NEW YORK (TheStreet) -- Shares of Microsoft Corp. (MSFT - Get Report) are up 0.44% to $41.86 as CEO Satya Nadella, five months into the job, today released his definition of Microsoft's corporate mission and hinted that an organizational shake-up will happen, the Wall Street Journal reports.
In an approximate 3,000-word email to company employees, Nadella said Microsoft needed to "hone in on our unique strategy," which he suggested would differ from the "devices and services" mantra developed by his predecessor, Steve Ballmer, the Journal noted.
He said Microsoft at its core "is the productivity and platform company for the mobile-first and cloud-first world."
- MSFT's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.01, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Software industry and the overall market, MICROSOFT CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- MICROSOFT CORP's earnings per share declined by 5.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MICROSOFT CORP increased its bottom line by earning $2.60 versus $2.00 in the prior year. This year, the market expects an improvement in earnings ($2.71 versus $2.60).
- You can view the full analysis from the report here: MSFT Ratings Report