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Apple vs Microsoft

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Financial Analysis – Apple Vs Microsoft

Table of Contents 1. Introduction 3 2. Key elements of financial performance 3 a. Balance Sheet 3 i. Apple 3 ii. Microsoft 4 b. Income Statement 4 i. Apple 4 ii. Microsoft 5 c. Cash Flow Statement 5 i. Apple 5 ii. Microsoft 6 3. Interpretation of the financial information 6 a. Return 6 i. Apple 6 ii. Microsoft 7 b. Operation 7 i. Apple 7 ii. Microsoft 7 4. Analysis and Comparison on financial statement analysis 8 a. Liquidity 8 b. Solvency 9 c. Efficiency 9 d. Profitability 10 e. Market Analysis 11 5. Limitation of this report 11 6. Conclusion 12 Appendix 1 – References 13 Appendix 2 – Financial Statement 13 a. Balance Sheet - Apple 13 b. Balance Sheet - Microsoft 14 c. Income Statement – Apple 16 d. Income Statement – Microsoft 17 e. Cash Flow Statement – Apple 18 f. Cash Flow Statement – Microsoft 19 g. Ratio – Apple 21 h. Ratio – Microsoft 25

1. Introduction
The objective of this report is to compare the financials of the two biggest computer applications company in the world, viz. Apple and Microsoft. Where Apple is famous for its path breaking products like iPhone, iPad, etc, Microsoft is known for its most used operating system Windows. Both companies in its place are highly respected and highly sought after for investors. Our company in the report will be Apple and its competitor as Microsoft. We will be comparing the financial performance of both the firms on different parameters like solvency, liquidity and profitability ratios. 2. Key elements of financial performance a. Balance Sheet i. Apple In millions | 2009-09 | 2010-09 | 2011-09 | 2012-09 | 2013-09 | Growth | Total current assets | 31555 | 41678 | 44988 | 57653 | 73286 | 18.36% | Total assets | 47501 | 75183 | 116371 | 176064 |

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