Looking at the outstanding shares of both companies, Apple has more common shares outstanding in the open market than Microsoft. We can assume that Apple increases its issuance of outstanding stock to reduce the stock price, thereby making Apple stock affordable (Miller-Nobles, Mattison, and Matsumura 669). Finally, Apple stock sells for 15,230.83 times one-year earnings, compared to Microsoft's 38.82 times. This ratio tells investors how much they are willing to pay for each dollar of a company's profit. As a result, Apple has a higher ratio, which means a higher price-to-earnings ratio, a higher return on investment (Miller-Nobles, Mattison and Matsumura 670). Overall, horizontal analysis and financial ratios are essential factors that companies use to monitor their liquidity. Therefore, in order to improve Apple's ratios and profitability, the company must implement a strategy to increase its liquidity. Business owners or managers should monitor the current ratio and reliability testing ratio because these ratios help us ensure that the business has adequate liquidity to pay its current debts, stay in business and grow the business. 'business. As we noted in our acid test ratio and current ratio for the company, we have a lower acid test ratio than the current ratio, which means that the current assets of the company The company depends on stocks. Therefore, the company must convert its old inventory into