Question

Identify Key risks for Microsoft, Inc and the 2019 key ratio analysis of it.

Identify key risks of Microsoft company and key ratio analysis for the 2019 annual report

Identify Microsoft company current ratio, Quick ratio, Debt to Equity ratio, Debit ratio, Return on Assets for 2019 annual report

identify Microsoft company key Risks in two paragraphs

Answer 1

Key risks of microsoft:

Microsoft is exposed risk from foreign currency exchange rates, interest rates, credit risk, equity prices and commodity prices. A portion of these risks is hedged, but they impact financial statements of Microsoft

Foriegn currency

Certain forecasted transactions, assets and liabilities are exposed to foreign currency risk. Even they monitor foreign currency exposures daily & use of hedges where practicable to offset the risks and maximise the economic effectiveness of their foreign currency positions. Principal currencies hedged include the euro, Japanese, yen, British pound & Canadian dollar.

Equity risk : Microsoft equity consists of global, developed and emerging market securities that are subject to market price risk. They manage the securities relative to certain global and domestic indices and expect their economic risk and return to correlate with these indices.

Other risks include interest rate, commodity & value at risk