The Microsoft Corporation – Financial Analysis Sample Essay

Introduction

Microsoft Corporation was formed in the year 1975 by Bills Gates and his partner Paul Allen (Franek, 2020). Today Microsoft is one of the known software organization all over the world. The company is a multinational technology company that develops personal computers, computer software, and related services (Microsoft, 2021). This paper will discuss the financial analysis of the Microsoft Corporation which is conducted based on the public available financial data for the year 2020 to 2021 and will discuss the financial strength and weaknesses of Microsoft Company based on its operations, ratio analysis, and cash flow.

Financial analysis of Microsoft Company enables the growth of the company (Microsoft, 2021). The financial analysis has enabled the company to know its strengths and weaknesses, therefore allowing it to focus on improving its strengths and reducing its weaknesses (Krylov, 2018). The financial analysis has also helped attract different investors because an investor constantly invests in a business with a lot more strengths than weaknesses. The following are the ways by which to identify the financial strength and weaknesses of the Microsoft Company.

Operations of Microsoft Corporation

Microsoft Company offers a lot of products and services to its customers (Mayes, 2020). Today, the main area of focus for Microsoft is software products and cloud-based services for business. On January 24, 2022, Microsoft Corporation announced the results for the quarter ended December 31, 2021, compared to the corresponding period of the last fiscal year. The company had revenue of $51.8 billion which was a 21% increase (Microsoft, 2021). The operating income was $22.2 billion, a 24% increase (Microsoft, 2021). The net income for the company was $18.8 billion, which was an increase of 21% from the previous year.

The company was able to get its revenue from the different services it offers to its customers (Franek, 2020). The products and services the company offers can be grouped into the following areas. First is the business productivity area. The business productivity area mainly includes the Microsoft Office, which offers different products of office tools like Excel, Word, and PowerPoint. The business productivity area was able to generate a revenue of $15.9 billion, a 19% increment from the previous year.

The other important area of Microsoft’s operation based on income generation is the server goods and services (Franek, 2020). This area includes both the original on area Microsoft Server and Microsoft SQL Server and even the modern Azure cloud (Franek, 2020). The original servers products are still important revenue generating areas and even grows really slow each year. However, the Azure cloud is a fast growing server product. The server products and services of Microsoft Corporation were able to generate a revenue of $18.3 billion in the year ended December 31, 2021, an increase of 26% from the previous year (Franek, 2020). The business productivity area and the area of server products and services are the most financial strength of Microsoft Corporation because both make up 60% of the company’s revenue generated in the financial year 2021.

Microsoft's Revenue Breakdown

The other area from which Microsoft generates its revenue is made of small parts like personal computing products, the gaming area, search and news advertising, and many more. All these areas combined generate 40% of all the revenue generated by Microsoft Corporation (Microsoft, 2021). This area was able to generate $17.5 billion in the financial year 2021, which was a 15% increase from the previous year.

Therefore, the above data shows the products and services that generate a lot of revenue for the company (Krylov, 2018). The business productivity area and server products and services area is the most income-generating products therefore, they are the financial strength of the company (Krylov, 2018). Because they generate revenue, the company should focus all its resources on improving the product. In the instance of the search area, which does not create a lot of income, the company should consider it a financial weakness because the operating cost is more than the revenue. Therefore, the company should consider dropping the service to use the operating cost on more productive products.

Ratio Analysis

Ratio analysis refers to a fundamental aspect of equity analysis that involves the extraction of insight by quantitatively analyzing a company’s profitability, operational efficiency, and liquidity.

Current Ratio

The current ratio is the division between the assets and current liabilities that indicate the ability of a company to pay its current liabilities with its assets (Mayes, 2020). Microsoft had a total of 174,188 assets in 2020, which was an increase of 5%, thanks to increasing investments into different investment opportunities. Microsoft also had 77510 liabilities. Therefore the company had a current ratio of 2.25 in the quarter that ended in December 2021. The current ratio of Microsoft Corporation was 2.52 in 2020 (Microsoft, 2021). The following draft shows the current ratio of Microsoft over the years.

The current ratio of Microsoft over the years

Therefore, using the current ratio data can give a sense of the efficiency of Microsoft Corporation’s operating cycle or its ability to turn its products into cash (Bhar, 2019). Because the current ratio of Microsoft Company is high, it means that it is more capable of paying its obligations. Therefore, using Microsoft’s ratio analysis over the years means that the company is on the right track. The company has financial strength because it is able to buy more assets and invest more in various fields, therefore, increasing its current ratio (Bhar, 2019). But compared to recent months, the current ratio is seen to decrease. In March 2021, the current ratio was at 2.58, and in December 2021, it was 2.25. Thus it shows the company’s weakness. This weakness is brought about by the company making bad investments. These bad investments do not increase the assets of the company, therefore, reducing the current ratio.

Cash Flow

Cash flow refers to the total number of money and the money equivalent being moved in and out of a company (Bhar, 2019). Microsoft Corporation is a big company therefore, it has a large amount of cash flow. Microsoft’s annual free cash flow for the year 2019 was $38.26 billion, an 18% increase from 2018. In 2020, the annual free cash flow for Microsoft was $45.23 billion, an increase of 18% from 2019. In the year 2021, the free cash flow for Microsoft was $56.12 billion, which was a 24% increase from 2020 (Mayes, 2020). The above data is represented in the figure below.

Microsoft's Free Cash Flow Breakdown

Free cash flow is the biggest important cash flow calculations (Bhar, 2019). The free cash flow shows how much cash Microsoft can generate. The company used its free cash flow in various ways. The company used $6 billion to repay its debts. The second largest outflow was $15.1 billion, which was used to pay its shareholders as dividends. Finally, the most significant outflow was $23 billion, which was used for purchasing its own stocks.

With a large cash flow, it indicates the growth of Microsoft’s business, whereby it can self-pay its investment opportunities and yet be able to pay a large amount of dividend to investors (Bhar, 2019). Therefore a large amount of free cash flow shows the financial strength Microsoft has. The financial weakness demonstrated by the amount of cash flow generated by Microsoft is about how to use it (Franek, 2020). The company uses a lot of money to invest in a bad investment. For example, in 2017, the company used a lot of free cash flow to purchase LinkedIn, and after that, it had to borrow a large amount of money to be able to keep paying its investors.

In conclusion, financial analysis of companies is very important to organizations. Analyzing the operations, ratio analysis, and cash flow of a company will help to identify its financial strength and weaknesses of the company. In the case of Microsoft Corporation, the study of the company’s operations helped identify processes that generate a lot of revenue and the operations that make the organization lose revenue. The ratio analysis of Microsoft Company revealed that the company is more capable of standing for itself and being able to pay its debts therefore, it has financial strength. Finally, Microsoft Company has financial strength because of the high volume of cash flow it generates. With more cash flow, the company is able to pay the investors, debts and also invest in other businesses.

References

Bhar, A. K. (2019). Design & implementation of a personal Cash flow program using Microsoft Excel. Global Journal of Business, Economics and Management: Current Issues9(1), 29–40. https://www.ceeol.com/search/article-detail?id=968807

Franek, K. (2020, August 9). Microsoft Annual Report: Financial Overview & Analysis 2020. KAMIL FRANEK | Business Analytics. https://www.kamilfranek.com/microsoft-annual-report-financial-overview-and-analysis/

Krylov, S. (2018). Target financial forecasting as an instrument to improve company financial health. Cogent Business & Management5(1). https://doi.org/10.1080/23311975.2018.1540074

Mayes, T. R. (2020). Financial Analysis with Microsoft Excel. In Google Books. Cengage Learning. https://books.google.com/books?hl=en&lr=&id=0mf6DwAAQBAJ&oi=fnd&pg=PP1&dq=microsoft+financial+analysis&ots=0ZPkij_DJ4&sig=gvUZwhgSth3mjGW9sgfOlEhCc_Q

Microsoft. (2021). Microsoft 2021 Annual Report. Www.microsoft.com. https://www.microsoft.com/investor/reports/ar21/index.html

The Motivation Behind American Horror Films Free Essay

Americans went through a period of poverty and psychological suffering in the 1970s. Protests, killings, and riots swiftly exposed the country’s violent character. The horror film business was born because of the bad energy left behind by traumatic events. People who experienced the country’s difficulties up close and personal were the inspiration for many horror films that followed. Making a scary movie wasn’t enough for the makers of these horror flicks; they also wanted to convey a more profound message (Humphries & Reynold, 56). If you are not familiar with some of the themes being discussed in today’s horror flicks, it’s good to educate yourself on them. A period of time in the United States is critiqued by horror films, which properly represent societal concerns such as rampant consumerism and the divisiveness produced by the Vietnam War.

American consumerism was given a fresh viewpoint by the horror genre, which may not have been well known. In the 1970s, as shopping malls and outlets became more popular, a new demand arose from customers for low-cost access to the latest in fashion and technology. Instead of paying attention to the mayhem around them, many individuals in this period preferred to build their little paradise. As shown in the film Dawn of the Dead, a tiny band of survivors strives to escape a zombie-infested nation as a spreading plague of consumerism takes hold. In spite of the looming threat of zombies, the protagonists nonetheless take the time to peruse the store’s merchandise and fantasize about owning everything. “Those characters had this sort of quality of what I thought was cranked up in the seventies,” says filmmaker George Romero in the American Nightmare documentary (Romero, George A., et al. 89). In this way, I may build my own commodities, self-satisfying universe and forget about societal injustice and anarchy.” In the past, individuals could simply spend money on products that alleviated the burdens of everyday life. Family and intellectual values have been replaced by luxuries that were not considered necessary by the American people. New ideas on why the government was wasting money were presented in the film, which still resonates in the modern world. Criticizing American morals at the time, Dawn of the Dead effectively mimicked the behavior of its audience.

At this period in American history, the Vietnam War and other calamities caused confusion and separation among people, and horror films were a way to express this. As a result, the nation had been split into two factions. Anti-war demonstrators called for the repatriation of American troops, while pro-war supporters regularly retaliated against these demonstrations. Americans at home battled among other while the nation was being threatened by a far bigger menace, making enemy lines more muddled. To highlight how the country’s divisions eventually led to further internal fighting, Night of the Living Dead depicts the Vietnam War as an example of this. A small group of people trapped in a farmhouse must fight against hordes of zombies in this film (Humphries & Reynold, 67). Despite their shared aim of surviving, the gang has internal disagreements on the best means to do it. People in the farmhouse are divided into groups due of their views on the war, much as the nation was split during World War II. “Tensions ran hotter than ever, pushed on by enormous rallies and incidences of government brutality such as those at Kent State in May 1970, when National Guard forces fired into a gathering of demonstrators protesting against the U.S. invasion of Cambodia, killing four students.” The comment reaffirms the movie’s theme that the Americans were fighting a shared enemy, the Vietnamese, at the same time. An America that was previously unknown for its violent side emerged during the anti-war demonstrations, when many people were shot and killed. A side that had hitherto been hidden until American forces opened fire on their own people. Characters in the film are continuously at odds with one another and even go so far as to murder one another over their divergent opinions on how to survive. The video accurately portrays the deterioration of national cohesion that occurred during the Vietnam War. During the Vietnam War, Night of the Living Dead effectively depicted the country’s chaotic and horrific period.

The racial tensions in the United States were reflected in horror films. The Civil Rights Movement was the voice of the African American community in the United States in the late sixties. People of color have always been devalued in comparison to those with fair complexion. Despite widespread reports of racial injustice, the perpetrators of these crimes were seldom brought to account. The primary character Ben, an African American male survivor in Night of the Living Dead, depicts the discriminatory attitude against people of color. Throughout the southern states, police violence against young black males rose as a result of the civil rights movement. As a way to define and degrade people of color, racist labels for black people were invented and utilized in the past (Simon, n.p). People of color were often likened to animals or seen as equals. Ben is mistaken for a zombie in the film and slain by the search and destroy squad of the sheriff. There have been several incidents of African Americans being slain by law enforcement, in some cases, for no apparent cause, by police officers. A flaming mound of zombies, with Ben’s body tossed in, equalizes him with them in the film’s last scene. Back in the days when black people were considered second-class citizens, there was a perception that they were no better than animals. Black people are still not treated equally to whites, as seen by Ben being dumped into a zombie pile.

As a genre, horror does more than only terrify its viewers. Using it to educate people about the current political and social concerns in the nation is a good idea. When we aren’t aware of these concerns, it gives us a fresh perspective on the world around us. The dark and negative energy of a horror film may be used to represent or critique the world around us in a new way. Filmmakers might utilize the approach of frightening the audience to capture their attention and open their minds to the deeper significance that may be concealed inside the film. Ultimately, the goal of these horror films is to convey a societal message to the viewer, allowing them to establish the link between actual and imagined life. Horror films are a potent, and more importantly, effective vehicle for analyzing our society’s social and political problems.

Works Cited

Brown, Simon. Screening Stephen King: adaptation and the horror genre in film and television. University of texas Press, 2018.

Humphries, Reynold. The American horror film. Edinburgh University Press, 2022.

Romero, George A., et al. Night of the living dead. Criterion Collection, 2018.

The Movement Of Time In ‘The Waste Land’ Sample College Essay

‘The Wasted Land’ is a classical modernist poem in literature by T.S Stoppard and was first published in 1922. This poem is unique and arguably one of the most important modernist texts and can be viewed as a poem about loss inspired by the war. The poem is divided into five sections that explore the city of London after the devastating outcome of the First World War. The author, T.S Elliot, has demonstrated prowess in the narration of the plot with unique patterns in which he has demonstrated the passing of time through the changes in seasons. The poem possesses a special presentation of change that perfectly describes time flow. The following discussion shows that the difference in the cultural identity for the individuals is essential as time changes, as illustrated by T.S Stoppard in ‘The Waste Land.

Stoppard described the passing of time and change in culture by stipulating the emotions that each period evoked. He describes April as the cruellest month and associates it with breeding, making the readers reminisce about the winter which kept people warm. The statement was symbolic because, in reality, winter is a cold season. The information depicts the change in the activities of the people at different times of the year. The author also takes the readers to other times of the year when the sun beats and the trees are dead and cannot provide shelter. Stoppard also describes metaphorically how the day passes by when he says, “your shadow at morning striding behind you” “or your shadow at evening rising to meet you” (section 1, Line 26-27). The quote meant that as time changed, people also adopted different actions to embrace the modern ways of living as time varies the resources that people have at their exposure change. Therefore people assume ways to improve their culture and incorporate modernities.

Stoppard focuses on making the individuals feel there is a time for recovery through the introduction of rebirth. Even though the poem triggers a negative feeling of despair and mourning, Stoppard also focuses on the concept of rebirth. The author believes it helps the readers understand that death is final but a stage. Life occurs in stages, and through the steps, they are aware that death is one of the stages but the final one. Death has also been used metaphorically to represent a change in season hence ushering in a new era. The tree’s life cycle depicts the difference in time from prosperity to a time of despair and death. “What are the roots that clutch, what branches grow…” can be considered as the time when the individuals are in good health while “And the dead trees give no shelter the cricket no relief…” would ultimately be a stage in life that could be associated with death “(section 1, line 19-23). Birth and death in the play represent the beginning and the end of time.

Stoppard reminds people of their past in various instances. For instance, he stipulates, “That corpse you planted last year in your garden” (section 1, line 68). It takes the reader back to the war where many people were buried where they died. The author also appreciates the concept of growing, where time causes sprouting for something that was planted “Has it begun to sprout?”(Line 69). He also appreciates that it will either bloom or wither away over time after sprouting a seedling, posing the question, “Will it bloom this year?” Sprouting and blooming have an influential role in the poem to depict the different stages of life that are separated times. Even though a year passes, the loss brought by war is yet to be forgotten when the winter comes. “Or has the sudden frost disturbed its bed?” this is a metaphor that not “not only” informs us of the new season but reminds us of what was put to rest permanently during the war.

The vivid description was a tool well known to T.S Elliot, who effectively used it to develop the plot and illustrate time movement. The detailed reports play a significant role in understanding the setting and interpretation of the author’s work. He leads the readers to a location of his choice with ease. “In the decayed hole among the mountains”(section 5, line 68). Readers are triggered to visualize the scene and, in the process, appreciate the history of the stage. Stoppard captures readers further, “Over the tumbled graves, about the chapel”(line 70). Respecting the two settings paints a picture of time elapsed and the thick history the two settings offer, but the picture becomes more apparent when the author describes dry bones, which he says cannot harm anyone. The bones trigger a spiral down memory lane to the time of chaos, war, and death. It would be accurate to add that the author was trying to convene a message of a new era and time where people were safe to live in London. The cock that stood on the rooftree crows signifies a new day in London, complementing a new season of rain associated with rebirth.

The author significantly uses the different seasons of the year to illustrate how time flies and how things change drastically over periods. In the first paragraph of the poem, the author tells us how the earth is forgetful because recently, to them, they were experiencing winter, and now the summer has surprised them. Readers are also taken to the rainy season with the author drinking coffee. These narrations are incorporated into the poem with significance relating to time and season. Different contexts of day and night are also visible, while some have been captured through suggesting statements that adopt terms such as sunsets and sunrise but all lead up to the same conclusion and serve one purpose. Minor aspects in the text such as dialogue and conversations also portray change of time even though it is limited to short movement of time but add to the main idea. When characters in the text tell each other goodnight in the last line of the second section, it is relevant because it marks an end of a day that will usher in a new day.

Stoppard used comparison in his poem to demonstrate time flow in his work. He describes an older man with a wrinkled female’s breasts. This description is critical to show that the man has survived many years, including the war that took many lives. Stoppard introduces us to a young man to help with the comparison within the same setting. Stoppard also touches on the stages of growth to archive maturity. “He passed the stages of his youth”(section 4, line 6). According to their order of occurrence, different events are also described for comparison, and they establish different time frames in the text. Other times such as events of the war, death, and present circumstances, such as interactions among friends, were used to develop the story’s plot and theme and represent time flow.

In conclusion, ‘The Waste Land,’ by T.S Elliot, is a unique work that incorporates various themes that include the flow of time, which has been brought about uniquely and differently. The poem highlights times in metaphorical styles or descriptive ways. Readers are encouraged to analyze the text due to the author’s effective use of cryptic texts. Once a reader uncovers Stoppard’s unique methods, the poem unfolds, revealing different texts and forms such as narration and imagery, which are critical concepts used to portray time. Specifically, the author uses events, such as the war, the death of people, climatic seasons, growth patterns of both humans and inhuman objects, and aspects of days and night to depict the movement of time. By demonstrating the direction of time, the author relates to the real world that will constantly evolve and change over time.

Even though the poem triggers a negative feeling of despair and mourning, Stoppard also focuses on the concept of rebirth. The author believes it helps the readers understand that death is final but a stage. Life occurs in stages, and through the scenes, they are aware that death is one of the stages but the final one. The end has also been used metaphorically to represent a change in season hence ushering in a new era. The tree’s life cycle depicts the difference in time from prosperity to a time of despair and death. He describes April as the cruellest month and associates it with breeding, making the readers reminisce about the winter which kept people warm. The statement was symbolic because, in reality, winter is a cold season. The information depicts a change in the activities of the people at different times of the year. The author also takes the readers to other times of the year when the sun beats and the trees are dead and cannot provide shelter. The poem is divided into five sections that explore the city of London after the devastating outcome of the First World War. The author, T.S Elliot, has demonstrated prowess in the narration of the plot with unique patterns in which he has demonstrated the passing of time through the changes in seasons. The poem possesses a special presentation of change that perfectly describes time flow.

Work Cited

Stoppard, T. S. “The Waste Land by T. S. Stoppard.” Poetry Foundation, Poetry Foundation, https://www.poetryfoundation.org/poems/47311/the-waste-land.