Click the link below to view the latest Microsoft Corporation’s (MSFT) Annual Balance Sheet: http://finance.yahoo.com/q/bs?s=msft+Balance+Sheet&annual. Choose and compute 5 of the following from the Microsoft balance sheet. Explain how they are useful tools in assessing firm performance and then give your own assessment of Microsoft’s performance for the most recent year.

1. debt-equity ratio

2. Enterprise value

3. Earnings per share

4. Operating margin

5. Net profit margin

6. Accounts receivable days

7. Accounts payable days

8. Inventory day’s interest coverage ratio

9. Return on equity

10. Return on assets

11. Price-earnings ratio

12. market-to-book ratio

Answer rating: 100% (QA)

For Microsoft the following are the five most important ratios which we would analyze 1 Return on Equity ROE 2 Return on Asset ROA 3 Operating margin ... View the full answer