Acquire Apple, Inc.'s  most recent financial statements (either using their investor website or the SEC.gov website). Use those statements to analyze the company, by calculating ratios for the company’s Current Year (CY) and the Prior Year (PY).  When necessary, use Nasdaq or Yahoo Finance to determine the market price of the stock.  Note: one of your ratios must be the P/E ratio.

1. Ratio Calculations
   1. Calculate 10 ratios, for the current (CY) and previous year (PY). Calculate at least one ratio from each category in your textbook for profitability liquidity, gearing, efficiency and shareholder return. Compare CY to PY ratios for the company. (Use Excel to calculate ratios and SHOW your WORK!)
   2. Calculate at least one (1) ratio from each category for two of the company’s competitors for the CY and PY.

List of ratios to use:

1. Liquidity ratios

1. Current ratio
2. Profit before depreciation and amortisation to current liabilities
3. Operating cash flow to current liabilities (OCFCL)
4. Cash balance to total liabilities (CBTL)

2. Leverage ratios

1. Debt to equity ratio (DE ratio)
2. Total liabilities to total tangible assets (TLTAI)
3. Interest cover ratio

3. Profitability ratios

1. Earnings per share (EPS )
2. Gross profit margin
3. Net profit margin
4. Return on assets (ROA )
5. Return on equity (ROE )

4. Valuation ratios

1. Price to earnings ratio (PE )
2. Price/earnings to growth ratio
3. Dividend yield

Apple Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except number of shares which are reflected in thousands and per share amounts)

 

	Years ended
	September 28, 2019				September 29, 2018				September 30, 2017
Net sales:
Products	$	213,883			$	225,847			$	196,534
Services	46,291				39,748				32,700
Total net sales	260,174				265,595				229,234
Cost of sales:
Products	144,996				148,164				126,337
Services	16,786				15,592				14,711
Total cost of sales	161,782				163,756				141,048
Gross margin	98,392				101,839				88,186
Operating expenses:
Research and development	16,217				14,236				11,581
Selling, general and administrative	18,245				16,705				15,261
Total operating expenses	34,462				30,941				26,842
Operating income	63,930				70,898				61,344
Other income/(expense), net	1,807				2,005				2,745
Income before provision for income taxes	65,737				72,903				64,089
Provision for income taxes	10,481				13,372				15,738
Net income	$	55,256			$	59,531			$	48,351
Earnings per share:
Basic	$	11.97			$	12.01			$	9.27
Diluted	$	11.89			$	11.91			$	9.21
Shares used in computing earnings per share:
Basic	4,617,834				4,955,377				5,217,242
Diluted	4,648,913				5,000,109				5,251,692

See accompanying Notes to Consolidated Financial Statements.

 

Apple Inc. | 2019 Form 10-K | 29