Apple Microsoft Profit Margin 25% 33% Operating Margin 30% 40% ROA 20% 15% ROE >100% 45% Current Ratio 0.9 2.5 Debt/Equity High (due to share buybacks) 0.5 P/E Ratio 28 34 Analysis: It's clear that Microsoft has a stronger operating and net profit margin compared to Apple, which suggests Microsoft is more efficient at generating profits. While Apple's ROE is much higher due to share buybacks reducing its equity, Microsoft's ROE indicates solid operational performance without such financial adjustments. In terms of liquidity and risk, Microsoft stands out with a significantly higher current ratio and a lower debt/equity ratio, showing lower financial risk and better liquidity management compared to Apple. The higher P/E ratio of Microsoft might be justified by its consistent growth, superior profitability, and lower financial risk, suggesting that investors expect stronger future earnings from Microsoft relative to Apple