The Performance Of The Apple Company (Coursework Sample)
Purpose of Assignment
Students should understand how to use the financial information and tools learned in the class on a public company, obtain public company SEC reports, and use that data to calculate a company's financial ratios and their comparison to industry or competitor standards.
Resources: Tutorial help on Excel and Word functions can be found on the Microsoft Office website. There are also additional tutorials via the web that offer support for office products.
Obtain Apples the most current SEC Form 10-K (annual financial report) from the company's website (Do not use the Annual Report that is sent to shareholders):
Calculate +(show equation used for calculations)+ and analyze the following ratios for your selected company for the last two years from the SEC Form 10-K:
(part 1) on a separate page ...
Time Interest Earned-
Gross Profit Margin-
Return on Assets-
Net Profit Margin-
Return on Equity (Use three ratio DuPont method)-
Compare and contrast your Apple's ratios to MICROSOFT and DELL standard ratios obtained from Yahoo Finance, Morningstar, MotleyFool, Macroaxis or any other Internet sources, and provide a detailed answer and analysis as to why Apple's ratios are different than MICROSOFT and DELL standards.
Prepare your analysis in a minimum of 875 words in Microsoft Word. The use of Microsoft Word tables is encouraged.
Cite the source of MICROSOFT and Dell ratio information.
Format your assignment consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.
This is one of my last assignments for this class, please do the best job you can. Thank you very much.
Apple Inc. is an American Technological company that was incorporated on 3rd January 1977. Since then the company has developed various products, both hardware, and software as well as professional and online services. This paper seeks to analyze the performance of the company for the last two years and also compares its performance with those of other competitors such as Microsoft and Dell.
Current Ratio. This ratio is the measure used to analyze the company’s capability to finance short-term debts based on the current assets. With a decline of about 7% in 2017, this indicates that Apple had a reduced capability to meet its short-term obligations (Wall Street Journal, 2018).
Debt Ratio. It reveals the ability of the company’s assets to finance its debts, for Apple, its two years debt ratio is above 50%, an indication that more than half of the company’s assets are financed using debts. There was an increase of 4% from 2016 to 64.28% in 2017.
Return on Assets. This ratio measures the ability of the company to deploy assets to generate sales and eventually profits. There was a decline of 1.32 from 2016 to 12.88 %,( Morning Star, 2018). Indicating decreased ability to utilize the available assets to generate revenue.
Return on Equity. This measures the number of profits the company generates using the money invested by shareholders. These figures, 7.55%, and 7.56% are fairly unfavorable to investors since they depict a low rate at which shareholder investments generate income for the company (Morning Star, 2018).
Equity Multiplier. This ratio shows the proportion of company’s assets that are financed or that are owned by the shareholders.In both years the figure is very high, indicating that most of the company’s assets are majorly financed by creditors and therefore the investors own less of the company assets, a situation which worsened in 2017(Morning Star,2018)....
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