Ratio Analysis for Apple, Inc.

Ratio Analysis for Apple, Inc.
Student’s Name
Institutional Affiliation
Course
Instructor
Date
Ratio Analysis for Apple, Inc.
Apple, Inc. is a multinational company that deals with manufacturing and selling personal computers, smartphones, tablets, and other products. It has its manufacturing operations across North America, Asia, and Ireland. With a workforce of roughly 154,000 employees, it sells its products and services across the globe. In our review of the financial statements of this company for the year ended September 25, 2021, we shall analyze by calculating and evaluating seven of its financial ratios and making our predictions on its future performance. The ratio calculations are presented in the attached excel spreadsheet.
The debt to equity ratio is 4.56. It is a component of the total liabilities and shareholders’ equity, and in this scenario, the company has $4.56 of debt for each $1.00 of equity. This position means that the company is financing its operations with more debt as compared to shareholder equity. The current ratio is 1.07, a quotient of current assets over current liabilities. It is interpreted to mean that the company has an equal amount of current assets to meet its short-term debt in the form of current liabilities.
The return on equity ratio is 1.47, being the quotient of the company’s net income and the average of the shareholders’ equity. It indicates how the company is utilizing shareholders’ investment to achieve profitability. The return on equity ratio measures how efficiently a company uses its equity to generate profit (Corporate Finance Institute, n.d.). In this case, the investors’ return is one and a half times their investment. The quick ratio is 0.91,...