Joshua Branton

Professor DuBois

BUS3020-V04-NF21

October 29th, 2021

Ratio Analysis

APPLE:

Debt Ratio: $105,392,000 / $323,890,000 = 0.325 = 32.5%

Debt-to-Equity Ratio: $105,392,000 / $65,339,000 = 1.613 = 161.3% (In this case, their

liabilities outweighed their common stock equity. Would that not mean the ratio would be

negative? Just curious.)

Time Interest Earned Ratio: $66,288,000 / $2,873,000 = 23.073

Gross Profit Margin: ($274,150,000 - $170,143,000) / $274,150,000 = 0.379 = 37.9%

Operating Profit Margin: $57,411,000 / $274,150,000 = 0.209 = 20.9%

MICROSOFT:

Debt Ratio: $162.6Bil / $162.7Bil = 0.999 = 99.9%

Debt-to-Equity Ratio: $162.2Bil / $87.71Bil = 1.864 = 186.4%

Time Interest Earned Ratio: $61,271,000 / $2,591,000 = 23.65

Gross Profit Margin: ($143,015,000 – $52,232,000) / $143,015,000 = 0.635 = 63.5%

Operating Profit Margin: $52,959Bil / 143.02Bil = 0.370 = 37%

It is really cool to see these organizations ratios side by side. It’s cool to see the

difference in income in the two organizations and how close some of them are. Apple’s debt

ratio seems to be a lot better than Apples. While Microsoft made more, their liabilities come
close to their income. To be honest, I am not so familiar with some of these ratios, I do know that

liabilities should not outweigh income. This was definitely a cool exercise and worth the work.

Who knows, I might be the next Warren Buffet with all this financial digging!