Activity

  • rv347 replied to the topic Discussion Topic: Exercise your research skills in the forum Business 101 6 years, 6 months ago

    I looked up Microsoft to see how they compare financially, these were my findings:

    ROI (return on investment)= 10.69.%. This value is calculated by dividing net sales by investments. Its not great, should be above 20%.
    ROA (return on Assets) = 6.63. This seems low.
    ROE (return on Equity)= 21.37% . This is probably the most important metric to evaluate a company by. It compares the income available to equity investors to the capital owned by equity investors. The average of more than 7,400 publicly traded US firms was 10.38% so Microsoft appears to be doing ok.
    source: marketwatch website