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# Ratios Essay

459 words - 2 pages

Oracle Microsoft Notes: Comparison between the two companies' ratios

Earning per share As given in the income statement \$1.69 \$2.73 Cannot compare due to a different amount of shares outstanding.

Current ratio Current assets \$39,174 = 2.76 \$74,918.00 = 2.60
Current liabilities \$14,192 \$28,774.00

Gross Profit Ratio Gross profit amount \$442 = 1.2% \$1,637 = 2.3% Microsoft Sales (13940) - cost of revenue (15,577)
Net Sales \$35,622 \$69,943 "Oracles Sales(24,031) -Operating Expenses (23,589)
"

Profit margin ratio Net income \$8,457 = 23.7% \$23,150 = 33.1% Profit ratio
Net Sales \$35,622 \$69,943

Inventory Turnover Cost of goods ...view middle of the document...

99 0.93

Assets Turnover Ratio Net Sales \$6,579 = 0.10 \$13,940 = 0.14
Average Total Assets \$67,556 \$97,408 Microsoft 108,704+ 86,113 /2 Oracle \$ 73,535 + \$ 61,578/2

Return on Assets Ratio Net Income \$8,547 = 12.65% \$26,944 = 27.66%
Average Total Assets \$67,556 \$97,408

Debt to Total Assets Ratio Total Liabilities \$33,290 = 45.27% \$51,621 = 47.49%
Total Assets \$73,535 \$108,704

Times Interest Earned Ratio Net Income + Int Expense + Tax Expense \$10,603 = 13.1 32,775 \$32,775 36.0
Interest Expense \$808 910

Payout ratio Cash dividend declared on common stock \$1,061 = 12.4% \$5,180 = 19.2%
Net income \$8,547 \$26,944

Return on Common Stockholders' Equity Net income - Preferred stock dividend 7,486 = 21.2% 7,925 = 41.7%
Average common stockholders' equity 35,287.00 19,019.00

Free cash flow Cash provided by operations minus capital expenditures minus cash dividends paid \$9,703 = -\$14,443 = Oracle Net cash provided by operating activities 11,214 -Capital expenditures - (450 ) Payments of dividends to stockholders (1,061 )
"microsoft-
Net cash from operations 26,994
-Purchases of investments (35,993 )
-Common stock cash dividends (5,394
"

Current cash debt coverage ratio Cash provided by operations \$11,214 = 0.78 \$26,944 = 0.98
Average current liabilities \$14,441 \$27,460

Cash debt coverage ratio Cash provided by operations \$11,214 = 0.35 \$26,944 = 0.59
Average total liabilities \$31,834 \$45,779

Price/Earnings ratio Market price as 6/30/11 \$34.22 = 20 \$33.40 = 12
EPS \$1.69 \$2.73

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