Health finance

Executive Summary

Purpose
The report summarizes the information from the comparative and industry analysis
between Apple Inc. and Microsoft Corporation. This analysis method is based on assessing
important financial characteristics such as the ratio of specific figures in financial statements, the
tendencies in the given field, and other factors determining these top tech companies’ probable
future performance and investment attractiveness. The Equity Analyst Project consists of two
main parts: Typically, these are comparison analyses and industry analyses. Based on financial
measures, the comparative research compares Apple Inc. with Microsoft Corporation to ascertain
their current positions and operational performances. The technology sector is the subject of the
industry study, which identifies macro factors influencing industry players.
Findings
The findings from the comparison of the Apple Inc. and Microsoft Corporation balance
sheets show that both companies are financially stable yet different. Microsoft, therefore, has a
considerably higher working capital figure of $82,794 million; this indicates that Microsoft is
less constrained in terms of short-term operations than Apple. However, Apple’s current ratio has
been estimated to be 2.0733, which is greater than Microsoft’s 1.6667, suggesting that Apple has
a slightly better ability to meet its short-term obligations using its current assets than Samsung
Electronics. This means that it is only slightly more favorable for Apple in terms of present net
liquidities despite Microsoft having a thicker working capital buffer.
Additionally, Apple’s asset turnover was 0.4882, higher than Microsoft’s 0.1835,
indicating a superior ability on the part of the business to generate income from its assets. The
fact that Apple has an ROE of 0.292 and Microsoft scored zero demonstrates that it is far more

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effective in its tool use, further supporting its efficiency. An ROA of 0.0985 demonstrates
Apple’s ability to turn shareholder equity into earnings. Similarly, Apple has a greater efficiency
in using its assets to generate profit (ROA) of 0.1375 compared to Microsoft’s ROA of 0.0501.
Hence, Apple has relatively better operational efficiency and profitability, making it a better
investment opportunity than Microsoft, though the latter has a better liquidity position.

Industry Analysis

Economic and market factors
The state of the economy affects this sector, whose consumer and company spending
through its operations is heavily cynical. Given the present economic expectations, which may
include interest rate increases, moderate economic growth is a result (Ma, 2023). This would
have an impact on consumer spending on technological products. Nevertheless, we are seeing
constant digitalization in different spheres and the prevalence of remote working; thus, the steady
demand for technologies remains high (Randewich, 2024). Additionally, supply chain
interruptions remain a significant source of worry, even if big businesses are now taking
appropriate action to address these issues.
Trends in Industries and Company Performance Expectations
Artificial intelligence, cybersecurity, and cloud computing trends are major growth
prospects for technology companies. Apple Inc. was successful because it had a firm brand
name, a vast sales network, and constant product development. This makes it conducive for a
company to grow in the long run. Devices such as iPhones, Mac computers, and music
streaming, including Apple Music, cause consistent and repeated revenues. On the other hand,
Microsoft Corporation’s control over software, cloud services (Azure), and productivity tools
(Office 365) guarantees constant revenue increments. Investments in AI, cybersecurity, and

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working from home and on-premise also add to Microsoft’s strength in the market (Ma, 2023).
Altogether, both companies are ready to respond to the growth prospects in the context of the
further progression of digitalization, cloud services, and other developments in the IT industry.
Professional Recommendations
In terms of financial health, Apple has relatively higher liquidity, efficiency, and
profitability ratios. A well-developed brand image, a substantial product range, and a
continuously developing service segment make it probable that the company is a more attractive
investment for a better ROI in the next fiscal year (Randewich, 2024). Apple has a strong ROE
and ROA, demonstrating strong corporate management and building a foundation for solid
profit