Liquidity: Oracle had the advantage for each of the six liquidity ratios with the exception of current cash debt coverage ratio for which Microsoft had an advantage at 0.98, compared to Oracle's 0.78. Oracle had a slight advantage in current ratio as evidenced by the $2.76 in current assets it had for every dollar in current liabilities while Microsoft had $2.60 in current assets for every dollar in current liabilities. Oracle turned its inventory over around 30 times during the year and had around 12 days in inventory, while Microsoft turned its inventory over around 15 times and had about 25 days in inventory. Oracle also collected its receivables about 6 times during the year, while Microsoft collected its receivables 5 times during the year. Oracle also needed shorter time to collect receivables, at around 63 days, while Microsoft needed 73 days.

Solvency: Microsoft had the advantage for each of the four solvency ratios with the exception of debt to total assets ratio for which Oracle had a slight advantage at 45.3%, compared to Microsoft's 47.5%. For the other three ratios, Microsoft's advantage was rather huge. Microsoft had its cash debt coverage ratio at 0.59 times, while Oracle had it at 0.35 times. Microsoft could cover its interest expense around 96 times with income before interest and taxes, while Oracle could only cover its interest expense around 15 times with its income before interest and taxes. Microsoft had around $19.5 billion in free cash flow which could allow it to pay dividends or expand operations, while Oracle had a much less $9.7 billion in free cash flow.

Profitability: Microsoft had the advantage for each of the eight profitability ratios with the exception of price-earnings ratio for which oracle had it at 20.25, compared to Microsoft's 9.52. Microsoft's earnings per share was $2.73, more than Oracle's $1.69. Microsoft could