Microsoft Corporation Stock Buy Recommendation Reiterated (MSFT)
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- MSFT's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MSFT has a quick ratio of 2.44, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for MICROSOFT CORP is currently very high, coming in at 78.40%. Regardless of MSFT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MSFT's net profit margin of 27.89% compares favorably to the industry average.
- MICROSOFT CORP's earnings per share declined by 22.1% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, MICROSOFT CORP reported lower earnings of $2.00 versus $2.69 in the prior year. This year, the market expects an improvement in earnings ($2.90 versus $2.00).
- MSFT, with its decline in revenue, slightly underperformed the industry average of 3.0%. Since the same quarter one year prior, revenues slightly dropped by 7.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
--Written by a member of TheStreet Ratings Staff. HOLIDAY SPECIAL: Let Jim Cramer show you every trade he is making in his $2.5 Million portfolio. Join now for 14-days FREE. Sign up today to get e-mail alerts before every trade
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