Project Financial

6

Comparison Between Microsoft Corporation and Apple Inc

Keenya Davis

South University

Comparison Between Microsoft Corporation and Apple Inc

Apple and Microsoft both provide top-of-the-line electronics, and both have operated in the market for many years now and are world-famous, so consumers continue to purchase goods. Many considerations are taken into account to decide which company is a better economic investor. These include growth, profitability, ability to pay off long-term debt, revenue, return on equity, return on assets, and profit margin. Apple Inc devices are iPhone mobiles, Mac personal computers, , Apple Watches, AirPods wireless earbuds, an Apple TV (Al Kibaida,, & Nobanee, 2020). Microsoft apps are routers, phones as well as other mobile devices; cloud systems for remote computing environments; productivity tools; enterprise solutions;

Microsoft hit the highest level on Fortune 500, reached five points in 2019, and kicked $39 billion in earnings. Overall revenues in Microsoft's grew by 14% in the past three years to $125.8 billion. Last autumn, the tech giant secured a coveted $10 Billion Cloud Computing deal with the Pentagon to boost Microsoft's status as a global leader in the cloud. However, after rival Amazon bidder posed questions about the bids process, the offer is on hold and being reviewed. So far, by 2020, the growth of the remote operations stemming from the coronavirus pandemic has contributed to a much greater need for the Azure cloud service of the company and its Office 365 workplace software. Microsoft's shares reached nearly $189 in February, reflecting Wall Street's excitement for CEO Satya Nadella's company growth (Microsoft n.d., 2020)

In the past three years, Mighty Apple sunk 2 % to 260 billion dollars in revenue and ranking from No. 3 to No. 4. The capacity of the computer and the telephone manufacturer to make profits coated the blast. Apple has gained 55 billion dollars. The story of Apple's sales depths of despair is conveyed through 3 categories. iPhone shipments, 55% of the overall Apple sales, dropped by 14%. Increased sales of utilities such as subscriptions and streaming, 18% overall, increased by 16%. And wearable devices (Watches and AirPods ) and much non-phone equipment (Beats products, home pods, and iPods) have slipped by 41%, but are just 9% of that.

These governance principles were adopted by the Board of Directors of Apple Inc. (the "Corporation"). The rules and the articles of incorporation of the Corporation, the legislation, and charters of the Board's committees form the Corporation's governing structure. The Corporation's governance system is structured to a functional framework for principal action, efficient decision-making, and proper enforcement and performance management (((Al Kibaida & Nobanee, 2020). Microsoft Board of Directors supervises the CEO and other Senior Executives regularly in Microsoft professional and legal activities and ensuring that long-term shareholder needs are represented To perform its duties, Microsoft managers proactively focus on their roles and set expectations to guarantee that Microsoft is committed to corporate performance by upholding a high degree of commitment and ethics.

Most of Apple's primary rivals are mainly computer suppliers. Dell Technology is a technology company and one of Apple's biggest competitors in the market. Dell also attempts to redeem some of Apple's market share for portable music players with its Dell DJ, which was planned as the iPod's early rival. In recent years, Dell has taken part in various acquisitions and alliances, although it never provides smartphones. The Lenovo Company is another maker of computers competitive with Apple. This Chinese firm sells both user PCs and smartphones, and other devices. Lenovo competes in many different product categories with Apple.

The critical rivals of Microsoft Corporation (MSFT) comprise the most popular technology firms in the market. The list consists of the famous- brands, including Oracle (ORCL), IBM, Apple (AAPL), SAP, and Google; since Microsoft is a differentiated business selling a wide range of products, it faces heavy competition in several crucial technology fields.

Microsoft IT business toped the Reputation Institute's CSR RepTrak 100 at the Integrity Institute in favor of the Walt Disney Company, which overtook Google for the second spot this year. Microsoft gave over $900 million in cash and nonprofit apps worldwide last year, lowered greenhouse gas emissions 30 percent by unit sold about 2007, making it the highest ever contribution company. Apple (AAPL) finished 20th in the Annual RepTrak 100 Reputation Institute in the first quarter of 2017, assessing consumer attitudes towards big corporations worldwide (Franklin et al., 2019). Apple ranked 10th in the report over the same time last year. In 2018, Apple was a close second behind search giant Google in the Integrity Institute (GOOGL).

The financial accounts, in all material ways, for the previous three years, of the two firms, the combined financial condition of Apple Inc. from 2017 to 2020 as well as the consolidated operating performance and its investment returns for the years then ended in compliance with the accounting standards widely agreed by the U.S. The company demonstrated low solvency and a fall in its financial strength and profitability. The profitability declined dramatically over three years; however, in three-years, liquidity decreased marginally in the end.

In all material respects, Microsoft retained efficient internal regulation of financial statements based on the requirements set out in the Internal Control-Integrated Structure of the Treadway Commission Committee of Sponsoring Organizations (Microsoft n.d., 2020) Microsoft's liquidity ratios suggest that the company can satisfy all its commitments and is at low risk of debt because of the total improved capital and current rates. Its corporate partnerships tend to be sufficient, with good receivable turnover, healthy turnover ratio, and the firm's asset turnover ratio indicating its success in managing overall asset utilization for sales.

References

Al Kibaida, O., & Nobanee, H. (2020). Financial Statement Analyses of Apple. Available at SSRN 3647455.

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3647455

Franklin, M., Graybeal, P., & Cooper, D. (2019). Principles of Accounting. Rice University. https://openstax.org/books/principles-financial-accounting/pages/financial-statement-analysis

Microsoft. (n.d.). Microsoft Corporate Social Responsibility - Microsoft CSR. Retrieved May 23, 2020,

https://www.microsoft.com/en-us/corporate-responsibility