Microsoft Roe, Roa, Roi Essay

666 WordsNov 30, 20133 Pages
Ricky Anger Microsoft Write-up FIN 333 Microsoft is the world's largest software maker, primarily as a result of its near-monopoly position in desktop operating systems and its Office productivity suite. The combination of these two strongholds poses a formidable barrier to entry for competitors, in our opinion. MSFT has used the strong cash flows from these businesses to fund research and development of other markets, including home entertainment consoles and Internet online advertising. The company has five operating business divisions: Windows and Windows Live, Server and Tools, Online Services Business, Microsoft Business, and Entertainment and Devices. (S&P) Microsoft is part of the system software industry along with other companies such as: Oracle, McAfee, and Symantec. Compared to the other companies, Microsoft almost has a monopoly in the system software industry. Microsoft’s sales are almost 2.5x greater than the second leading competitor, and are 10x greater than the third leading company. All of Microsoft numbers are far beyond their competitors in every aspect from Gross Profit to Operating Profit to Adjusted Net Income, where they are 3x more profitable then Oracle who is the second most profitable company with a little over $6 billion. % | Microsoft | 2nd Highest Compay | Return of Revenue | 24.9 | 14 | Return of Equity | 38.4 | 13.2 | Return of Assets | 19.3 | 9.8 | Debt/Capital | 8.7 | 26.6 | Jun 10 Jun 09 Jun 08 Return on Assets (%) | | 21.785 | 18.705 | 24.289 | Return on Equity (%) | | 40.628 | 36.829 | 48.727 | Return on Investment (%) | | 36.702 | 33.636 | 48.725 | | | | Days to Sell Inventory | | 26.523 | 31.058 | 39.087 | Net Profit Margin (%) | | 30.024 | 24.931 | 29.263 | Total Debt/Total Assets (%) | | 6.897 | 7.394 | 0.001 | | | | (All data found

More about Microsoft Roe, Roa, Roi Essay

Open Document