Based on the company Apple Inc. refer to Tables A-1 through A-5 in Appendix II of the text for the...

Question

Based on the company Apple Inc. refer to Tables A-1 through A-5 in Appendix II of the text for the operational definitions of and formulas for numerous common financial ratios, including profitability, liquidity, leverage, activity, and shareholders' return. Using these formulas, complete at least one ratio from each of the five categories, though you may apply as many of the ratios for which you can find the required information in the firm's financial reports. On your calculations page, specify for which formulas you are solving.

In an assessment of approximately 750 words, address the following:

Determine which of the ratios provide the most key insights into the firm's current level of performance. How can you assess whether the results of your calculations are positive or negative? Explain which of the ratios give you reason to be concerned with the organization's current strategy and why.

The Organizational and Operational Plans assignment references the possible benefits and risks of forming a strategic alliance. What would be the risks of forming a strategic alliance in terms of the firm's profitability ratios? Which of those five ratios is most likely to reveal immediate information for analysis of the alliance's effectiveness?

Considering today's financial climate, how likely is it that the organization could acquire the capital necessary to support an aggressive value-enhancement strategy? From where would that capital originate? Compared to current interest rates, what do you believe is a realistic interest rate the firm might incur? Which of the liquidity ratios will be impacted by the influx of capital, if borrowed?

Sanjukta · Accepted Answer

2
Strategic management
1.  
It can be said that the liquidity ratios and the profitability ratios tend to give one of the main insight into the present performance of a firm. Furthermore, the profitability ratios for instance net profit margin, operating profit margin as well as the return on the total assets determines whether a firm is making profits after covering their expenses. The liquidity ratios for instance the quick and current ratio ascertain whether an organisation can meet its present debt obligation. Throwing light on above-mentioned discussion it can be said that in assessing whether the calculation outcomes are negative or positive, the ratios are mainly contrasted with the averages of the industry or the general rule that highlights that ratios above 1.0 are positive but ratios that are below 1.0 are extremely negative. Furthermore, this is not at all applicable for leveraging ratios for example debt ratio with which the ratio is above 1.0 is regarded to be negative and below 1.0 is positive. It is needless to say that the ratios which has the ability of raising concern in reference to the strategy of a company consists of low liquidity ratios, low profitability ratios, as well as high leverage ratios (Simko). 
Furthermore, the low net profit margin simply indicates the fact that the firm is generating less income and incurring losses from its operations. Furthermore, the low liquidity ratios for instance the current ratio below the 1.0 highlights that the organisation lacks the ability of meeting the short-term obligation in terms of finance.

Based on the company Apple Inc. refer to Tables A-1 through A-5 in Appendix II of the text for the operational definitions of and formulas for numerous common financial ratios, including...

Answer To: Based on the company Apple Inc. refer to Tables A-1 through A-5 in Appendix II of the text for the...

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment