The first analysis we will perform is the current ratio, which is calculated by dividing current assets by current liabilities. This is a type of a liquidity ratio. Liquidity ratios measure a company’s ability to pay off short-term debt. A liquidity ratio can also indicate …show more content…
Furthermore, the company believes in empowering and encouraging employee to become innovated in their area of expertise. The organization have seven major employee groups in addition to over 40 networks where employees help the company to construct a sympathetic community across Microsoft Corporation (Microsoft, 2016).
When one is trying to determine the health of a company and the risk involved either in terms of employment or investment opportunity it is wise to either view or create a Financial Statement Analysis. In evaluating each of the methods, as a team it was recognized that each part is a snippet of the financial structure of each of the companies. By analyzing and then comparing the data from the solvency ratio, liquidity ratio and a probability ratio, the team could make a firm decision in Microsoft regarding the present and future financial