Real world: Apple vs. Google vs. Microsoft

- Okay, let's use our new found skills … when it comes to the DuPont Framework and ratio analysis … to see what we can learn about three companies … with which we are all familiar: … Microsoft, Google, and Apple. … Now, here's what I want you to do first: … Which of these three companies do you think … had the highest current ratio last year? … Think about that for a minute. … And here is the insight: anyone can guess, … but given the data, you know how to compute the answer. … No guessing is involved. … And the answer: Google by a long shot. … As you can see here, Google reported a current ratio- … That's current assets divided by current liabilities- … of 5.1, compared to 2.48 from Microsoft, and 1.28 for Apple. … Now the next question would be to drill down … and find out why their current ratio is so high. … We would do that by analyzing the individual current asset … and current liability accounts. … So, which of these three companies do you think … had the largest increase in their return on sales? …