Compare and contrast the ratios for F and MSFT. What might explain the differences between them?

The ratios for F and MSFT are both important indicators of a company’s financial health. Comparing the two can provide insight into their relative strengths and weaknesses. For example, F has a higher return on equity (ROE) ratio which indicates that it is more efficient at turning assets into profits than MSFT. Additionally, F also has a better debt-to-equity (D/E) ratio which implies that it is less reliant on borrowing money to finance operations.

On the other hand, MSFT has a superior price-to-earnings (P/E) ratio indicating that investors view its stock as being undervalued compared to F. Furthermore, MSFT also has a higher current ratio suggesting that it is better able to meet short term obligations such as debts or payroll costs. Ultimately, these differences could be explained by each company’s business model and strategies as well as individual investment decisions made by shareholders or market conditions in general.