Financial Statements Analysis 1. Using the Annual Report of a publicly-traded co

Question

Financial Statements Analysis 1. Using the Annual Report of a publicly-traded company of your choosing, answer the following questions in this discussion What are the Sales (also called Net Sales, Net Revenue, or Operating Revenue) for the most recent three years? This is normally the largest number. What are the Net Incomes (also called Net Earnings) for the most recent three years? What are the average total assets? Calculate the return on assets. How does the company's return on assets compare to its competitors? How well do you think this company is operating? Explain your answer 2. Post the name of your selected company and the link to the statement with your discussion post. You may use a service such as Yahoo Finance to help research industry averages. The notes to the financial statements will also be of use in answering the discussion questions. For many of the ratios in the discussion, you will need 2-3 years' worth of financial data.

Explanation / Answer

Solution:

Here, the company is Apple Inc. which is one of the most famous public US company.

(A) The net income for the most recent three years is given below:-

2014: $182795 Million

2015: $ 233715 Million

2016: $ 215639 Million

Note: The net sales has increased by 27% from 2014 to 2015 and then decreased by 7.73% from 2015 to 2016.

(b) The net income of Apple company for the recent years is given below:-

2014: $ 39510 Million

2015: $ 53394 Million

2016: $ 45687 Million

Note: The net income has increased by 35% from 2014 to 2015 and then decreased by 14.43 % from 2015 to 2016.

(C) The average total assets turnover of the Apple inc. is given below:-

2014: 0.83 times

2015:0.89 times

2016: 0.70 times

Note: The average asset turnover is increased by 7.22% and then decreased by 23.75%.

(D) The return on assets of Apple Inc. is quite comprehensive than its competitors like Sony and Samsung Mobiles. In 2016, the return on assets of the apple company is 14.93% whereas the return on assets of Sony Company is 0.91% and of Samsung company is 8.89%

(E) The Apple company is operating comprehensive well in terms of liquidity, profitability, solvency as well as marketability individually as well as in comparison to its competitors too.

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