Ratio Analysis

In this assignment, you will conduct a broad analysis of your study company using multiple financial ratio categories to assess the sustainable growth rate. Taking the role of an educational consultant, develop a presentation about Apple, Inc. Address the following:

• Present a ratio analysis of the study company using data for the most recent year and the previous year. Show formulas and steps to generate each ratio.
• Write an analysis of the ratios and the conclusions that can be drawn by comparing the metrics of the company for the two years.
• Calculate the sustainable growth rate using the financial data for the most recent year for the company. Show the inputs and the steps to generating the result.
• Explain the meaning of the metric.

Develop an eight- to ten-slide presentation in PowerPoint format. Apply APA standards for writing style to the speaker notes.

 

Apple financial statement (2012 & 2011) from Finance,yahoo.com

 

Ratios

 

ROE

ROA

ROIC

Profit margin

Gross margin

Asset turnover

Fixed-Asset turnover

Invenotory turnover

Collection period (if credit sales unavailable, use sales)

Days’ sales in cash

Payables period (if purchases unavailable, use cost of goods sold)

Asset to equity

Debt to assets

Debt to equity

Times interest earned

Times burden covered

Debt too assets

Debt to equity

Current ratio

Acid test

  

20

20

20

20

10

10

Assignment 3 Grading Criteria	Maximum Points
Accurately calculated the quantities for the ratio analysis of the selected company.
Analyzed the ratios and drew conclusions by comparing metrics.
Accurately calculated the sustainable growth rate and showed the steps to generating the result.
Accurately explained the meaning of the sustainable growth rate metric.
Developed a presentation using appropriate style elements, text on the screen, and speaker notes.
Applied APA standards for editorial style, expression of ideas, and format of text, citations, and references.
Total:	100