Apple Financial Analysis 2
Company Analysis - Apple
TABLE OF CONTENTS
COMPANY OVERVIEW 5 Introduction 5 Brief History & Current Happenings 5 Apple Products & Services 7 Business Strategy 9
INDUSTRY ANALYSIS 10 SWOT Analysis 10 Industry Overview 13
FINANCIAL ANALYSIS 16
Short-Term Liquidity Analysis 16 Current ratio 16 Acid Test (or Quick Test Ratio) 16 Accounts Receivable Turnover 17 Inventory Turnover 17 Days in Sales Receivables 17 Days in Inventory 18 Days Purchases in Account Payable 18 Average Net Trade Cycle 18 Cash provided by operations to average current liabilities 18
CAPITAL STRUCTURE AND SOLVENCY RATIOS ANALYSIS 19 Long term debt to assets 19 Debt Ratio 19 Earnings to Fixed charges 20 Cash flow to fixed charges 20 Financial leverage index 20 Altman Z score 20
PROFIT MARGIN RATIOS ANALYSIS 21 Gross profit Margin 21 Net Profit Margin 21 Operating Profit Margin 22
RETURN ON INVESTMENT RATIOS ANALYSIS 22 Return on Assets 23 Return on Common Equity 23 Equity Growth Rate 23 Disaggregation of Return on Common Equity 23
ASSET UTILIZATION RATIOS ANALYSIS 24 Accounts Receivables Turnover 25 Inventory Utilization 25 Fixed Asset Turnover 26 Other Asset Turnover 26 Total Asset Turnover 26
FINAL RECOMMENDATION 27
BIBLIOGRAPHY 28
APPENDICES 29
Executive Summary This report serves as an analysis of a leading company in the computer manufacturing industry. Apple is presently within the top five positions for being one of the top computer manufacturing companies in the world. Currently, it holds 5.8% of the
TABLE OF CONTENTS
COMPANY OVERVIEW 5 Introduction 5 Brief History & Current Happenings 5 Apple Products & Services 7 Business Strategy 9
INDUSTRY ANALYSIS 10 SWOT Analysis 10 Industry Overview 13
FINANCIAL ANALYSIS 16
Short-Term Liquidity Analysis 16 Current ratio 16 Acid Test (or Quick Test Ratio) 16 Accounts Receivable Turnover 17 Inventory Turnover 17 Days in Sales Receivables 17 Days in Inventory 18 Days Purchases in Account Payable 18 Average Net Trade Cycle 18 Cash provided by operations to average current liabilities 18
CAPITAL STRUCTURE AND SOLVENCY RATIOS ANALYSIS 19 Long term debt to assets 19 Debt Ratio 19 Earnings to Fixed charges 20 Cash flow to fixed charges 20 Financial leverage index 20 Altman Z score 20
PROFIT MARGIN RATIOS ANALYSIS 21 Gross profit Margin 21 Net Profit Margin 21 Operating Profit Margin 22
RETURN ON INVESTMENT RATIOS ANALYSIS 22 Return on Assets 23 Return on Common Equity 23 Equity Growth Rate 23 Disaggregation of Return on Common Equity 23
ASSET UTILIZATION RATIOS ANALYSIS 24 Accounts Receivables Turnover 25 Inventory Utilization 25 Fixed Asset Turnover 26 Other Asset Turnover 26 Total Asset Turnover 26
FINAL RECOMMENDATION 27
BIBLIOGRAPHY 28
APPENDICES 29
Executive Summary This report serves as an analysis of a leading company in the computer manufacturing industry. Apple is presently within the top five positions for being one of the top computer manufacturing companies in the world. Currently, it holds 5.8% of the
Bibliography: (2007). Apple Company Profile. Retrieved June 14, 2007, from Hoover 's Company Information website: http://www.hoovers.com (2007) Information website: www.wikipedia.com/appleinc (2007) website: www.bls.gov (2007) (2007. Apple Company History. Retrieved June 16, 2007, from Wikipedia.com website: http://wikipedia.com (2007)