Apple, Inc The company creates, manufactures, and sells smartphones, computers, tablets, wearables, accessories, and related services. iPhone, Mac, iPad, wearables, home, and accessories are among its products. It also sells advertising, AppleCare, cloud services, digital content, and payment services. Most of the company's customers are individuals, small and medium-sized businesses, educational institutions, large businesses, and the government. The company sells its products through its retail and online stores and direct sales force. It sells products made by other companies to consumers, small and medium-sized businesses, educational institutions, large businesses, and the government. 

We need to understand the company's industry and type of business before we can analyze its financial statements. The financial analysis looks at a company's industry and economy so that a decision or suggestion can be made.

2. In the case of Apple Inc., itsStatement of Cash Flows is reported under the indirect cash flow method. As reflected in their consolidated cash flow statement, the report's starting point is net income. The income is then adjusted, considering depreciation and amortization, changes in assets and liabilities, etc., to reflect the cash flow from operating activities.

Apple Inc. chose the indirect method because it allows the company to see why its net profit differs from its cash flow.

3.

a) Liquidity

Cash Ratio:A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities

2021 Calculation

Cash ratio = Total quick assets Current liabilities

= 114,145 125,481 =0.91

Remarks:Apple Inc.'s cash ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Current ratio = a liquidity ratio calculated as current assets divided by current liabilities.

2021 Calculation

Current ratio = Current assets Current liabilities

= 134,836 125,481 =1.07

Remarks:Apple Inc.'s current ratio deteriorated from 2019 to 2020 and 2020 to 2021.

b) Solvency

Debt-to-assets ratio = solvency ratio, calculated as total debt divided by total assets.

2021 Calculation

Debt to assets = Total debt Total assets

= 287,912 351,002 =0.82

Remarks: Apple Inc.'s debt-to-assets ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Financial leverage ratio = solvency ratio, calculated as total assets divided by total shareholder equity.

2021 Calculation

Financial leverage = Total assets Shareholders' equity

= 351,002 63,090 =5.56

Remarks:Apple Inc.'s financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.

My classmate's post:

Pfizer Inc. (Pfizer) is a company that develops, produces, and sells biopharmaceuticals. The company sells medications to treat a range of ailments, including cancer, inflammation, rare diseases, metabolic, cardiovascular, and metabolic and pain issues in women. It additionally offers biosimilars, sterile injectable drugs, active pharmaceutical ingredients (APIs), and contract manufacturing services. Pfizer offers its goods through distributors, retailers, pharmacies, hospitals, doctor's offices, clinics, and other healthcare facilities. It gives internal and external stakeholders the chance to make well-informed investment decisions. In addition, financial statement analysis offers lending institutions a frank assessment of a company's financial standing, which aids in lending decisions.

The business employs the indirect cash flow approach. The measurement of indicators such as the current ratio, quick ratio, and operating cash flow ratio allows us to calculate liquidity ratios, which assess a company's capacity to satisfy debt obligations as well as its margin of safety. There are four types of liquidity, but we are only calculating two types here: the current ratio and the quick ratio.

Quick ratio= current assets - inventory/current liability

As I am attaching the balance sheet screenshot for more clarity

Current ratio = current assets/current liability =210719/201787 = 1.044

Debt to equity = total liability/total equity =399190 /474483 =.8413

The 3 margin ratios that are crucial to your business aregross profit margin, operating profit margin, and net profit margin

Net profit margin ratio =net income/net sales =31944/265069

=.1205

Gross profit margin =net sales-COGS/net sales

=265069-168262/265069

=.3652

explaining why they may or may not be comparable, considering each corporation's industry and market.