Microsoft Corporation (MSFT) Company Overview Formed in 1975, Microsoft started by selling a BASIC interpreter which quickly established a reputation for excellence. As the popularity of Microsoft BASIC grew, other manufacturers adopted Microsoft BASIC’s syntax to maintain compatibility with existing Microsoft BASIC implementations. Because of this feedback loop, Microsoft BASIC became a de facto standard, and the company cornered the market. Later, it tried (unsuccessfully) to extend their grip on the home computer market by designing the MSX home computer standard. In late 1980, International Business Machines needed an operating system for its new home computer, the IBM PC. Microsoft subsequently purchased all rights to DOS for $10, 000, and renamed it MS-DOS (for Microsoft Disk Operating System).
It was released as IBM PC-DOS 1. 0 with the introduction of the PC in 1981. In contracting with IBM, however, Microsoft had retained the rights to license the software to other computer vendors as MS-DOS. The now highly profitable and cash rich Microsoft diversified into a wide variety of software products including: compilers and interpreters for programming languages and word processors, spreadsheets and other office software some of these products were successful, and some were not. By the turn of the millennium, many of Microsoft’s software products dominated the market in their respective categories. Microsoft has devoted huge amounts of effort to marketing in developing their products and services, as well as to the integration of their software products with one another in an attempt to create a seamless and consistent computing environment for the user.
The Term Paper on Software Product Eula Export Microsoft
GRANT OF LICENSE. This EULA grants you the following rights: (Software Installation and Use. Except as otherwise expressly provided in this EULA, you may only install, use, access, run, or otherwise interact with ('RUN') one copy of the SOFTWARE PRODUCT on the COMPUTER. The SOFTWARE PRODUCT may not be installed, accessed, displayed, run, shared or used concurrently on or from different computers, ...
Analysis. Trend Analysis Liquidity Ratios: Current Ratio – For the last three years was growing from 3. 56 in 2001 to 3. 81 in 2002 to 4. 22 in 2003. The reason of grow is increased in Assets.
Even though Liability was growing, Asset grow was more significant. Quick Ratio – Constant grow for the last three years. From 3. 56 in 2001 to 3. 76 in 2002 to 4.
17 in 2003. The reason of grow is constant increase in Current Assets. Cash ratio – Big drop (from. 35 to. 087) in year 2002. In 2003 the rate grew from.
087 to. 460. The reason of drop in 2002 is decreased in Cash and big increase in Liabilities. The increase in 2003 occurs because of big increase in Cash and slight increase in Liabilities. Asset Management Ratios Total Asset Turnover – Dropped from.
64 in 2001 to. 58 in 2002 to. 55 in 2003. The reason is big increase in Total Assets. Account Receivables Turnover – Dropped in 2002 from 4. 5 to 3.
92 in 2001. Because of big increase in 2002 in Accounts Receivables. Grew in 2003 to 4. 18 from 3. 92 in 2002. Because of big increase in Sales.
Inventory Turnover – There was no inventory reported in 2001. Grew from 7. 71 in 2002 to 8. 88 in 2003. The reason is increase in Cost of Good Sold and decrease in Inventory. Debt Management Ratios Debt/Equity Ratio – Increased from 0.
235 in 2001 to. 244 in 2002 to. 30 in 2003. The reason is constant increase of Total Debt.
Total Debt ratio – Increased from. 202 in 2001 to. 228 in 2002 to. 233 in 2003. The reason is constant grow in Total Assets even though total equity was increasing too.
Equity Multiplier – Constant increase from 1. 25 in 2001 to 1. 297 in 2002 and 1. 30 in 2003. The reason was company’s increase in total assets.
Profitability Ratios Profit margin – Slight decrease from. 29 in 2001 to. 28 in 2002. Because of big increase in sales. And slight increase from. 28 to.
31 in 2003 – because of big increase in Net Sales. ROA – Decrease in 2002 from. 124 in 2001 to. 1158. The reason is decrease in Net Income.
The Essay on Natural Increase Rate People High
Identify those areas of the world which have very high rates of natural increase in population today and give reasons for them. Rate of natural increase is defined as the rate at which a population is increasing / decreasing in a given year due to a surplus or deficit of births over deaths, expressed as a percentage of the base population. The birth rate (Br) is the number of live births per 1000 ...
In 2003 ratio grew to. 1256 from. 1158. The reason is big increase in Net Income. ROE – Decrease in 2002 from. 155 in 2001 to.
15. Main reason was decrease in Net income. And Increase in 2003 form. 15 to. 163 – because of big increase in net Income.
Market Value Ratios Book Value per Share – Constant increase for 3 years from 4. 49 to 4. 87 to 5. 66 – the reason for increase was Common Equity grow. P/E Ratio – Constant decrease from 47.
8 to 36. 67 to 29. 81. Market-to book ratio – Constant decrease from 7. 55 in 2001 to 5. 30 on 2002 to 4.
84 in 2003. The reason for decrease was price per share decrease in 2002 and big Book value per share ratio increase in 2003. II. Industry Comparison: Valuation Ratios/E Ratio – The Company has Lower ratio than Industry/E High for last 5 years – Company has Higher ration than Industry. (very slightly higher) P/E Low for last 5 years – Higher than industry average.
This company has better ration than average for this industry. Beta – Lower ratio than industry. Risk is lower but return / loss is lower too. Dividends Dividend yield – Higher than Industry. Better dividends on stocks than average.
Dividends Yield 5 year Avg – Higher. For last 5 years company had better dividend yield than average for this particular industry. Payout Ratio – Higher. Significantly higher payout on stocks than industry average. Growth Rates %Sales (MRQ) vs Qtr. – Higher.
Company has better MRQ sales average than industry avg. Sales (TTM) vs TTM – Higher. Company has better TTM Sales than average in industry. Sales 5 y Growth rate-Lower. Company has lower growth rate for last 5 years than industry.
Financial Strength Quick Ratio – Higher. Company has better Quick Ratio than industry. (Big assets) Current Ratio – Higher. Company has better relation between Current Assets/Curr. Lab. LT Debt to Equity – Lower.
Better than Industry Average. Profitability Ratios %Gross margin – Higher. Better gross margin than average for industry. Gross Margin 5 Yr- Higher. For last 5 yrs, company has better Gross Margin than industryEBITD Margin – Higher.
The Essay on Ratio Analysis Ratios Company Industry
... companies in similar lines of business. One of the most popular forms of cross-sectional analysis compares a company's ratios to industry averages. These averages ... the annual dividend, the dividend yield, the price / earnings ratio, the day's trading volume, high and low prices for the day, the changes from ...
Company has higher ration than industry average. III. Analysis of the stock price Movement If we look on the graph we see that the price of stock was decreasing in overall for the past 3 years. The highest price (based on analyze from June 2001 until June 2003) was on June 2001 ($32. 80) and the lowest on September 02 ($21.
68).
Also we can see big price drop after September 11 events when the price went down from as high as $32 to as low as $25 in just couple month. In next couple month price went back up to its value. Beta is lower than Industry average, which means less risk but less return / loss and lower that Sector Beta but higher than S&P 500 because Microsoft is in IT industry which is usually more risky. Conclusion: The company’s stock price has taken a beating due to antitrust concerns and questions about its financial performance. Add in fierce competition and an industry shift toward the Internet and away from Microsoft’s desktop stranglehold, and the company is looking vulnerable.
However, it’s never paid to bet against Microsoft, and the company’s new Internet strategy may spell trouble for competitors. I think that new strategies implementing by company will give good results in the future. The company is IT industry which is always risky because of fast changing technology, demands and strong competition, its stock has Medium Risk Rate, but at the same time Microsoft stock price looks under priced, almost all ratios comparing to industry averages are higher. My conclusion would be to invest in Microsoft; the price of stock will grow. References web – MSFT Investment Relations web (“Industries”; or “Stocks” and “Ratios”) web – Income Statement, Balance Sheet, Cash Flow, Charts and etc.
web (Industry Ratio Comparison) web – Encyclopedia Encarta. Overview of the Company.
