You are given the financials of a two competitor companies:-
1)Calculate the ratios below
2)Compare the two companies using the ratios and interpret them
		Profitability ratios	Liquidity ratios	Activity ratios	Level of debt
		1.Gross Profit margin	1.Current ratio	1.Days inventory outstanding	1.Debt ratio
Your analysis should include: - The indication of each ratio - Your comment on which company is better on the liquidity, profitability, activity and debt level - The reason behind the discrepancies in the ratios if there is any.	2.Net Profit margin	2.Quick ratio	2.Days sales outstanding	2.Interest coverage
3.ROE		3.Days payable outstanding
4.ROA		4.Cash conversion cycle

IBM

Balance Sheet
Period Ending:	2022	2021	2020	2019
Cash & Equivalents	6841	7557	14251	9009
Short Term Investments	852	600	600	696
Accounts Receivables	15148	15770	18738	23795
Inventory	1552	1649	1812	1619
Prepaid Expenses	2611	3466	2089	2101
Other Current Assets, Total	-	-	-	-
Total current assets	27004	29042	37490	37220
Property/Plant/Equipment, Total - Net	8212	8916	14726	15006
Goodwill, Net	55949	55643	59617	58222
Intangibles, Net	11184	12511	13796	15236
Long Term Investments	1617	1823	2282	2074
Note Receivable - Long Term	5806	5425	7086	8712
Other Long Term Assets, Total	-	-	-	-
Other Assets, Total	-	-	-	-
Total assets	109772	113360	134997	136470
Accounts Payable	6247	6244	8209	7735
Payable/Accrued	-	-	-	-
Accrued Expenses	4111	3892	6847	4357
Notes Payable/Short Term Debt	4760	6787	7183	8797
Current Port. of LT Debt/Capital Leases	3481	3204	3440	340
Other Current liabilities, Total	7592	7096	10287	7763
Total current liabilities	26191	27223	35966	28992
Long Term Debt	46189	44917	54355	54102
Capital Lease Obligations	2190	2462	3574	3879
Deferred Income Tax	2292	3956	5472	5230
Minority Interest	77	95	129	144
Other Liabilities, Total	14889	622	8282	16825
Total liabilities	91828	79275	107778	109172
Redeemable Preferred Stock, Total	-	-	-	-
Preferred Stock - Non Redeemable, Net	-	-	-	-
Common Stock, Total	54343	57319	56556	55895
Additional Paid-In Capital	-	-	-	-
Retained Earnings (Accumulated Deficit)	149825	154209	162717	162954
Treasury Stock - Common	-169484	-154209	-162717	-162954
ESOP Debt Guarantee	-	-	-	-
Unrealized Gain (Loss)	-	-	-	-
Other Equity, Total	-16740	-23234	-29337	-28597
Total Equity	17944	34085	27219	27298
Total Liabilities and Equity	109772	113360	134997	136470

Income Statement
Period Ending:	2022	2021	2020	2019
Revenue	43004	38655	33014	37266
Cost of Revenue, Total	-18000	-15357	-13433	-14619
Gross Profit	25004	23298	19581	22647
Selling/General/Admin. Expenses, Total	-12880	-11867	-9556	-12005
Depreciation / Amortization	-1260	10	14	19
Interest Expense	-882	-1597	-1437	-946
Other Operating Expenses, Total	-972	-1580	-1449	-938
Operating Income	9010	8264	7153	8777
Interest Income (Expense), Net Non-Operating	-	1246	4	840
Gain (Loss) on Sale of Assets	-	-	-	-
Other, Net	1210	3438	1819	1083
Net Income Before Taxes	10220	12948	8976	10700
Income Taxes	2300	2913	2020	2408
Net Income After Taxes	7921	10035	6956	8293

MSFT

Balance Sheet
Period Ending:	2022	2021	2020	2019
Cash & Equivalents	34704	13931	14224	13576
Short Term Investments	76558	90826	116110	122951
Accounts Receivables	48688	44261	38043	32011
Inventory	2500	3742	2636	1895
Prepaid Expenses	-	-	-	-
Other Current Assets, Total	21807	16924	13393	11482
Total current assets	184257	169684	184406	181915
Property/Plant/Equipment, Total - Net	109987	87546	70803	52904
Goodwill, Net	67886	67524	49711	43351
Intangibles, Net	9366	11298	7800	7038
Long Term Investments	9879	6891	5984	2965
Note Receivable - Long Term	-	-	-	-
Other Long Term Assets, Total	30601	21897	15075	1318
Other Assets, Total	-	-	-	-
Total assets	411976	364840	333779	289491
Accounts Payable	18095	19000	15163	12530
Payable/Accrued	4152	4067	2174	2130
Accrued Expenses	-	-	-	-
Notes Payable/Short Term Debt	5247	2749	8072	3749
Current Port. of LT Debt/Capital Leases	-	-	-	-
Other Current liabilities, Total	14745	13067	11666	10027
Total current liabilities	42239	38883	37075	28436
Long Term Debt	41990	47032	50074	59578
Capital Lease Obligations	12728	11489	9629	7671
Deferred Income Tax	433	230	198	204
Minority Interest	-	-	-	-
Other Liabilities, Total	17981	15526	13427	10623
Total liabilities	115371	113160	110403	106512
Redeemable Preferred Stock, Total	-	-	-	-
Preferred Stock - Non Redeemable, Net	-	-	-	-
Common Stock, Total	93718	86939	83111	80522
Additional Paid-In Capital
Retained Earnings (Accumulated Deficit)	118848	84281	57055	34566
Treasury Stock - Common	-	-	-	-
ESOP Debt Guarantee	-	-	-	-
Unrealized Gain (Loss)	-6343	-4678	1822	3186
Other Equity, Total	90382	85138	81388	64705
Total Equity	296605	251680	223376	182979
Total Liabilities and Equity	411976	364840	333779	289491

Income Statement
Period Ending:	2022	2021	2020	2019
Revenue	211915	198270	168088	143015
Cost of Revenue, Total	-65863	-62650	-52232	-46078
Gross Profit	146052	135620	115856	96937
Selling/General/Admin. Expenses, Total	-30334	-27725	-25224	-24709
Research & Development	-27195	-24512	-20716	-19269
Depreciation / Amortization	-	-	-	-
Interest Expense	-1968	-2063	-2346	-2591
Unusual Expense (Income)	-	-	-	-
Other Operating Expenses, Total	-29026	-29083	-21630	-6390
Operating Income	57529	52237	45940	43978
Interest Income (Expense), Net Non-Operating	-788	-333	-1186	-77
Gain (Loss) on Sale of Assets	15	435	1303	28
Other, Net
Net Income Before Taxes	56756	52339	46057	43929
Income Taxes	12770	11776	10363	9884
Net Income After Taxes	43986	40563	35694	34045