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You are to provide a report on Microsoft, including the following: a brief explanation of the Microsoft. How large is it, what does it do,

You are to provide a report on Microsoft, including the following:

a brief explanation of the Microsoft. How large is it, what does it do, what industry is it part of, and what is its ticker symbol and which market is it traded on.You can also include any points you think are particularly interesting/noteworthy as well.

Liquidity Analysis - Calculate the Current Ratio and Quick Ratio for the past 2 years.Describe what these tell us about Microsoft and what the level of risk is.

Debt/Leverage Analysis - Calculate the following ratios:

  • Debt to Total Assets Ratio
  • Debt to Equity Ratio
  • Interest Coverage Ratio (TIE)
  • Degree of Operating Leverage

Use these ratios, along with comparisons to industry averages, to assess the effectiveness with which Microsoft uses debt and the risks that it faces from debt. Is this company overleveraged? Why/why not? Is the company likely to be unable to meet interest payments on debt? Why/why not?

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