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Financial Analysis for a U.S. publicly traded company

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I need help in responding to the questions below as a financial analyst researching the U.S. publicly traded company Priceline, in which to invest and perform a financial analysis.

1. Provide a detailed overview of the U.S. publicly traded company, Priceline. This should be 3 pages.
2. Evaluate the company's vulnerability to current financial threats, such as a recession, higher interest rates, and global competition.
3. Based on the financial trends of the company, predict how these trends will impact financial performance in future periods. Explain your rationale for this prediction.

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Introduction: Financial analysis is a process that is used to assess or evaluate the profitability, viability, stability and financial performance of a company in order to determine their stability for investment purposes. It is a useful tool for the investors to determine that the particular company might be a good option for investment or not (Lee, Lee & Lee, 2009). For this assignment, Microsoft Corporation, which is one of the largest U.S. publicly traded companies, is selected to perform a financial analysis. In this assignment, the detailed overview of Microsoft, including description of the company, business operations, markets, locations, and product line will be discussed. Along with this, the company's vulnerability against recession, global competition and higher interest rates will be also evaluated to determine stability.

Company Overview

Microsoft Corporation is the world's leading software provider that develops, licenses, and supports a wide range of software products and services as well as also designs and sells computer hardware products worldwide (Yahoo Finance, 2012). It is a U.S. based company that is headquartered in Washington. It was founded in 1975 by Bill Gates and Paul Allen to develop software for personal computers in order to empower people at the workplace, home, business and school. It was listed in the NESDAQ stock market during the year 1986 for public trading (Microsoft, 2012).

In terms of market capitalization, it is the world's second most valuable company after Apple Inc. that is publicly traded in the U.S. Along with this, Microsoft is the number one software producing company in terms of annual sales revenue and net profit. The company employs approximately 90,000 full time people, in which 54,000 are working in the U.S. and 36,000 internationally through its five business segments to provide a range of software and hardware products and services (Annual Report, 2011).

The detailed overview of the corporation in terms of business operations, locations, markets and products are discussed below -

Mission

The main mission of the corporation is to help the people and businesses throughout the world realize their potential by developing technology and transfer effective ways to communicate (Microsoft, 2012).

Operating Segments

Microsoft mainly operates in five business segments that are: Windows & Windows Live Division (Windows Division), Online Services Division (OSD), Microsoft ...

Solution Summary

Financial analysis for a United States publicly traded company is examined.

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See Also This Related BrainMass Solution

Financial Analysis: Investing in Companies

Assume you are a savvy financial analyst researching companies in which to invest.
Select a U.S. publically-traded company you think might be a good investment and perform a financial analysis. Your analysis should include the following:
- Company Overview. Conduct research and describe the company, its operations, locations, markets, and lines of business. Collect financial statements for the past three (3) years, fiscal or calendar (please insert these in the appendix). These financial statements must include at least the income statement and the balance sheet.
- Evaluate the company's vulnerability to current financial threats such as a recession, higher interest rates, and global competition.
- Financial Performance. Based on the financial trends of the company, predict how these trends will impact financial performance in future periods. Explain your rationale for this prediction.
- Stock Price Analysis. Given the performance of the stock in the periods presented on the company's financial statements, discuss how the stock is likely to perform in the future, what type of investor would be drawn to this stock, and make a recommendation to management to improve stock performance.

Submit analysis in which you:
1. Provide a detailed overview of a U.S. publicly traded company. This should be one to two (1-2) pages.
2. Evaluate the company's vulnerability to current financial threats such as a recession, higher interest rates, and global competition.
3. Based on the financial trends of the company, predict how these trends will impact financial performance in future periods. Explain your rationale for this prediction.
4. Cite at least five (5) quality references.

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