Microsoft Finalcial Analysis
Microsoft Corporation was founded in 1975 by Bill Gates and Paul Allen from Seattle, and incorporated in 1981. Being the number one software company in the world it employs 50,500 people working full-time, 20,800 in product research and development, 23,500 in sales, marketing, and support, 2,200 in manufacturing and distribution, and 4,000 in finance and administration. Microsoft has achieved its phenomenal success by providing customers, whether a private consumer or a highly known company, with a wide range of high-quality products and services. Microsoft develops, manufactures, licenses, and supports a wide range of software products, which include: Operating Systems for servers, personal computers, and intelligent devices. Most of the software products are developed internally, this allows for custom modification by Microsoft. Hardware products include mouse's and keyboards. They also offer consulting services for startup and established companies, their experience consultants help companies develop and implement solutions that will meet their business needs. The company has expanded into markets such as video game consoles, interactive television, and Internet access. Their most current partners
Cash and Short-term Investments increased dramatically in 2002 by $7,052. Cash value did not change from 2001 to 2002; therefore, it was short term investments that made the dramatic increase of $7,052. Fiscal 2002 was reviewed to state its present economic standing. Liquidity was first evaluated to measure the ability of Microsoft to pay its debts with cash on hand. Current Ratio for the company was at 3.81 in which the current assets can cover its current liabilities by four times. In the year 2001 it was reported at 4.24. Quick Ratio was at 3.44, meaning cash, short-term investments, and accounts receivable net can cover its current liabilities by 3.44 times its value. In the year 2001 it was reported at 3.81. Microsoft in the Fiscal year 2002 had a significant increase in revenue. It was mainly due to new developments, such as the strong demand for Windows XP, an increase in MSN subscriptions, and Xbox video game system, and a continued focus on new technologies. In Fiscal year 2001 revenue was reported at $25.30 billion, in contrast Fiscal year for 2002 was at an increase of $3.07 billion. Year 2001 was at an increase from year 2000 that only reported $22,956 in revenue. Overall this shows that Microsoft has a good increase rate throughout each year. Profitability ratios were analyzed to measure the operating succ
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Approximate Word count = 912
Approximate Pages = 4 (250 words per page double spaced)
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