Industry Averages and Financial Ratios Paper
Company we have chosen Microsoft
Write a 275 word response about how the company you selected performed compared with the industry
your paper must have at least two references from academically peer-reviewed sources. Be sure to properly cite your sources of financial information.
SIC: 7372
SIC Description: Prepackaged software
Asset Range: All Asset Ranges within SIC Group
2010 2011 2012 2013 2014
Solvency Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower
Quick Ratio 1.9 1.2 0.8 1.8 1.1 0.5 1.6 1 0.5 2 1 0.4 1.9 1 0.3
Current Ratio 2.6 1.8 1 2.5 1.5 0.8 2.6 1.3 0.7 2.7 1.3 0.6 2.5 1.3 0.6
Current Liabilities / Net Worth (%) 26.2 53.8 107.7 22.6 51.1 117.5 24.6 49.7 103.9 21.7 44.4 98.3 26 54.9 94.2
Current Liabilities / Inventory (%) 522.6 999.9 999.9 524.3 999.9 999.9 497 999.9 999.9 305.5 999.9 999.9 630.8 999.9 999.9
Total Liabilities / Net Worth (%) 38.9 69 146.8 34.8 69.2 169.6 36.3 67.5 149.9 33.3 81 166.9 31.2 82.9 150.1
Fixed Assets / Net Worth (%) 3.7 8.6 18.8 4.8 10.3 23.5 5 10 27.9 5.4 11.4 26.3 4.3 10.9 25
Efficiency Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower
Collection Period (days) 40.7 65.5 80.5 47.1 66.8 85.1 34.5 56.9 78.5 31.8 55.1 81.8 39.8 61.3 88
Sales / Inventory (times) 160.2 59.8 18.5 182.8 66.7 26.3 215.3 64.7 18.4 204.4 54.8 15.4 184.4 41.9 10.2
Assets / Sales (%) 49 107.1 188.1 65.7 133.1 203 47.8 118.7 206.2 58.4 125.2 212.2 72.3 143.6 222.8
Sales / Net Working Capital (times) 8 3.6 2.1 8 3.6 1.9 11.2 4 1.8 9.4 3.4 1.6 7.6 2.6 1.4
Accounts Payable / Sales (%) 1.5 3.5 9.3 2.2 4 11.5 2 4.9 12.8 2.4 4.9 11.6 1.9 4.1 11.5
Profitability Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower
Return on Sales (%) 12.1 4.5 -6.5 10.9 2 -17.6 9.3 0.8 -33.3 9.4 -0.9 -33.2 6.9 -7.3 -53.1
Return on Assets (%) 11.4 3.8 -6 9.8 2.4 -16.1 7.8 0.4 -46.9 7.9 -2.7 -65.3 4.4 -7.5 -71
Return on Net Worth (%) 29.5 9.7 -2.2 23.9 8.9 -7.9 21.4 7.6 -11.5 16.6 5.8 -16.9 11.6 -0.7 -29.8
Median Variance 2010 2011 2012 2013 2014
Solvency Median 2011 2012 2013 2014 Median 2010 2012 2013 2014 Median 2010 2011 2013 2014 Median 2010 2011 2012 2014 Median 2010 2011 2012 2013
Quick Ratio 1.2 8.3 16.7 16.7 16.7 1.1 -8.3 9.1 9.1 9.1 1 -16.7 -9.1 0 0 1 -16.7 -9.1 0 0 1 -16.7 -9.1 0 0
Current Ratio 1.8 16.7 27.8 27.8 27.8 1.5 -16.7 13.3 13.3 13.3 1.3 -27.8 -13.3 0 0 1.3 -27.8 -13.3 0 0 1.3 -27.8 -13.3 0 0
Current Liabilities / Net Worth (%) 53.8 2.7 4.1 9.4 -1.1 51.1 -2.7 1.4 6.7 -3.8 49.7 -4.1 -1.4 5.3 -5.2 44.4 -9.4 -6.7 -5.3 -10.5 54.9 1.1 3.8 5.2 10.5
Current Liabilities / Inventory (%) 999.9 0 0 0 0 999.9 0 0 0 0 999.9 0 0 0 0 999.9 0 0 0 0 999.9 0 0 0 0
Total Liabilities / Net Worth (%) 69 -0.2 1.5 -12 -13.9 69.2 0.2 1.7 -11.8 -13.7 67.5 -1.5 -1.7 -13.5 -15.4 81 12 11.8 13.5 -1.9 82.9 13.9 13.7 15.4 1.9
Fixed Assets / Net Worth (%) 8.6 -1.7 -1.4 -2.8 -2.3 10.3 1.7 0.3 -1.1 -0.6 10 1.4 -0.3 -1.4 -0.9 11.4 2.8 1.1 1.4 0.5 10.9 2.3 0.6 0.9 -0.5
Efficiency Median 2011 2012 2013 2014 Median 2010 2012 2013 2014 Median 2010 2011 2013 2014 Median 2010 2011 2012 2014 Median 2010 2011 2012 2013
Collection Period (days) 65.5 2 -13.1 -15.9 -6.4 66.8 -2 -14.8 -17.5 -8.2 56.9 13.1 14.8 -3.2 7.7 55.1 15.9 17.5 3.2 11.3 61.3 6.4 8.2 -7.7 -11.3
Sales / Inventory (times) 59.8 -11.5 -8.2 8.4 29.9 66.7 11.5 3 17.8 37.2 64.7 8.2 -3 15.3 35.2 54.8 -8.4 -17.8 -15.3 23.5 41.9 -29.9 -37.2 -35.2 -23.5
Assets / Sales (%) 107.1 -26 -11.6 -18.1 -36.5 133.1 26 14.4 7.9 -10.5 118.7 11.6 -14.4 -6.5 -24.9 125.2 18.1 -7.9 6.5 -18.4 143.6 36.5 10.5 24.9 18.4
Sales / Net Working Capital (times) 3.6 0 -11.1 5.6 27.8 3.6 0 -11.1 5.6 27.8 4 11.1 11.1 15 35 3.4 -5.6 -5.6 -15 23.5 2.6 -27.8 -27.8 -35 -23.5
Accounts Payable / Sales (%) 3.5 -0.5 -1.4 -1.4 -0.6 4 0.5 -0.9 -0.9 -0.1 4.9 1.4 0.9 0 0.8 4.9 1.4 0.9 0 0.8 4.1 0.6 0.1 -0.8 -0.8
Profitability Median 2011 2012 2013 2014 Median 2010 2012 2013 2014 Median 2010 2011 2013 2014 Median 2010 2011 2012 2014 Median 2010 2011 2012 2013
Return on Sales (%) 4.5 2.5 3.7 5.4 11.8 2 -2.5 1.2 2.9 9.3 0.8 -3.7 -1.2 1.7 8.1 -0.9 -5.4 -2.9 -1.7 6.4 -7.3 -11.8 -9.3 -8.1 -6.4
Return on Assets (%) 3.8 1.4 3.4 6.5 11.3 2.4 -1.4 2 5.1 9.9 0.4 -3.4 -2 3.1 7.9 -2.7 -6.5 -5.1 -3.1 4.8 -7.5 -11.3 -9.9 -7.9 -4.8
Return on Net Worth (%) 9.7 0.8 2.1 3.9 10.4 8.9 -0.8 1.3 3.1 9.6 7.6 -2.1 -1.3 1.8 8.3 5.8 -3.9 -3.1 -1.8 6.5 -0.7 -10.4 -9.6 -8.3 -6.5