There are several ratios to analyze a company's return on investment. Investors always rely on the higher return ratio the more investors look for. Asset Revenue Formula: Asset Revenue = Revenue / Average # of Total Assets Microsoft Oracle 1. 85,320,000/((174,472,000+193,694,000)/2)= 46.35% 37,057,000/(( 110,903,000+112,180,000)/2)= 33.22%The above calculation proves that Microsoft uses resources more efficiently than Oracle. Microsoft uses resources to offset expenses and, in turn, generates more revenue. Return on Equity (ROE)Formula: ROE = Net Income / (Net Worth (prior year's total net worth + current year/2))No. Microsoft Oracle 1. 3,122,000/(8,013,000+80,083,000)/2)= 7.08% 2,814,000/((4,305,000+48,663,000)/2))= 10.63% The calculation ROE is also an indicator of how management uses equity capital to finance operations to grow the company. A high return on equity indicates that the company is using its investors' funds effectively. In the data calculation above, Oracle provides the highest rate of return compared to Microsoft. Return to activities