1. FINANCIAL ANALYSIS BY EBBONY PAGE

2. Overview  History of Organization  CEO & Mission Statement  Products and Services  Current Events  Horizontal Analysis of Balance Sheet, Income Statement and Cash Flow  Financial Ratios  Competition  Strengths  Recommendation of Improvements  References

3. Microsoft History  Founders: Bill Gates and Paul G. Allen.  Founded in 1975  Derived the name from the words microcomputer and software  Produced MS-DOS for IBM PC in 1981  Publicly owned corporation in 1986  Released windows in 1995  By mid-1990s had become one of the most powerful and profitable companies in American history

4. CEO & MISSION STATEMENT  Satya Nadella was named Chief Executive Officer of Microsoft in February 2014  Joined Microsoft in 1992  Mission Empower every person and every organization on the planet to achieve more  Strategy Build best-in-class platforms and productivity services for a mobile-first, cloud-first world  Ambitions Reinvent productivity & business processes, build the intelligent cloud platform, create more personal computing

5. PRODUCTS & SERVICES  Microsoft Office  Xbox 360  Other products include:  operating systems for computing devices  Servers  Phones and other intelligent devices  server applications for distributed computing environments  productivity applications  business solution applications  desktop and server management tools  software development tools  online advertising

6. CURRENT EVENTS  Partnership with Hewlett Packard Enterprises – December 1, 2015 Microsoft announced its partnership with Hewlett Packard Enterprise for new innovation in Hybrid Cloud computing through Microsoft Azure, HPE infrastructure and services, and new program offerings. The extended partnership appoints Microsoft Azure as a preferred public cloud partner for HPE customers while HPE will serve as a preferred partner in providing infrastructure and services for Microsoft’s hybrid cloud offerings.  Microsoft Position Cut by Braun Stacey Associates – Third Quarter 2015 Braun Stacey Associates lowered its position in shares of Microsoft by 30.0% during the third quarter, according to its most recent disclosure with the SEC. Microsoft accounts for about 1.5% of Braun Stacey Associates’ portfolio, making the stock its 3rd largest position

7. CURRENT EVENTS  Microsoft Announces Quarterly Dividend – December 2, 2015 Microsoft announced that its board of directors declared a quarterly dividend of $0.36 per share. The dividend is payable March 10, 2016, to shareholders of record on Feb. 18, 2016. The ex-dividend date will be Feb. 16, 2016.  Microsoft Holds Annual Shareholder Meeting – December 2, 2015 On December 2, 2015 Microsoft held its annual shareholders meeting. Chief Executive Officer Satya Nadella addressed shareholders and highlighted the company’s strategic and cultural transformation that position it for new growth opportunities. At the meeting the company’s shareholders elected eleven directors to serve until the next annual meeting of shareholders. They also approved the fiscal year 2015 compensation of the company’s named executive officers and ratified the selection of Deloitte & Touche LLP as the company’s independent auditor.

8. Financial Highlights Year Ended June 30,20132012% Change Revenue$77,849$ 73,7235.60% Operating income$26,764$ 21,763 22.98% Net income$21,863$ 16,978 28.77% Diluted earnings per share$2.58$ 2.00 29.00% Cash dividends declared per share$0.92$ 0.80 15.00% Cash, cash equivalents, and short-term investments$77,022$ 63,040 22.18% Total assets$142,431$ 121,271 17.45% Long-term obligations$ 26,070$ 22,220 17.33% Stockholders' equity$ 78,944$ 66,363 18.96%

9. Financial Ratios Ratios20132012 Liquidity Ratios Current Ratio 2.712.60 Quick Ratio 2.662.57 Debt Ratios Debt to Equity Ratio 0.200.18 Debt Service Coverage Ratio 64.0659.60 Profitability Ratios Return on Sales Ratio 28.08%23.03% Return on Equity Ratio 0.280.23 Gross Margin 74.00%76.00% Market Value Ratios Earnings Per Share 2.622.03 Price/Earnings Ratio 12.1614.36 Asset Management Ratios Days Sales Outstanding 77.9876.16 Account Receivable Turnover Ratio 4.684.79 Inventory Turnover Ratio 13.1713.97

10. Competitors, Strengths and Improvements Strengths:  Legacy  Leadership  Trusted Names Improvements:  Mobility/Cloud storage  Gaming  Devices

11. References About Microsoft. (n.d.). Retrieved December 6, 2015, from http://www.microsoft.com/en-us/abouthttp://www.microsoft.com/en-us/about Cash Ratio | Analysis | Formula | Example. (n.d.). Retrieved January 18, 2016, from http://www.myaccountingcourse.com/financial-ratios/cash-ratio http://www.myaccountingcourse.com/financial-ratios/cash-ratio Current Ratio - AccountingTools. (n.d.). Retrieved January 18, 2016, from http://www.accountingtools.com/current-ratiohttp://www.accountingtools.com/current-ratio Days Sales Outstanding (DSO) Ratio | Formula | Calculation. (n.d.). Retrieved January 18, 2016, from http://www.myaccountingcourse.com/financial-ratios/days-sales-outstanding http://www.myaccountingcourse.com/financial-ratios/days-sales-outstanding Debt to Equity Ratio - AccountingTools. (n.d.). Retrieved January 18, 2016, from http://www.accountingtools.com/debt-to-equity- ratiohttp://www.accountingtools.com/debt-to-equity- ratio Earnings Per Share | Formula | Analysis | Example. (n.d.). Retrieved January 18, 2016, from http://www.myaccountingcourse.com/financial-ratios/earnings-per-share http://www.myaccountingcourse.com/financial-ratios/earnings-per-share Financial Statement Analysis - Liquidity Ratios. (n.d.). Retrieved January 10, 2016, from http://www.creditguru.com/ratios/ratiopg1.htm http://www.creditguru.com/ratios/ratiopg1.htm Gross Margin Ratio | Formula | Analysis | Example. (n.d.). Retrieved January 18, 2016, from http://www.myaccountingcourse.com/financial-ratios/gross-margin-ratio http://www.myaccountingcourse.com/financial-ratios/gross-margin-ratio Hewlett Packard Enterprise and Microsoft announce plans to deliver integrated hybrid IT infrastructure. (2015, December 1). Retrieved December 13, 2015, from http://news.microsoft.com/2015/12/01/hewlett-packard-enterprise-and-microsoft- announce-plans-to-deliver-integrated-hybrid-it-infrastructure/http://news.microsoft.com/2015/12/01/hewlett-packard-enterprise-and-microsoft- announce-plans-to-deliver-integrated-hybrid-it-infrastructure/ Kennedy, N. (2015, December 13). Microsoft Co. (MSFT) Position Cut by Braun Stacey Associates. Retrieved December 13, 2015, from http://www.watchlistnews.com/microsoft-co-msft-position-cut-by-braun-stacey-associates/322501/http://www.watchlistnews.com/microsoft-co-msft-position-cut-by-braun-stacey-associates/322501/ Microsoft - History of a Computing Giant. (n.d.). Retrieved December 6, 2015, from http://inventors.about.com/od/CorporateProfiles/p/Microsoft-History.htm http://inventors.about.com/od/CorporateProfiles/p/Microsoft-History.htm

12. References Microsoft announces quarterly dividend. (2015, December 2). Retrieved December 13, 2015, from http://news.microsoft.com/2015/12/02/microsoft-announces-quarterly-dividend/ http://news.microsoft.com/2015/12/02/microsoft-announces-quarterly-dividend/ Microsoft Corp. MSFT (U.S.: Nasdaq). (n.d.). Retrieved December 6, 2015, from http://quotes.wsj.com/MSFT/company-peoplehttp://quotes.wsj.com/MSFT/company-people Microsoft Corporation. (2015). In Encyclopedia Britannica. Retrieved from http://www.britannica.com/topic/Microsoft- Corporationhttp://www.britannica.com/topic/Microsoft- Corporation Microsoft Corporation. (n.d). Microsoft holds annual shareholder meeting. (2015, December 2). Retrieved December 13, 2015, from http://news.microsoft.com/2015/12/02/microsoft-holds-annual-shareholder-meeting-2 http://news.microsoft.com/2015/12/02/microsoft-holds-annual-shareholder-meeting-2 Price Earnings P/E Ratio | Analysis | Formula | Example. (n.d.). Retrieved January 18, 2016, from http://www.myaccountingcourse.com/financial-ratios/price-earnings-ratio http://www.myaccountingcourse.com/financial-ratios/price-earnings-ratio Return on Sales Ratio Formula | Analysis | Example. (n.d.). Retrieved January 18, 2016, from http://www.myaccountingcourse.com/financial-ratios/return-on-sales http://www.myaccountingcourse.com/financial-ratios/return-on-sales Satya Nadella. (2014, September 15). Retrieved December 6, 2015, from http://news.microsoft.com/exec/satya-nadella/http://news.microsoft.com/exec/satya-nadella/ The Brief History of Microsoft. (2011, July 28). Retrieved December 6, 2015, from http://www.techbitnbyte.com/the-brief- history-of-microsoft/http://www.techbitnbyte.com/the-brief- history-of-microsoft/