Microsoft - Google - Apple - Accounting
Essay by Brandon Shamsabadi • August 4, 2016 • Case Study • 277 Words (2 Pages) • 1,067 Views
All numbers are in millions of U.S. dollars | Microsoft | Apple | ||
Income Statement Numbers | ||||
Revenues | $86,833 | $66,001 | $182,795
| |
Cost of sales (or cost of revenue) | $27,078 | $25,691 | $122,258 | |
Net income | $22,074 | $14,444 | $39,510 | |
Balance Sheet Numbers | ||||
Total assets | $172,384 | $131,133 | $231,839 | |
Total liabilities | $82,600 | $26,633 | $120,292 | |
Total stockholders’ equity | $89,784 | $104,500 | $111,547 | |
Financial Ratios | ||||
Debt ratio | 48% | 20% | 52% | |
Gross profit percentage | 69% | 61% | 33% | |
Return on sales | 25% | 22% | 22% | |
Return on equity | 25% | 14% | 35% |
Debt Ratio is a financial ratio that indicates the percentage of a company's assets that are provided via debt. It is the ratio of total debt. The higher this ratio is, the more financial risk the company is in. This graph shows that Google is at a much lower financial risk than Microsoft and Apple. Although Debt ratio isn’t all that bad because it also is an important tool that helps companies grow.
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