you performed a trend analysis for Microsoft. Refer back to that company and assess the financial statements using the ratio tools you have acquired in the course. Select at least one profitability, liquidity, solvency, and market valuation ratio and evaluate the results. Based on your findings, find

• What do the metrics tell you about Microsoft's performance? Support your answer by explaining the results from your assessment.
• If you were considering investing in the company, what other questions would you ask to gain further insight into the performance?

Here is the link of Microsoft Financial report:

https://www.microsoft.com/investor/reports/ar19/index.html

Last week Microsoft trends analysis

Trend analysis is based on the idea that what has happened in the past gives traders an idea of what will happen in the future. (Hayes,2019). To perform the trend analysis of Microsoft, we have to go through the financials of the company. The financial of the company was obtained as it is cited on the reference page. I selected Revenue, Operating income and net income for trend analysis from income statement. We have further selected, Total assets, Long term obligations and Stockholders Equity for trend analysis of Balance sheet.

Particulars2019201820172016

Revenue125843 1103609657191154

Operating Income42959350582902526078

Net Income39240165712548920539

Total Assets286556 258848250312202897

Long term obligations114806 117642 10685666705

Stockholders' Equity102330 827188771183090

What are the trends on a common-size basis?

For common size trend analysis, we will use horizontal trend analysis as multiple year data is involved. the calculations are shown below :

Particulars2019201820172016

Revenue1258431103609657191154

% change14%14%6%NA

Operating Income42959350582902526078

% change23%21%11%NA

Net Income39240165712548920539

% change137%-35%24%NA

Total Assets286556258848250312202897

% change11%3%23%NA

Long term obligations11480611764210685666705

% change-2%10%60%NA

Stockholders' Equity102330827188771183090

% change24%-6%6%NA