Industry Averages and Financial Ratios Paper Microsoft Corporation Watch the Industry Averages and Financial Ratios video and use the industry classification from the financial services website to locate the company's SIC code on the U.S. Department of Labor's website. Find  the industry ratios for the company using the Dun & Bradstreet ®  Key Business Ratios link in the Week 2 Electronic Reserve Readings. If your company's SIC code does not appear in the dropdown menu, choose another company. Assume  the inventory ratio is based on a traditional inventory system, but globalized markets and the supply chain make it critical to adopt lean principles to create a more efficient system. Calculate  the 14 ratios (show your calculations) for the company using the two most recent annual financial statements found on the financial information website you used earlier. Be careful not to use quarterly information, and include ratios for both years. Note. You can access a downloadable Ratio Guide PDF by clicking the Help Guide link in the upper-right of the Dun & Bradstreet ®  Key Business Ratios window. Compare  the ratios for the company you selected with the appropriate industry ratios including profitability, solvency, and efficiency ratios shown on the Dun & Bradstreet ® report. Write  a 350-word response about how the company you selected performed compared with the industry. Company Quartiles 2009 2010 2011 Statement Sampling Samples: 0 Samples: 0 Samples: 0 Profitability & Return Measures Upper Median Lower Upper Median Lower Upper Median Lower Gross Margin (%) Net Profit Margin (%) Return on Equity (%) Return on Capital (%) Return on Assets (%) Solvency Upper Median Lower Upper Median Lower Upper Median Lower Long Term Debt / Capital Long Term Debt / Equity Total Debt / Total Capital Net Debt / Equity Financial Leverage Ratio Total Debt / Common Equity Total Capital Liquidity Upper Median Lower Upper Median Lower Upper Median Lower Current Ratio Quick Ratio Working Capital Upper Median Lower Upper Median Lower Upper Median Lower Net Working Capital Days Receivable (DSO) Management Effectiveness Upper Median Lower Upper Median Lower Upper Median Lower Asset Turnover Receivable Turnover Plant & Equipment Turnover Sales / Net Working Capital (times) Sales / Cash Sales / Inventory Sales / Working Capital Sales / Fixed Assets Bank & Insurance Ratios Upper Median Lower Upper Median Lower Upper Median Lower Total Equity / Total Assets (Banks) Long Term Debt / Equity Net Profit Margin (%) Median Variance Profitability & Return Measures Median 2010 2011 Median 2009 2011 Median 2009 2010 Gross Margin (%) 0 0 0 0 0 0 0 0 0 Net Profit Margin (%) 0 0 0 0 0 0 0 0 0 Return on Equ.

1. Industry Averages and Financial Ratios Paper
Microsoft Corporation
Watch
the Industry Averages and Financial Ratios video and use the
industry classification from the financial services website to
locate the company's SIC code on the U.S. Department of
Labor's website.
Find
the industry ratios for the company using the Dun & Bradstreet
®
Key Business Ratios link in the Week 2 Electronic Reserve
Readings. If your company's SIC code does not appear in the
dropdown menu, choose another company.
Assume
the inventory ratio is based on a traditional inventory system,
but globalized markets and the supply chain make it critical to
adopt lean principles to create a more efficient system.
Calculate
the 14 ratios (show your calculations) for the company using
the two most recent annual financial statements found on the
financial information website you used earlier. Be careful not to
use quarterly information, and include ratios for both years.
Note.
You can access a downloadable Ratio Guide PDF by clicking
the
Help Guide
link in the upper-right of the Dun & Bradstreet
®
Key Business Ratios window.

2. Compare
the ratios for the company you selected with the appropriate
industry ratios including profitability, solvency, and efficiency
ratios shown on the Dun & Bradstreet
®
report.
Write
a 350-word response about how the company you selected
performed compared with the industry.
Company Quartiles
2009
2010
2011
Statement Sampling
Samples: 0
Samples: 0
Samples: 0
Profitability & Return Measures

3. Upper
Median
Lower
Upper
Median
Lower
Upper
Median
Lower
Gross Margin (%)
Net Profit Margin (%)
Return on Equity (%)

4. Return on Capital (%)
Return on Assets (%)
Solvency
Upper
Median
Lower
Upper
Median
Lower
Upper
Median
Lower
Long Term Debt / Capital

5. Long Term Debt / Equity
Total Debt / Total Capital
Net Debt / Equity
Financial Leverage Ratio

6. Total Debt / Common Equity
Total Capital
Liquidity
Upper
Median
Lower
Upper
Median
Lower

7. Upper
Median
Lower
Current Ratio
Quick Ratio
Working Capital
Upper
Median
Lower
Upper
Median
Lower
Upper
Median
Lower

8. Net Working Capital
Days Receivable (DSO)
Management Effectiveness
Upper
Median
Lower
Upper
Median
Lower
Upper
Median
Lower
Asset Turnover

9. Receivable Turnover
Plant & Equipment Turnover
Sales / Net Working Capital (times)
Sales / Cash

10. Sales / Inventory
Sales / Working Capital
Sales / Fixed Assets

11. Bank & Insurance Ratios
Upper
Median
Lower
Upper
Median
Lower
Upper
Median
Lower
Total Equity / Total Assets (Banks)
Long Term Debt / Equity
Net Profit Margin (%)

12. Median Variance
Profitability & Return Measures
Median
2010
2011
Median
2009
2011
Median
2009
2010
Gross Margin (%)
0
0
0
0
0
0
0
0

13. 0
Net Profit Margin (%)
0
0
0
0
0
0
0
0
0
Return on Equity (%)
0
0
0
0
0
0
0
0
0
Return on Capital (%)
0
0
0
0
0
0
0
0
0
Return on Assets (%)

14. 0
0
0
0
0
0
0
0
0
Solvency
Median
2010
2011
Median
2009
2011
Median
2009
2010
Long Term Debt / Capital
0
0
0
0
0
0
0
0
0
Long Term Debt / Equity
0

15. 0
0
0
0
0
0
0
0
Total Debt / Total Capital
0
0
0
0
0
0
0
0
0
Net Debt / Equity
0
0
0
0
0
0
0
0
0
Financial Leverage Ratio
0
0
0
0

16. 0
0
0
0
0
Total Debt / Common Equity
0
0
0
0
0
0
0
0
0
Total Capital
0
0
0
0
0
0
0
0
0
Liquidity
Median
2010
2011
Median
2009

17. 2011
Median
2009
2010
Current Ratio
0
0
0
0
0
0
0
0
0
Quick Ratio
0
0
0
0
0
0
0
0
0
Working Capital
Median
2010
2011
Median
2009
2011

18. Median
2009
2010
Net Working Capital
0
0
0
0
0
0
0
0
0
Days Receivable (DSO)
0
0
0
0
0
0
0
0
0
Management Effectiveness
Median
2010
2011
Median
2009
2011
Median

19. 2009
2010
Asset Turnover
0
0
0
0
0
0
0
0
0
Receivable Turnover
0
0
0
0
0
0
0
0
0
Plant & Equipment Turnover
0
0
0
0
0
0
0
0
0

20. Sales / Net Working Capital (times)
0
0
0
0
0
0
0
0
0
Sales / Cash
0
0
0
0
0
0
0
0
0
Sales / Inventory
0
0
0
0
0
0
0
0
0
Sales / Working Capital
0
0

21. 0
0
0
0
0
0
0
Sales / Fixed Assets
0
0
0
0
0
0
0
0
0
Bank & Insurance Ratios
Median
2010
2011
Median
2009
2011
Median
2009
2010
Total Equity / Total Assets (Banks)
0
0
0

22. 0
0
0
0
0
0
Long Term Debt / Equity
0
0
0
0
0
0
0
0
0
Net Profit Margin (%)
0
0
0
0
0
0
0
0
0