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Apple and Microsoft: Financial performance comparison

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Review financial statements for two years for Apple and Microsoft. Make a comparison of the following items and note trends.
- Revenues
- Cost of good sold
- Accounts receivable
- Accounts payable
- Inventory

Discuss and interpret the changes over the two-year period. Which company is the best performer and why? How is this information useful to you from a managerial perspective? Explain your reasoning and support your conclusions with the numbers you have pulled out for the comparison above. Don't forget to comment on the interaction of the balance sheet and income statement.

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Solution Preview

All the following financial data were sourced from Apple, Inc.'s and Microsoft Corporation's 2013 Form 10-K filings with the Securities and Exchange Commission.

Apple, Inc.: http://www.sec.gov/Archives/edgar/data/320193/000119312513416534/d590790d10k.htm
Microsoft Corporaton: http://www.sec.gov/Archives/edgar/data/789019/000119312513310206/d527745d10k.htm

The attached Excel file shows the page number where the particular financial figure was taken from in the Form 10-K.

Based on the limited horizontal analysis above - changes of the five identified accounts from 2012 to 2013, we can conclude the following:
1. Apple's revenues increased at a higher percentage and in absolute dollar amount than Microsoft.
2. Apple's cost of sales increased at a higher rate than the increase in its revenues, and the cost of sales increased by a dollar amount that is higher than the increase in sales which can result to a lower net ...

Solution Summary

This solution discusses Apple and Microsoft's performance in 2012 and 2013.

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Dell v Apple: Financial Ratio Comparison

Need assistance with Q 9, 10, 11 and B.3.

Prepare an analysis of the two companies selected ( Apple & Dell). In your analysis evaluate their financial performance using trend and financial ratio analysis, and analyze their most recent statements of cash flows. You may include charts summarizing ratio and cash flow findings but need to analyze and evaluate that data in essay form.

a. Evaluate each firm's financial performance for the two most recent years available by (1) performing financial ratio analysis using the University of Phoenix Microsoft® Excel® Ratio Analysis Worksheet, (2) performing trend analysis on those financial ratios, and (3) comparing and contrasting the findings in essay form. Be sure to include a citation and reference the source of your financial information. A copy of the financial information can be attached, a URL provided, or re-created. Your analysis should include at least eight from the following list:
1) Current ratio
2) Quick ratio
3) Average collection period (days sales outstanding)
4) Inventory turnover ratio (if applicable)
5) Times interest earned
6) Debt-to-equity ratio
7) Net profit margin
8) Return on equity
9) Total asset turnover HELP THIS ONE
10) Return on assets HELP THIS ONE
11) Price-earnings ratio HELP THIS ONE
b. For both of these years and companies:
1) Identify the amount of cash generated or used from each of operating, investing, and financing activities,
2) Identify what business changes occurred altering the company's use of cash from one year to the next
3) Discuss whether or not the company is generating cash in a sustainable manner, HELP THIS ONE
4) Make recommendations as to how the company could better manage its cash flows in the future.

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