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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