Abp #1

Applied Business Project 1 Financial Analysis
Submit your ABP-1 report to TurnItIn as a PDF file

Name: Stolz, Molly (mollystolz)
Project: ABP-1 Financial Analysis
Task 1: Current Company Profile
a) Governance table
Company Name Microsoft Corporation

Location Redmond, WA
CEO Satya Nadella
Board of Directors John W. Thompson (Feb 2012)
Maria M. Klawe (March 2009)
Teri L. List-Stoll (Oct 2014)
G. Mason Morfit (March 2014)
Satya Nadella (Joined Microsoft in 1992 or became CEO in Feb 2014)
Bill Gates (Founded in 1975)
Charles H. Noski (Nov 2003)
Dr. Helmut Panke (Nov 2003)
Charles W. Scharf (Oct 2014)
John W. Stanton (July 2014)
Fiscal Year July 1 - July 30
Exchange Nasdaq Stock Market
Ticker Symbol MSFT
Industry Sector &
Classification Technology- Business Software and Services
Table 1- Microsoft Corporate Governance
(http://www.microsoft.com/investor,https://finance.yahoo.com accessed on 9/21/2015)
Stolz, Molly Page 1 of 6

b) Financial profile
9/21/15
Current Share Price (at the close) 44.11
Gain/loss of the share price 0.63
Daily Volume/ Avg Volume 26.18M
52 Week Range 39.72 - 50.04
Current Market Capitalization 347.75B
# of Traded Shares 8.03B
Company's "Beta" 0.88
Percentage of Shares owned by Institutions 73%
Number of employees 118,000
Table 2- Microsoft Corporate Financial Report
(https://www.google.com/finance accessed on 9/21/2015)
c) Stock Assessment
Based on recent trades and the stocks current share price at Microsoft Corporation, I
would most definitely recommend the stock as a buy to other investors. I think that
Microsoft is a reliable company that has always been seen increasing as an increasing
company on the NASDAQ market. Microsoft has not had many scandals recently so this puts
them in good standings. It is important for a company to show improvements and new
additions to their products so that their customers are excited and their stockholders want to
keep investing. Microsoft has released many new products such as laptops, desktops, cell
phones, and much more. These products sell fast which increases the stock for the company
because more people want to be a part of the successful company.

Task 2: Historical Stock Analysis and Fundamentals
a) Income/Balance Sheet/Cash Flow Metrics
Dates Ending 12/31/2015 Ending 12/31/2014 Ending 12/31/2013

Total Revenue 93,580.00 86,833.00 77,849.00
Cost of Revenue 33,038.00 27,078.00 20,385.00
Gross Profit 60,542.00 59,755.00 57,464.00
Opertating Income 17,978.00 27,653.00 26,556.00
Net Income 12,193.00 22,074.00 21,863.00

Cash and Short Term Investments 96,282.00 85,465.00 76,775.00
Total Inventory 2,902.00 2,660.00 1,938.00
Total Assets 176,223.00 172,384.00 142,431.00
Total Debt 35,292.00 22,645.00 15,600.00
Total Liability 96,140.00 82,600.00 63,487.00
Total Equity 80,083.00 89,784.00 78,944.00
Total Common Shares
Outstanding 8,027.00 8,239.00 8,328.00

Net Change in Cash -3,074.00 4,865.00 -3,134.00

Stock Price at Closing Date 44.15 41.7 34.54

Return on Equity (ROE) 14.36% 23.26% 28.89%
Price/Earnings Ratio 30.06 13.82 14.29
Quick Ratio or Acid Test 2.44 2.45 2.66
Table 3- Microsoft Historical Stock Analysis


b) Impact of News Article discussion
I read an article online titled, Heres How Microsoft Corporation Can Ensure Its
Upcoming Surface Pro 4 Topples Apple Ipad Pro published on September 23rd,
2015. The source of the information is from an independent business analyst website
called bidnessetc. It talks about how Apple just came out with the Apple Ipad Pro
and how my company, Microsoft, will soon be releasing a similar product. In the
article, the analyst goes through the features that the new Microsoft product will
have, that the Apple product is lacking. Stocks for Microsoft have always been very
consistent and no major recalls have happened for the company. I believe that the
stock will soon go up for the company because of this product. It would be very smart
to buy stock in the company before the product gets released. That way, after the
product becomes really popular, stock price will go up and you will automatically
make money.
Darrell, Larry. "Here's How Microsoft Corporation Can Ensure Its Upcoming
Surface Pro 4 Topples Apple IPad Pro." Bidness Etc. N.p., 23 Sept. 2015. Web. 23
Sept. 2015.
Task 3: Competitive Analysis

a) Stock Price Analysis Table
Stock Price Analysis

Closing Date MSFT AAPL ADBE
July 1, 2014 $41.86 $93.52 $73.01
July 30, 2014 $43.58 $98.15 $71.89
August 29, 2014 $45.43 $102.50 $71.90
September 30, 2014 $46.36 $100.75 $69.19
October 30, 2014 $46.05 $106.98 $68.57
November 28, 2014 $47.81 $118.93 $73.68
December 30, 2014 $47.02 $112.52 $73.08
January 30, 2015 $40.40 $117.16 $70.13
February 27, 2015 $43.85 $128.46 $79.10
March 30, 2015 $40.96 $126.37 $73.60
April 30, 2015 $48.64 $125.15 $76.06
May 29, 2015 $46.86 $130.28 $79.09
June 30, 2015 $44.15 $125.42 $81.01
July 30, 2015 $46.88 $122.37 $81.29
Table 4- Competitor Comparison Data

b) Competitive Stock Price Graph
Figure 1- Stock Price Analysis

Task 4: Assessing your stock

a) Question 4d
I think that the Microsoft Corporation is in good standing right now and has been for
awhile. It is a very competitive market to be in and they have maintained their status for
awhile. Sure, their stock may fluctuate up and down within a year, but this just shows that
it is a healthy company. The stocks are inconsistent and not on a constant upward trend
but that is very rare for a computer company like Microsoft to be like. It is very difficult
to always be on their toes thinking of new and innovative products to out due the other
companies. When these new products come out, who says that they wont have some
errors? If the product has a glitch, the customer may write a bad review online which
may lead to stock decreasing majorly.
b) Question 4e
I do agree to some extent that Microsoft sticks with what it knows. It started off with
basic computer programming and some gaming. They have now had to compete with
other companies to further enhance their products to meet the public needs. I believe that
Microsoft did venture out of its comfort zone a little when introducing certain products.
They used enough of their old ideas to support it so that it wasnt a product way outside
of their market. Now Microsoft has come a long way and has introduced products like the

phone, Xbox one and 360, tablet, Microsoft Office 2015, and more. They have developed
these ideas all with highly experienced staff and innovations. If the company just stuck
with what it knew when it first started, it would not be a successful company what so
ever.
c) Question 4i
If Microsoft adjusted their prices to inflation, I am not sure of how the public
would react. The thing with a company like Microsoft is that they have so many close
competitors. If they increased their price to inflation when they first started, I think
they would be able to get away with it because there werent as many close
competitors out there. Although today, many students, teachers, kids, and parents use
Microsoft Office as their main way of presenting projects and displaying data, there
are still many other programs to choose from if one of the companies become too
expensive. They can easily go right to the app store to find an alternative app for
writing papers. So in my opinion, Microsoft shouldnt increase their prices to
inflation because it is too risky. That is not saying that they can not because it may be
very well true that Microsoft is a very popular, widely used program that could with
stain a price raise.

Abp #1

Uploaded by

Copyright:

Available Formats

Abp #1

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Abp #1

Uploaded by

Copyright:

Available Formats

Applied Business Project 1 Financial Analysis

Submit your ABP-1 report to TurnItIn as a PDF file

Task 1: Current Company Profile

Company Name Microsoft Corporation

Stolz, Molly Page 1 of 6

Stolz, Molly Page 2 of 6

Task 2: Historical Stock Analysis and Fundamentals

a) Income/Balance Sheet/Cash Flow Metrics

Dates Ending 12/31/2015 Ending 12/31/2014 Ending 12/31/2013

Table 3- Microsoft Historical Stock Analysis

Stolz, Molly Page 3 of 6

b) Impact of News Article discussion

Task 3: Competitive Analysis

Stock Price Analysis

Stolz, Molly Page 4 of 6

b) Competitive Stock Price Graph

Figure 1- Stock Price Analysis

Task 4: Assessing your stock

Stolz, Molly Page 5 of 6

Stolz, Molly Page 6 of 6

You might also like