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what is the current ratio?

0 D E F 6/30/15 A B 1 Microsoft Corporation 2 Balance Sheet 3 (Thousand $) 4 5 Period Ending 6/30/17 6/30/16 6 7 Cash And Cash Equivalents 7,663,000 6,510,000 8 Short Term Investments 125,318,000 106,730,000 9 Net Receivables 19,792,000 18,277,000 10 Inventory 2,181,000 2,251,000 11 Other Current Assets 4,897,000 5,892,000 12 Total Current Assets 159,851,000 139,660,000 13 Long Term Investments 6,023,000 10,431,000 14 Property Plant and Equipment litie 23,734,000 18,356,000 15 Goodwill 35,122,000 17,872,000 ivab 16 Intangible Assets 10,106,000 3,733,000 nece 17 Accumulated Amortization 0 0 18 Other Assets 6,250,000 3,416,000 19 Deferred Long Term Asset Charges 0 0 kep: 20 Total Assets 241,086,000 193,468,000 21 22 Accounts Payable 14,024,000 13,036,000 23 Short/Current Long Term Debt 10,121,000 12,904,000 24 Other Current Liabilities 40,382,000 33,417,000 25 Total Current Liabilities 64,527,000 59,357,000 26 Long Term Debt 76,073,000 40,557,000 27 Other Liabilities 17,184,000 13,640,000 28 Deferred Long Term Lability Charges 10,908,000 7,917,000 29 Minority Interest 0 0 30 Negative Goodwill 0 0 bility t 31 Total Liabilities 168,692,000 121,471,000 Is and n 32 Stockholders' Equity inc statement balance sheet cash flow statement 5,595,000 90,931,000 17,908,000 2,902,000 5,461,000 122,797,000 12,053,000 14,731,000 16,939,000 4,835,000 0 3,117,000 174,472,000 12,385,000 7,484,000 29,778,000 49,647,000 27,808,000 13,544,000 3,390,000 0 0 94,389,000 valuation data financial ratios + D E F 2. Conduct time series and cross Microsoft 2016 Industry average 2017 2015 Time-series 60.59% 22.52% 18.54% 8.15% 5.56% 23.11% 8.15% $0.23 65.26% 20.65% 14.37% 7.82% 6.17% 19.94% 7.82% $0.20 50.20% 20.63% 14.40% 5.76% 5.79% 23.04% 22.81% $1.80 Deteriorating Improving improving Improving Improving Improving Improving Improving 1.30 1.20 2.21 2.30 1 1. Using Microsoft financial data, calculate the following financial ratios Oi 2 3 4 2017 5 Profitability ratios 6 Gross profit margin 62.22% 7 Operating profit margin 25.15% 8 Net profit margin 23.91% 9 ROA (typical) 8.92% 10 ROA (accounting) 4,46% e 11 ROE (typical) 31.04% 12 ROE (accounting) 8.92% 13 Diluted EPS $0.31 14 Liquidity ratios 15 Current ratio 16 Quick ratio 2.37 17 Activity ratios 18 Asset turnover (typical) 0.37 19 Asset turnover (accounting 0.19 20 Inventory turnover (typical) 15.59 21 Inventory turnover (accounting) 7.79 22 Average days of inventory (typical) 23.41 23 Average days of inventory (accounting) 46.83 24 Average collection period 0.22 25 Average payment period (approach 2) 0.16 26 Solvency/debt-management ratios 27 Debt to assets ratio 142.91% 28 Debt to equity ratio 109.75% 29 Financial leverage multiplier (FM) 3.48 30 Market ratios 31 Market to book ratio 32 PE ratio use diluted EPS) 0.07 33 PEG 0.17 34 Enterprise value ratio (using EBITDA) 19.18 0.44 0.22 14.88 7.44 24. 0.54 0.27 11.37 5.69 32.10 64.20 0.19 0.13 0.40 0.42 14.50 14.30 25.17 25.52 80.00 85.00 Deteriorating Deteriorating Improving Improving Deteriorating Deteriorating 0.22 0.15 159.27% 59.49% 2.84 184.84% 40.62% 2.55 75% 200% 4.00 Deteriorating Improving Improving beterioraties 0.10 0.55 18.04 1.65 1.65 15.20 12.96 1.08 8.60 Improving 36

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