Analyze and compare Alphabet (Google) and Microsoft
Alphabet Inc. (GOOG) and Microsoft Corporation (MSFT) design and distribute consumer and enterprise software, including overlaps in search, business productivity, and mobile operating systems. Alphabet’s primary source of revenue is from advertising, while Microsoft’s is from software subscription and support fees. The following year-end data (in millions) were taken from recent
a. Compute the
b. Which company has the larger working capital at the end of Year 2?
c. Is working capital a good measure of relative liquidity in comparing the two companies? Explain.
d. Compute the
e. Which company has the larger relative liquidity based on the current ratio?
f. Based on your analysis, comment on the short-term debt-paying ability of these two companies.
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