Asset and Capital Structure
2008
Cash and cash equivalents
$10,339
Accounts receivable
$13,589
Inventories
$985
Total fixed assets
$29,551
The asset structure at Microsoft reflects some of the particularities in the industry, notably the fact that the inventory levels tend to be quite low, as compared to the other assets. This means that the IT industry is not one supporting production on stock. At the same time, the value of the total fixed assets is significantly high, which can be partly explained by the size of the company and the investments in land, buildings and equipment.
Part III -- Ratio Analysis
The current ratio in 2008 was 1.45, as compared to 1.69 in 2007. The current ratio has slightly decreased from 2007, but, given the fact that it still retains a value greater than 1, it is clear that the short-term financial solvability of the company is solid.
The total asset turnover at Microsoft was 0.83 in 2008, as compared to 0.81 in 2007. The figures denote a slight increase, which...
Further diversification is also recommended. Given the pace of change in the industry, the reliance on PC operating platforms and office software packages must be reduced. The risk of an entirely new technological paradigm emerging is high, so Microsoft must therefore diversify its revenue streams in order to defend against this threat. Overall, Microsoft's strategic thrust is strong and its operating results fantastic. The company must guard against major
The balance sheet includes two main categories, assets and liabilities and shareholders' equity. Both of these are in turn split into current assets and other assets. In terms of current assets, all three companies include inventory, cash and cash equivalents and receivables, while the liabilities cover short- and long-term debt, as well as the shareholders' equity. The cash flow statement includes the three different categories, cash flows from operating activities, cash
SAP'S EXTERNAL FINANCIAL REPORTING SAP External Financial Reporting SAP's external financial reporting History of SAP SAP has a proud 40-year history that is founded on their mantra of innovation. Their success has come from their innovative culture. The company was founded in 1972 when five like-minded former IBM employees came together and created a company with the vision of providing clients with technological innovations. The company was called Systemanalyse und Programmentwicklung (SAP) which was
1. Introduction Firms may be successful by satisfying customer needs, but their ultimate accountability for financial performance is to the owners of the firm. Actions undertaken by quoted firm will usually have the direct, or indirect, aim of generating revenues and profits for the firm, and therefore the owners (Tarraf, 2012). When investors assess a potential investment they will look at the financial performance of a firm, assessing the past performance,
Since 2010 the organization has demonstrated a decline in revenue of 11.08%. However, one would expect some decline as a result of the divestments took place in 2011. The gross profit for the year ending 2012 was $8,019, which equates to a gross profit margin of 22.21%. However, the operating profit demonstrated a loss of $519, hindered by high ongoing Goodwin and intangible asset charges. However, was a lower operating
accounting questions while the rest centers on the characteristics of two certain companies, those being Apple and Philips. Accounting Questions & Answers The first accounting question is why revenue recognition is a significant issue. Recognizing when revenue comes in, what specific revenue stems from and the exact amount of all of the above is a very vital part of the accounting process because it has a direct correlation and effect on
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