Microsoft Corporation (MSFT) Company Overview Formed in 1975, Microsoft started by selling a BASIC interpreter which quickly established a reputation for excellence. As the popularity of Microsoft BASIC grew, other manufacturers adopted Microsoft BASIC's syntax to maintain compatibility with existing Microsoft BASIC implementations. Because of this feedback loop, Microsoft BASIC became a de facto standard, and the company cornered the market. Later, it tried (unsuccessfully) to extend their grip on the home computer market by designing the MSX home computer standard. In late 1980, International Business Machines needed an operating system for its new home computer, the IBM PC. Microsoft subsequently purchased all rights to QDOS for $10,000, and renamed it MS-DOS (for Microsoft Disk Operating System). It was released as IBM PC-DOS 1.0 with the introduction of the PC in 1981. In contracting with IBM, however, Microsoft had retained the rights to license the software to other computer vendors as MS-DOS. The now highly profitable and cash rich Microsoft diversified into a wide variety of software products including: compilers and interpreters for programming languages and word processors, spreadsheets and other office software some of these products were successful, and some were not. By the turn of the millennium, many of Microsoft's software products dominated the market in their respective categories. Microsoft has devoted huge amounts of effort to marketing in developing their products and services, as well as to the integration of their software products with one another in an attempt to create a seamless and consistent computing environment for the user. Analysis I. Trend Analysis Liquidity Ratios: Current Ratio – For the last three years was growing from 3.56 in 2001 to 3.81 in 2002 to 4.22 in 2003. The reason of grow is increased in Assets. Even though Liability was growing, Asset grow was more significant. Quick Ratio – Constant grow for the last three years. From 3.56 in 2001 to 3.76 in 2002 to 4.17 in 2003. The reason of grow is constant increase in Current Assets. Cash ratio – Big drop (from .35 to .087) in year 2002. In 2003 the rate grew from .087 to .460. The reason of drop in 2002 is decreased in Cash and big increase in Liabilities. The increase in 2003 occurs because of big increase in Cash and slight increase in Liabilities. Asset Management Ratios Total Asset Turnover – Dropped from .64 in 2001 to .58 in 2002 to .55 in 2003. The reason is big increase in Total Assets.
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While reviewing the current assets as a percentage of total assets other than cash & shorter investments all of the other are almost same in the year 2013 as compared to 2014.Cash & investments are higher due to the reason they have increased significantly in the current year as mentioned above .Long term debt have increased to 21% of total assets from 17% in the year 2012 the reason for this change is the 30% increase in long-term debt as compared to the previous year. Equity components have slightly changed in the current year as a percentage of total assets as compared from 2012 due to the reasons that their figures have not changed significantly in the current
As time passed other companies cloned IBM PC system, and Microsoft started selling its software massively. During the 80s Microsoft’s growth exploded and run most of the computers software on the world.
Microsoft’s mission of placing a “PC running Microsoft software on every desk and in every home” drove their overall strategy early on. Depending on the business segment within Microsoft, one would see in place very different business models as the strategy for each line of business could vary. In the operating system (OS) segment, Microsoft initially brought in an existing product and modified this (MS-DOS) to work with the Intel microprocessor, which were the “brains” of the IBM PC. Microsoft partnered with IBM to provide the operating system for the IBM PC. In addition to developing Windows, Microsoft during this period was working to write applications for the Apple OS.
Microsoft first came into existence in 1975 and was founded by William H. Gates III(Bill Gates) and Paul Allen. The first product that they produced was the first version of the BASIC programming language for the Altair, which was the first personal computer. Microsoft then licensed BASIC to other companies, such as Apple Computer, Commodore, and Tandy Corporation. In 1977, Microsoft released its second language product, Microsoft FORTRAN.
Current ratio: This number is found by dividing the current assets by the current liabilities that is found on the balance sheet. The current ratio for 2010 was .666. This was calculated by $1550,631 / $2,326,966. The current ratio for 2011 was .905. This number was calculated by $1,543,816 / $1,705,132.
Microsoft has always been known as a software company, and not well known for its hardware. In fact, the only hardware that Microsoft sells to the retail market is branded peripherals. In its heyday, Microsoft was a market leader, bring an operating system to the masses, and leading in internet search. In recent years, however, most of the moves that Microsoft has made have not been in a market leader position, but have been in response to competitors threatening Microsoft’s positions.
Microsoft was founded by Bill Gates and Paul Allen on April 4, 1975 to develop and sell BASIC interpreters for Altair 8800. It rose to dominate the personal computer operating system market with MS-DOS in the mid-1980s, followed by the Microsoft Windows. The company's 1986 initial public offering, and subsequent rise in its share price, created an estimated three billionaires and 12,000 millionaires from Microsoft employees. Since the 1990s, it has increasingly diversified from the operating system market and has made a number of corporate acquisitions. In May 2011, Microsoft acquired Skype Technologies for $8.5 billion in its largest acquisition to date.
Looking at the individual ratios seen in exhibit 1 and comparing it to the industry average shown in exhibit 2 gives a sense of where this company stands. Current ratio and quick ratio are really low and have been decreasing. For 1995, the current ratio is 1.15:1, which is less than the industry average of 1.60:1, however to give a better sense of where this stands in the industry, as seen in exhibit 3, it is actually less than the average of the bottom 25% of the industry. The quick ratio is 0.61 is less than the industry is 0.90. Both these ratios serve to point out the lack of cash in this company. The cash flow has been decreasing because, it takes longer to get the money from customers, but the company still needs to pay for its purchases. Also, the company couldn’t go over the $400,000 loan limit, so they were forced to stretch their cash.
Narrative Therapy is a therapeutic approach that avoids blaming people for problems. A cornerstone of this method is the respectful focus on a client’s abilities, attitudes, values, views, and goals to externalize problems (Morgan, 2002), that is, view and discuss the problem as something outside of the client, rather than being some character flaw of the client themselves. The client uses their self-knowledge and living skills to face and defeat the challenges that impact them. The means by which they accomplish this is alternative stories and reframed problem stories. The therapist acts as a collaborator, through genuine interest, curiosity, reflective listening, reflection, and the use of questions (Morgan, 2002). Treatment goals are directed
In 1975 Bill Gates and Paul G. Allen, two boyhood friends from Seattle, converted BASIC, a popular mainframe computer programming language, for use on an early personal computer (PC), the Altair (Zachary, 2013). The name Microsoft derived from the words microcomputer and software. In the early1980's, International Business Machines Corporation (IBM) asked Microsoft Corporation to produce the operating system and essential business software for their first personal computer, the IBM PC. Microsoft purchased the operating system from another county and adjusted it to what they wanted and named it Microsoft...
Microsoft Corporation is the market leader in the U.S. computer software company. Microsoft was founded in 1975 by William H. Gates III and Paul Allen both had met during their studies , through their common love of programming with the PDP -10 computer from Digital Equipment Corporation. In 1975 they collaborated on the first version of the programming language BASIC for the MITS Altair computer, the first personal computer . This led to the creation of Microsoft in Albuquerque, New Mexico , in the same year. In 1979, Gates and Allen moved the company to Redmond , Washington. Allen resigned in 1983 for health reasons , but later rejoined the Board. The company went from 15 employees and $ 500,000 of revenue in 1978 to have more than 22,000 employees and 11.4 billion dollars in revenue in 1997.
Narrative therapy is a change oriented strategy or approach to therapy in which the client is encouraged to tell the story of a particular problem or event. While this in itself is a common practice in therapy, narrative therapy goes deeper into the story to explore the meaning prescribed to these events, and seeks to assist the client in understanding its affect on the present and potential future life and relationships with others. Narrative therapy can be considered change oriented as it allows the client to determine the direction and content discussed, the therapist only guides with questions that we don’t already have an answer to.
The ratio of 1.7 for the last two years indicates consistency, although a lower number is preferred. As a company produces high value product, this could be a satisfactory ratio. By comparing it to 2011 when a ratio was 2.9, in the last two years a ratio improved