Question: Let s think: If Microsoft's return on equity is higher than Apple's, is it due to stronger profits or more aggressive leverage? If its inventory
Lets think: If Microsoft's return on equity is higher than Apple's, is it due to stronger profits or more aggressive leverage? If its inventory turnover is slower, does that signal inefficient operations or a different business model?
These comparisons invite deeper questions: Why might two successful firms have very different ratios? What story do the numbers tell about each companys strategy? How do we distinguish between temporary fluctuations and longterm trends?
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