Apple Ratio Analysis Required Using the financial statements of Apple calculate

Question

Apple Ratio Analysis Required Using the financial statements of Apple calculate the following ratios for the most recent year Instead of using "averages" you may using the year end balance to cakulate the ratio following r ce torato f Description Measures of Short term Solvency Formula 2014 Accounts Receivable Turnover Sales/AR Net cash provided by CFS Measures of Long Term Credit Risk Debt to Fquity Ratio Times Interest Eaned Ratio OInt Exp Measures of Profitability Gross Profit Ratio Profit Margin Ratio Sales N Net Sales Return on Tatal Assets (use Operating Income/Total l/Assets Earnings Per Share-use basic Income Measures of Evaluation by Common Stockhoiders Price-Earnings Ratio (use year Price/EPS Stock Price 9/26/14 end stock price) Basic 100.75 Return on Commorn Stockholders'Eauit NI/SE Stock Price 9/27/13 $68.96 Required provide the appropriate numbers for each year and calculate S change, % change, and common size % Common Common Current Year $ Prior Year $ | Change | % Change Size Current Size Prior Item Net Sales of Goods Sold Gross profit Other Expenses/Revs Net Income

Explanation / Answer

Answer-

1. Current Ratio = Current Assets/Current Liabilities

= $68,531 Millions/$63,448 Millions

= 1.08:1

2. Quick Ratio = Quick Assets/Current Liabilities

= (Cash and Cash equivalents+Marketable Securitites+Receivables)/Current Liabilities

= ($13,844+$11,233+$17,460) Millions/$63,448 Millions

= 0.67:1

3. Working Capital = Curent Assets-Current Liabilities

= $68,531 Millions-$63,448 Millions

= $5,083 Millions

4. Accounts Receivable Turnover Ration = Sales/Account Receivable

= $182,795 Millions/$17,460 Millions

= 10.47:1

5. Net cash provided by operating activities = $59,713 Millions

6. Debt to Equity Ratio = Debt/Stockholders' Equity

= $120,292 Millions/$111,547 Millions

= 1.07:1

7. Times interest earned ratio = Operating Income/Interest Expense

= $52,503 Millions/$339 Millions

= 154.88:1

8. Gross Profit Ratio = (Gross Profit/Net Sales)*100

= ($70,537 Millions/$182,795 Millions)*100

= 38.59%

9. Profit Margin Ratio = (Net Income/Net Sales)*100

=( $39,510 Millions/$182,795 Millions)*100

= 21.61%

10.Return on total assets = (Operating Income/Total Assets)*100

= ($52,503 Millions/$231,839 Millions)*100

=22.64%

11. Earnings per share = $6.49

12. Price Earnings Ratio = Stock price/EPS

= $100.75/$6.49

= 15.52 times

13. Return on common stockholders' equity = (Net Income/Stockholders' equity)*100

= ( $39,510 Millions/$111,547 Millions)*100

= 35.42%

Items Current Year Prior Year $ Change % Change Common Size Current Common Size Prior Net Sales $182,795 Millions $170,910 Millions $11885 Millions 6.95% Cost of Goods Sold $112,258 Millions $106,606 Millions $5,652 Millions 5.30% Gross Profit $70,537 Millions $64,304 Millions $6,233 Millions 9.69% All other expenses $31,027 Millions $27,267 Millions $3.760 Millions 13.79% Net Income $39,510 Millions $37,037 Millions $2,473 6.68%

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