Answer To: Deliverable Length: 2-3 pages (Please include introduction, body, conclusion and reference page)....
Robert answered on Dec 23 2021
RATIO ANALYSIS
RATIO ANALYSIS
[Type text]
RATIO ANALYSIS
Student Name:
University Name:
[Type text] Page 2
Introduction
Apple Inc. was started in a garage in 1976 by two college dropouts 25-year-old Steve
Wozniak and 21-year-old Steve Jobs. It is now one of the largest manufacturers of personal
computers (PC’s), mobile communication devices and portable music and video players. The
portfolio of the company includes desktops and portable computers (Mac), iPhone, iPod
(portable digital music and video players), Apple TV, Xserve, a variety of consumer and
professional software applications, the Mac OS X operating system, other digital content and
applications through the iTunes Store (provided by third parties), and other accessories,
services and support offerings. The sale of its products across the globe is conducted through
the online stores, its direct sales force, retail stores, and third-party wholesalers, retailers, and
value-added resellers. In addition, the Company sells a variety of Mac, iPhone and iPod
compatible products (manufactured and supplied by third parties), including application
softwares, printers, storage devices, speakers, headphones, and various other accessories and
peripheral devices through its online and retail stores. The company’s target market consists
of individual customers/users, small and mid-sized businesses (“SMB”), educational
institutions, other enterprises, government, and creative markets.
Analysis
Apple
Ratio 2012 2011
Return on Assets 28.54% 27.07%
Return on Equity 42.84% 41.67%
Gross Profit Ratio 43.87% 40.00%
Debt to Equity Ratio 0.489 0.519
Debt Ratio 0.329 0.342
[Type text] Page 3
Current Ratio 1.496 1.610
Acid Test Ratio 1.039 1.580
Inventory Turnover Ratio 112.12 118.499
Asset Turnover 1.0704 1.13
PE Ratio 12.25
According to Drake “Just by looking at a profit and loss account and a balance sheet can give
you a clear idea of the financial performance of any business, but for many people these
statements are somewhat discouraging. However, after calculating a few financial ratios and
its analysis can help in assessing quickly how well the business is performing and would also
give early warning of financial problems.”
Return on Assets: It...