Let’s break it down based on some research I did while the market was closed yesterday:
Let’s look at profitability: with a current Operating Margin for Microsoft Corporation [MSFT] sitting at +33.96 and its Gross Margin at +65.81, this company’s Net Margin is now 31.70%. These measurements indicate that Microsoft Corporation [MSFT] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 23.74, and its Return on Invested Capital has reached 19.90%. Its Return on Equity is 42.41, and its Return on Assets is 14.39. These metrics all suggest that Microsoft Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Microsoft Corporation [MSFT] has generated a Total Debt to Total Equity ratio of 84.49. Similarly, its Total Debt to Total Capital is 42.52, while its Total Debt to Total Assets stands at 30.17. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 15.87, and its Long-Term Debt to Total Capital is 77.31.
You’re not still reading this, you’re commenting something about “TL:DR which strike” and I actually copied the above paragraphs from an outdated article. This is not real DD and while I’m sure 90% of you have stopped reading — oh who am I kidding, 99% of you have stopped reading up until this point that literally nothing I type here matters.
The only substantial point you should take away from this is you need to buy MSFT calls and pump up the price this week because while my calls are expiring in April, I have no intention whatsoever in letting theta trap me in losses until then and I really need to get out of this position to make money in other places this week and next. Okay, back to the con.
Shares of Microsoft Corporation [MSFT], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.
As you can see, it’s the perfect time to buy MSFT calls.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.