Apple Inc

1345 Words3 Pages

Objective of Study • To Study The SWOT Analysis Of Apple Inc. • To Study The Growth Of Apple Inc. with respect to its market share. • To Do The Financial Analysis Of Apple Inc. • To Study The Financial Trend Of Apple Inc. Ratio Analysis Of Apple Inc. 1. Measures of Liquidity. current assets A. Current ratio = ----------------- current liabilities Current Ratio (2009) = 2.74 Current Ratio (2010) = 2.01 Current Ratio (2011) = 1.6 Current Ratio (2012) = 1.49 Graph-1.1 Interpretation: Measuring the liquidity through the current ratio, with 2.74 in the year 2009,0.74 above the standard, with the decline in the following year meeting exactly the standard at 2% in the year 2010, and a steep decline in the year 2011-2012 as compared to its standard.Resulting in the decline in firm’s ability to meet its day-to-day operating expenses. The current liabilities from 2009 to 2012 have increased by 27.03 billion whereas the investments in current assets have increased just by 26.09 billion, which causes the decline in the current ratio. To cope up with this problem the company should invest more in current assets and should reduce its current liabilities. Current assets - inventory B. Quick ratio = -------------------------------- Current liabilities Quick Ratio (2009) = 2.70 Quick Ratio (2010) = 1.96 Quick Ratio (2011) = 1.58 Quick Ratio (2012) = 1.47 Graph-1.2 Interpretation: Same as Current ratio the quick ratio of Apple Inc. is decreasing from the year 2009 to 2012 from 2.70 to 1.74, which can cause problem for Apple Inc. to meets its short-term obligations. C. Net Working Capital = current assets - current liabilities Net Working Capital (2009) = 20.05 B... ... middle of paper ... ... industrial giants such as Microsoft, Nokia or even Samsung hands down, it is the presentations. • Apple is self-sufficient and creates its own internal components for the core of its computers-it is one of its strengths. • The growth rate, according to Gartner, tops all other computer makers and puts Apple in fourth place overall for market share. • Based on the performed analysis, Apple Inc. is financially healthy and strong. The company’s growth has been extraordinary during the past five years. • Apple is able to finance its operations by current liabilities only. Its financial structure is outstanding with 100% Equity. Apple Inc. does not have any long-term debt, which makes the company very financially independent. • Apple has substantially improved in its key measures of profitability. In terms of ROA, ROE, and profit margins, Apple strengthened financially.

More about Apple Inc

Open Document