Accounting Question

The company is Apple Inc.

Part 1: (three to five paragraphs)

Summarize the trends in your company’s ratio performance over the 3 most recent years. Be sure to address the following ratios included in Appendix C:

Profitability ratios: ROA, ROE, return on investment (ROI).

Liquidity ratios: quick ratio, current ratio.

Debt management ratios: long-term debt to equity, total debt to equity, interest coverage ratio.

• Asset management ratios: total asset turnover, receivables turnover, inventory turnover, and accounts payable turnover.

Per share: book value per share.

• Part 2: (two paragraphs)
• Interpret whether the trend for each ratio (listed in Part 1) is an improvement or a decline in performance for the company.
• Create a table that lists each ratio as either a strength or a weakness in the most current year, based on its trend and your interpretation.
• Determine the overall financial strength of the company based on the ratios identified as either strengths or weaknesses.
• Consider all of the ratios discussed so far. Is the company’s strength the fact that the debt management ratios are improving? Or is it that the liquidity ratios are increasing? Is the company’s weakness that the turnover ratios are declining? Or is the company’s weakness that debt management ratios are weakening?

Categorize the company’s overall ratio performance as either strong, neutral, or weak, based on your determination from the ratios.

Part 3: (one to two paragraphs)

Compare your chosen company’s ratio performance to the industry competitor ratios in the most recent year based on Appendix D. Be sure to address the following ratios included on Appendix D:

• Profitability ratios: ROA, ROE, gross margin, and net margin.
• Liquidity ratios: quick ratio and current ratio.
• Debt management ratios: long-term debt to equity, total debt to equity, and interest coverage ratio.

Asset management ratios: asset turnover and inventory turnover.

• Create a table that lists each ratio as either higher or lower than the average ratio for the competitors in the industry.
• Part 4: (one paragraph)

Categorize the company’s overall financial performance as either better than average, average, or worse than average compared to the industry based on the ratios.

Interpret which ratios are the most important and explain your reasoning.

Justify your conclusion based on the table you created, your interpretation of which ratios are the most important, and the company’s overall ratio performance compared to the industry competitors

• The Section 2: Financial Ratio Analysis paper

Must be two to three double-spaced pages in length including any tables or calculations (but not including title and references pages) and formatted according to  as outlined in the Writing Center’s

APA Formatting for Microsoft Word

• Must include a separate title page with the following:
• Title of paper in bold font
• Space should be between title and the rest of the information on the title page.
• Student’s name
• Name of institution (The University of Arizona Global Campus)

Course name and number

Instructor’s name

Due date

• Must utilize academic voice. See the Academic Voice.
• Must include a separate references page that is formatted according to APA Style as outlined in the Writing Center. See the APA: Formatting Your References List site. resource in the Writing Center for specifications.
• Must cite where the financial statement information comes from (i.e., Mergent)
• For help citing the information from Mergent, see the BUS401: Principles of Finance Research Guide

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Apple Inc (NMS: AAPL)
Exchange rate used is that of the Year End reported date
Profitability Ratios
ROA % (Net)
ROE % (Net)
ROI % (Operating)
EBITDA Margin %
Calculated Tax Rate %
Revenue per Employee
09/30/2023
26.99
168.71
65.01
31.94
14.72
2335855
09/24/2022
28.44
175.94
66.81
33.05
16.2
2411045
09/25/2021
28.13
147.85
59.77
32.88
13.3
2381961
Liquidity Ratios
Quick Ratio
Current Ratio
Net Current Assets % TA
09/30/2023
0.84
0.99
-0.49
09/24/2022
0.71
0.88
-5.27
09/25/2021
0.91
1.07
2.67
Debt Management
LT Debt to Equity
Total Debt to Equity
Interest Coverage
09/30/2023
1.55
1.8
624.6
09/24/2022
1.95
2.37
1126.76
09/25/2021
1.73
1.98
–
Asset Management
Total Asset Turnover
Receivables Turnover
Inventory Turnover
Accounts Payable Turnover
Property Plant & Equip Turnover
Cash & Equivalents Turnover
09/30/2023
1.07
6.17
37.98
5.94
8.76
14.03
09/24/2022
1.12
7.03
38.79
6.65
9.7
13.5
09/25/2021
1.09
8.25
40.03
7.56
9.63
10.06
Per Share
Cash Flow per Share
Book Value per Share
09/30/2023
6.89
4
09/24/2022
7.55
3.18
09/25/2021
6.25
3.84
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Apple Inc (NMS: AAPL)
* all results are stated in US
Dollars
Target Country (United States)
Peer Grouping by:
Peer Scope:
Company Name
NAIC
country
ROA %
(Net) latest
ROE %
Gross Net Profit
(Net) – Margin % Margin %
latest
– latest
– latest
Quick
Ratio latest
Current
Ratio latest
Apple Inc
Dell Technologies Inc
Helo Corp
HP Inc
Intel Corp
Mercury Systems Inc
Motorola Solutions Inc
Oracle Corp
Super Micro Computer Inc
26.99
168.71
3.75
59.49
173.60
8.63
0.91
1.64
-1.21
-1.83
13.07 NM
6.98
18.61
37.67
44.13
23.60
68.73
21.42
40.04
32.52
49.81
72.85
18.01
25.31
3.63
15.77
6.07
3.11
-2.91
17.13
17.02
8.98
0.84
0.44
1.05
0.36
1.01
2.45
0.79
0.74
1.15
0.99
0.74
1.73
0.73
1.54
4.02
1
0.91
2.31
Average
15.25
41.23
10.46
0.98
1.55
75.96
LT Debt
to Equity latest
1.55
0.44
0.33
6.50
80.54
0.06
14.90
Total Interest
Total Inventory
Debt to Coverage
Asset Turnover Equity – latest Turnover latest
latest
latest
1.80
624.60
1.07
37.98
4.36
1.03
16.09
3.77
6.31
1.42
5.84
0.47
0.29
2.67
0.33
0.42
2.16
8.31
10.62
0.76
5.32
84.33
4.07
0.41
0.15
72.55
2.07
3.91
15.90
120.42
1.25
10.57