Kate Reigle November 29, 2011. About the Company Develops the Windows PC operating system, the Office suite of productivity software, and enterprise server.
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Presentation on theme: "Kate Reigle November 29, 2011. About the Company Develops the Windows PC operating system, the Office suite of productivity software, and enterprise server."— Presentation transcript:
About the Company Develops the Windows PC operating system, the Office suite of productivity software, and enterprise server products The Windows PC and Office franchises collectively account for nearly 60% of the firm's revenue, and the server and tools business contributes 24%. Other businesses include: Xbox 360, Bing, business software, and software for mobile devices.
Strengths Brand Recognition Rapid product innovation Microsoft Office Customer Support
Weaknesses Slow to realize opportunities – Google vs. Bing Insignificant presence in the smartphone market
Opportunities Xbox 360 video game Smartphone market Cloud computing
Threats Apple products Other manufacturers such as IBM, Sun, and Oracle Disappearing need for PCs due to increase in mobile technology Piracy
Recent News Partnering with TechStars to leverage the Kinect in different ways Operation in Our Sites Regulation Oct. 20: first time Microsoft has posted a year- over-year gain in Windows revenue since the end of 2010. – Revenue in the Windows division grew nearly 2%
Checklist Meets 6/10 criteria Criteria Requirements:CompanyIndustryGood or Bad Solvency and Financial Leverage Ratios: Current Ratio > 12.61.99 Debt Ratio < Industry Average20.8814.36BAD Efficiency Ratios: Total Asset Turnover > Industry Average0.720.75BAD Inventory Turnover > Industry Average14.7513739.11BAD Profitability Ratios: Net Profit Margin > Industry Average29.1717.46 Return on Asset (ROA) > Industry Average23.7712.44 Return on Equity (ROE) > Industry Average44.8422.61 Growth Ratio (5 years): Historical EPS Growth > Industry Average17.636.99 Historical Revenue Growth > Industry Average9.5711.77BAD Projected EPS Growth >10%* and > industry Average-- Other Informative Data: P/E10.213.8 P/B44 PEG0.8-- Fair Value Estimate32-- Current Price (11/28/2011)24.81 Purchase Price25.32 Dividend0.8 Dividend Yield >2%**2.31.4 Shares Owned75