Required Reading:2016 R June Financial Statement

Comparative Comparison of Google and Microsoft
Both companies work in technology space that seems to become on the most lucrative plane of
businesses at the moment. The companies have emerged as one of the most profitable entities in
corporate finance in recent times with share price rising rapidly and having a market
capitalization on each of above half a trillion.
The comparison of performance and valuation is based on a myriad of
Profitability and Solvency
Net income. Microsoft has a higher average over the years however Google can maintain a stable
profile not as volatile as Microsoft with Return on Equity in Google kept to an average of 13%
while Microsoft tumbled from 24.6% in 2014 t15.2% in the next year.
Evaluation Profitability about equity
DuPont Analysis
This is a mode of performance measurement that encompasses three aspects of the business. The
aspects are operation efficiency using profit margin, asset utilization using asset turnover and
financial leverage measured by the equity multiplier.
In this case, we have that Google has a higher

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