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Running Head: MICROSOFT AND IBM FINANCIAL PERFORMANCE
Microsoft and IBM Financial Performance
Team E
Managerial Finance I FIN/475
University of Phoenix
Rene Niese
April 7, 2008
Microsoft and IBM Financial Performance
Introduction
Team E has been charge with the task of preparing an analysis to evaluate Microsoft and IBM’s financial performance. This will be done by using trends, financial ratio analysis, and the firms’ most recent statements of cash flow. Team E will evaluate each firm’s financial performance for the last two years by (1) performing financial ratio analysis, (2) performing trend analysis, and (3) compare and contrast the findings. Team E’s analysis will include:
Current Ratio – is an indication of a company's ability to meet the company’s short-term debt obligations.
Quick Ratio – measures a company's liquidity and ability to meet the company’s short-term obligations with its most liquid assets; the higher the numbers, the better the position of the company.
Debt-To-Equity Ratio – measures a company's financial leverage and indicates what proportion of equity and debt the company is using to finance its assets. Net Profit Ma ...