Nono

Topics: Financial ratios, Balance sheet, Generally Accepted Accounting Principles Pages: 9 (2431 words) Published: June 19, 2013
Principles of Accounting
Group Assignment
Class: SE0666
Group: 5
Members:
* Nguyễn Cự Phát (PhatNC60364)
* Hồ Đắc Nghĩa (NghĩaHD)
* Nguyễn Hữu Thịnh (ThinhNH)
* Trương Quang Bảo (BảoTQ

Using knowledge so far to find out the problem in financial management of any company at home or abroad, give explanation and find out the lesson behind. (Report of 1500-2000 words).

Apple
I. Introduction
+ Apple Inc., formerly Apple Computer, Inc., is an American multinational corporation headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software and personal computers. Its best-known hardware products are the Mac line of computers, the iPod music player, the iPhone smartphone, and the iPad tablet computer. Its software includes the OS X and iOS operating systems, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and production suites. The company was founded on April 1, 1976, and incorporated as Apple Computer, Inc. on January 3, 1977. The word "Computer" was removed from its name on January 9, 2007, reflecting its shifted focus towards consumer electronics after the introduction of the iPhone. + Apple is the world's second-largest information technology company by revenue after Samsung Electronics, and the world's third-largest mobile phone maker after Samsung and Nokia + Core Bussiness of Apple : Mac, Ipad, Ipod, Iphone, AppleTV and software II. Financial Ratio Analysis and Comparison

1. Note from Income Statement and Balance Sheet.
* Total Net Income of Coca-cola.Co was suddenly high in 2010. This was caused by Income Before Income Taxes. As in Coca-cola annual report, it was illustrated by: “The increase in 2010 was primarily attributable to a $4,978 million gain due to the re-measurement of our equity investment in CCE to fair value upon our acquisition of CCE's North American business.” * Pepsi.Co’s Current Assets in 2010 was transferred to non-current assets mostly in 2011. So total assets of this company increase except Current Assets.| | 2. Total Asset Turnover

| 2011| 2010|
PepSi. Co| 0.943085| 1.071064|
Cocacola. Co| 0.61| 0.58|
From these factors, it shows that the total assets in 2011 of Pepsi.Co declined markedly. In 2010 their total assets was 1.07, but by 2011 only 0.9. Compared with competitors Cocacola.Co grew slightly and tended to increase in the coming years. However, these both companies in two years are still below the value of 1.8. It means that theaverageassetsofthese bothcompanygeneratedlessrevenuethantheoverallindustry average. The two companies should improve the efficiency of use of assets better by trying to increase sales or sell their stagnant assets which are not needed. 3. Return on Asset ( ROA )

| 2011| 2010|
Pepsi.Co| 9.14| 11.7|
Coca-cola.Co| 11.21| 19.42|

The return on assets percentage shows how profitable a company's assets generate into revenue. This number tells you what the company can do with what it has, how many dollars of earnings they derive from each dollar of assets they control. Return on Asset of both Pepsi. Co and Coca-cola. Co decreased from 2010 to 2011. It means in 2011 2 companies invested more money but they earned less than what they had earned in 2010. As the ratio of return on asset, we can see that Coca-cola. Co has a more effective strategy in investment that Pepsi.Co. Because the ratio of Coca is higher than Pepsi’s. 4. Profit Margin ( ROS )

| 2011| 2010|
Pepsi.Co| 9.60| 10.93|
Coca-cola.Co| 18.42| 33.63|

Profit Margin refers to a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue. As we can see, Coca-cola has a great profit, it’s greater that Pepsi.Co’s profit 3 times in 2010. But a year later Coca-cola’s profit decreased 2 times while profit of Pepsi.Co was just decreased slightly. Profit margin is an...
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