According to Morningstar, there are several financial ratios to help measure a company's level of profitability. Choose a publicly traded company and review its financial statements (found in the annual report on the company's website). Based on your research of the company's financial reports, indicate how profitable your company is by the following ratios: gross margin, operating margin, net margin, return on assets, and return on equity.

How does your company compare to its industry averages? Compare the actual to budgeted revenues and expenses. Finally, what would you, the controller, recommend for any improvement for your company?

Answer rating: 100% (QA)

Answer 1 For this assessment I have chosen to review the financial statements of Microsoft Corporation Microsofts gross margin ratio is 61 indicating that their profit margin before operating expenses ... View the full answer