Compare financial benchmarks

1. Revenue Growth

• Apple Inc. (AAPL):
  • 2023 Revenue: $380 billion (growth of 6% year-over-year)
  • Key Insight: Apple’s revenue growth is driven by consistent demand for its hardware products (iPhones, Macs) and increasing services revenue (App Store, iCloud, Apple Music).
• Microsoft Corp. (MSFT):
  • 2023 Revenue: $210 billion (growth of 18% year-over-year)
  • Key Insight: Microsoft’s strong growth is attributed to its cloud services (Azure), which continues to see double-digit growth, along with its software and productivity tools like Office 365.
• Alphabet Inc. (GOOGL):
  • 2023 Revenue: $285 billion (growth of 10% year-over-year)
  • Key Insight: Alphabet’s growth is driven by its advertising business, particularly Google Ads, along with expansion in cloud services through Google Cloud.

Conclusion:

• Microsoft demonstrated the highest revenue growth, benefiting significantly from its cloud services expansion.
• Alphabet showed solid growth, but at a slower rate compared to Microsoft.
• Apple continues to show steady growth, driven by both hardware and services, but lags behind Microsoft and Alphabet in terms of percentage growth.

2. Profitability Ratios

• Apple Inc. (AAPL):
  • Gross Profit Margin: 42%
  • Operating Profit Margin: 30%
  • Net Profit Margin: 25%
  • Key Insight: Apple’s high profitability is driven by its premium product pricing and strong brand loyalty.
• Microsoft Corp. (MSFT):
  • Gross Profit Margin: 69%
  • Operating Profit Margin: 41%
  • Net Profit Margin: 35%
  • Key Insight: Microsoft’s profitability is enhanced by its high-margin cloud and software products.
• Alphabet Inc. (GOOGL):
  • Gross Profit Margin: 54%
  • Operating Profit Margin: 26%
  • Net Profit Margin: 22%
  • Key Insight: Alphabet maintains strong profitability, though its operating and net profit margins are lower than Microsoft’s.

Conclusion:

• Microsoft has the highest profitability across all metrics, benefiting from its software and cloud businesses.
• Apple also has strong profitability, particularly with its premium product pricing and services growth.
• Alphabet lags behind Microsoft and Apple in terms of profitability, mainly due to the lower margins in its advertising and cloud services.

3. Liquidity Ratios

• Apple Inc. (AAPL):
  • Current Ratio: 1.1
  • Quick Ratio: 0.9
  • Key Insight: Apple maintains a solid liquidity position, but its reliance on inventory (hardware) impacts its quick ratio.
• Microsoft Corp. (MSFT):
  • Current Ratio: 2.5
  • Quick Ratio: 2.3
  • Key Insight: Microsoft has a strong liquidity position with both its current and quick ratios well above the industry average, benefiting from its large cash reserves.
• Alphabet Inc. (GOOGL):
  • Current Ratio: 3.0
  • Quick Ratio: 2.8
  • Key Insight: Alphabet also has a strong liquidity position, reflecting its ample cash reserves and low dependency on inventory.

Conclusion:

• Microsoft and Alphabet both maintain very strong liquidity positions, with high current and quick ratios indicating their ability to cover short-term obligations.
• Apple, while still healthy, has slightly lower liquidity ratios due to its higher reliance on inventory and tangible assets.

4. Efficiency Ratios

• Apple Inc. (AAPL):
  • Asset Turnover: 0.85
  • Inventory Turnover: 45 times per year
  • Key Insight: Apple’s asset turnover is relatively low compared to its peers, but its inventory turnover is high, reflecting efficient inventory management.
• Microsoft Corp. (MSFT):
  • Asset Turnover: 0.55
  • Inventory Turnover: 10 times per year
  • Key Insight: Microsoft has a lower asset turnover, which is typical for software-heavy companies with fewer physical assets. However, it is efficient in managing its intangible assets, such as intellectual property and software.
• Alphabet Inc. (GOOGL):
  • Asset Turnover: 0.60
  • Inventory Turnover: 20 times per year
  • Key Insight: Alphabet’s asset turnover is slightly higher than Microsoft’s but lower than Apple’s, reflecting its reliance on intangible assets, similar to Microsoft.

Conclusion:

• Apple has the highest inventory turnover, indicating better efficiency in managing its physical products.
• Microsoft and Alphabet show lower asset turnover, which is typical for software-based companies, but their reliance on intangible assets allows them to maintain high profitability.

5. Conclusion and Key Insights

• Revenue Growth: Microsoft leads in terms of growth, primarily due to its successful cloud and software offerings.
• Profitability: Microsoft also leads in profitability metrics, driven by its software and cloud businesses.
• Liquidity: Microsoft and Alphabet maintain the strongest liquidity positions, supported by large cash reserves.
• Efficiency: Apple excels in inventory turnover, while Microsoft and Alphabet perform better in asset management due to their focus on intangible assets.