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Ratios Earnings #

Oracle Per of

Microsoft Share

Detailed = Net

Comments Income outstanding

shares

$4,274 $14,065 Microsoft has better EPS as compared to Oracle. The net income of MS is almost three times where as the total number of shares 5170 $0.83 outstanding is less than double. 9,742 $1.44

Current Current

Ratio

Current

Assets Liabilities

$12,883 $40,168 The current ratio of MS is better than Oracle. The current liabilities of MS is close to 2.5 times whereas the current assets is more than 3 times which makes the current ratio of MS better

than $9,387 1.37

Oracle. $23,754 1.69

Gross Profit Rate = Gross Profit The Gross profit of oracle is slightly better as compare to MS. Even though the net sales and gross profit is much lower in case of Oracle, gross profit as compared to net sales is comparatively higher in case of Oracle. Net $14,647 $17,996 81.39% Sales $40,429 $51,122 79.08%

Profit Margin Ratio = Net Income The profit margin ratio shows the profitability of the company and

also than Net

an

important as

ratio

from net

the

investors is

perspective. The profit Margin ratio of MS is better Oracle because income comparatively higher in case of MS than Oracle. Sales $14,065 $51,122 27.51%

$4,274 $17,996 23.75%

Inventory Turnover Ratio = Cost of sales Inventory turnover ratio shows how many times the inventory is replaced during a period. Since Oracle is not carrying any inventory, the ratio is nil in case of Oracle and 9.49 in case of MS which shows a better position in case of MS. Inventory $3,349 $10,693

$0 NA

$1,127 9.49

Days in Inventory = Average Inventory Days in inventory shows how long a company takes to turn its inventory. It is better if a company is having lower days in inventory. In case of Oracle,...