Internet AssignmentChapter 11
As you know, a companys return on investment (or ROI) is the product of its margin andturnover. Financial analysts often compute and analyze a companys ROI by obtaining therequired data from its annual report. Unfortunately, the analyst is usually unable to determine theprecise amounts of the companys operating and non-operating assets. Although this obstacle is alimitation, the information is still useful to some extent.
Search for an annual report on Form 10-K of each of the two companies listed below. If you justdo a search on 10K Google and 10K Microsoft, you should find several sources for the 10Kreport for each.
(You can substitute Microsoft or Apple, if you have a particular interest.)
Using data from the two most recent annual reports of these two companies, compute the margin,turnover, and ROI for each company for the two most recent fiscal years. After reviewing theratios, briefly discuss each companys performance, and then compare and contrast theperformances of the two companies.
Additional Sources of Information
If you have difficulty finding the 10-K reports:
Look up 10-K (or other) financial reports: https://q10k.com/
You can also go to: https://last10k.comKey in Google or Microsoft (Google will display as Google Alphabet)
Click on the most recent 10-K report listed on the left. Print if you want to. You will find thefinancial statements about mid-way through the report.
For additional help with the calculations, go to https://bizfluent.com/how-4421050-calculateoperating-profit-margin.html