENT | ||
| (USD in millions except per share data) | 2014 | 2015 |
| Cash Flows From Operating Activities | ||
| Net income | $22,074 | $12,193 |
| Depreciation & amortization | $5,212 | $5,957 |
| Investment/asset impairment charges | $0 | $7,498 |
| Investments losses (gains) | -$109 | -$443 |
| Deferred income taxes | -$331 | $224 |
| Stock based compensation | $2,446 | $2,574 |
| Accounts receivable | -$1,120 | $1,456 |
| Inventory | -$161 | -$272 |
| Accounts payable | $473 | -$1,054 |
| Other working capital | $1,432 | $1,383 |
| Other non-cash items | $2,315 | -$436 |
| Net cash provided by operating activities | $32,231 | $29,080 |
| Cash Flows From Investing Activities | ||
| Investments in property, plant, and equipment | -$5,485 | -$5,944 |
| Acquisitions, net | -$5,937 | -$3,723 |
| Purchases of investments | -$72,690 | -$98,729 |
| Sales/Maturities of investments | $65,366 | $85,861 |
| Other investing activities | -$87 | -$466 |
| Net cash used for investing activities | -$18,833 | -$23,001 |
| Cash Flows From Financing Activities | ||
| Debt issued | $10,350 | $10,680 |
| Debt repayment | -$3,888 | -$1,500 |
| Common stock issued | $607 | $634 |
| Common stock repurchased | -$7,316 | -$14,443 |
| Excess tax benefit from stock based compensation | $271 | $588 |
| Dividend paid | -$8,879 | -$9,882 |
| Other financing activities | $461 | $4,843 |
| Net cash provided by (used for) financing activities | -$8,394 | -$9,080 |
| Effect of exchange rate changes | -$139 | -$73 |
| Net change in cash | $4,865 | -$3,074 |
| Cash at beginning of period | $3,804 | $8,669 |
| Cash at end of period | $8,669 | $5,595 |
| Free Cash Flow | ||
| Operating cash flow | $32,231 | $29,080 |
| Capital expenditure | -$5,485 | -$5,944 |
| Free cash flow | $26,746 | $23,136 |
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International Business Finance
Authors: Michael Connolly
1st Edition
0415701538, 9780415701532
