Apple Inc

Week Arabast 2-South in A+ Share CNA-AA 1 1 MAC AaBb C AL AGAMA ISLAME Week 3: Ratio Analysis Project Purpose: Ratio analysis is helpful in making business decisions and determining investment decisions. By analyzing a company's financial statements and preparing ratios, this project will help you develop analytical and financial statement analysis skills. REQUIRED ELEMENTS Select a publicly traded company from the list below and acquire the company's most recent financial statements (either using their investor website or the SEC.gov website Use those statements to analyze the company, by caloulating ralios in Chapter 7 of your textbook 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 ratos must be the P/E An MS Excel Tomplate has been provided for your use. You may use it if you choose but it is not required. All the ratios are shown in the template but you only need to calculate the required number of railos per the instructions.) 1. Ratio Calculations a. Calculate 10 of the ratios found in Chapter 7, 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 ratins for the company. Uso Excel to calculate ratios and SHOW your WORKI) b. Calculale at least one (1) ralio from each category for two of the company's competitors for the CY and PY 2. Submit a copy of the 10-K Obtain a copy of the most recent annual report or from 10-K for the company. (Please DO NOT print the entire raport, instead rive as a PDF and turn in the electronic copy to the Assignments 3. Ratio Analysis Written Report Write a summary of your ratio analysis from Part 1 -ic, how is the company doing compared to the previous year? Explain the key ralios and address your company's liquidity, solvency, and profitability. Any significant ratios for the industry? How are they daing compared to competitors? You don't need to explain every ralio but make sure you explain the significant ones, major changes and what they tell you about the company. Discuss the strengths and weaknesses of ratio analysis. What else would you want to know about your company and where would you look, T you wanted to know more about the operations of the company? List of companies to select from: Starbucks, Proctor and Gamble, Target, McDonalds, Home Depot Microsoft, Walt Disney, Verizon, Apple, Inc, Johnson & Johnson, General Motors, PepsiCo. NOT BC Relo full 21 ATA === Www 5) render Current Year Gross Profit Prior Year Gross Profit Gross Margin #DIV/0! Grass Margin #DIV/0! Rebum on investment Rebum on Investment #DIV/OI #DIV/01 nel profieafler tax shareholder funds aperating profit before interest and hax shareholder funds + long-term debt aperaing pront before interest and tax Retum on capital employed NDIV/0! Return on capital employed net proft after tax shareholder funds operating profit before interest and tax shareholder funds long-term lebt operating prom before intarest and tax sales overheads ADIV/0! Operating Margin NDIV/0! Operating Margin #DIV/0! overheads Overhead sales Overhead sales #DIV/0! #DIV/0! Working Capital or Current ratia Working Capital ar Current ratio #DIVO #DIV/0! Acid-test (quick ratio) #DIV/0! current assets current liabilities Current Assets - Inventory current liabilities long-term debt shareholder funds + long-term dabe orelit belore laxes and interest Interest payable (expense #DIV/0! NDIV/0! Acid-test (quick ratio) #DIV/0! Gearing Ratio Interest cover or Times interest #DIV/0! earned #DIV/01 Total Asset Turnover Average Collection Period Days NDIV/0! sales outstanding 17 Gear Ratio 19 Interest cover or Times interest 20 camed 21 Total Asset Turnover 23 Average Collection Period Days 24 Sales outstandine #DIV/0! #DIV/01 ADIV/0 Inventory Turnover Inventory Turnover NDIV/0! current assets current liabilities Current Assets - Inventory current liabilities long-am dent shangholder funds - long-term debt profit belore taxes and interest Interest payable expensel sales *average assets Accounts Receivable Ave, daily Sales Cast of goods sald "average inventory stocks) Accounts Payable average daily purchases dividends paid # of shares dividends paid protit after tak dividends paid per share market value of shares profit after tax #of shares market value of shares Farnings per share DIV/0! Days Purchases cutstanding DIVO! Days Purchases outstanding ON/O! Divdands per share "average assets Accounts Receivable Ave daily Sales Cost of goods sold "average inventory Istocks) Accounts Payable average daily purchases dividends paid # of shares dividends paid profit after tax dividends paid per share market value of shares profit after tax # of shares market value of shares Earrings per share Dividends per share #DIV/0! #DIV/0! Payout ratio DIVO Payout ratio #OV/01 * Dividend yield ADIV/0! #DIV/0! NDIV/0! Dividend yield ADIV/0 Eamings per share (EPS) #DIVO Earnings per share (EPS) #DIV/0! * Price-eamings (P-E] ratio Price-eamings (P-Ej ratio ADIV/01 #DIV/01 #DIV/01 # D "average requires you to take the prior year ending balance and the current year ending balance, add them together, divide the total by 2 to get an average Pysty Week Arabast 2-South in A+ Share CNA-AA 1 1 MAC AaBb C AL AGAMA ISLAME Week 3: Ratio Analysis Project Purpose: Ratio analysis is helpful in making business decisions and determining investment decisions. By analyzing a company's financial statements and preparing ratios, this project will help you develop analytical and financial statement analysis skills. REQUIRED ELEMENTS Select a publicly traded company from the list below and acquire the company's most recent financial statements (either using their investor website or the SEC.gov website Use those statements to analyze the company, by caloulating ralios in Chapter 7 of your textbook 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 ratos must be the P/E An MS Excel Tomplate has been provided for your use. You may use it if you choose but it is not required. All the ratios are shown in the template but you only need to calculate the required number of railos per the instructions.) 1. Ratio Calculations a. Calculate 10 of the ratios found in Chapter 7, 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 ratins for the company. Uso Excel to calculate ratios and SHOW your WORKI) b. Calculale at least one (1) ralio from each category for two of the company's competitors for the CY and PY 2. Submit a copy of the 10-K Obtain a copy of the most recent annual report or from 10-K for the company. (Please DO NOT print the entire raport, instead rive as a PDF and turn in the electronic copy to the Assignments 3. Ratio Analysis Written Report Write a summary of your ratio analysis from Part 1 -ic, how is the company doing compared to the previous year? Explain the key ralios and address your company's liquidity, solvency, and profitability. Any significant ratios for the industry? How are they daing compared to competitors? You don't need to explain every ralio but make sure you explain the significant ones, major changes and what they tell you about the company. Discuss the strengths and weaknesses of ratio analysis. What else would you want to know about your company and where would you look, T you wanted to know more about the operations of the company? List of companies to select from: Starbucks, Proctor and Gamble, Target, McDonalds, Home Depot Microsoft, Walt Disney, Verizon, Apple, Inc, Johnson & Johnson, General Motors, PepsiCo. NOT BC Relo full 21 ATA === Www 5) render Current Year Gross Profit Prior Year Gross Profit Gross Margin #DIV/0! Grass Margin #DIV/0! Rebum on investment Rebum on Investment #DIV/OI #DIV/01 nel profieafler tax shareholder funds aperating profit before interest and hax shareholder funds + long-term debt aperaing pront before interest and tax Retum on capital employed NDIV/0! Return on capital employed net proft after tax shareholder funds operating profit before interest and tax shareholder funds long-term lebt operating prom before intarest and tax sales overheads ADIV/0! Operating Margin NDIV/0! Operating Margin #DIV/0! overheads Overhead sales Overhead sales #DIV/0! #DIV/0! Working Capital or Current ratia Working Capital ar Current ratio #DIVO #DIV/0! Acid-test (quick ratio) #DIV/0! current assets current liabilities Current Assets - Inventory current liabilities long-term debt shareholder funds + long-term dabe orelit belore laxes and interest Interest payable (expense #DIV/0! NDIV/0! Acid-test (quick ratio) #DIV/0! Gearing Ratio Interest cover or Times interest #DIV/0! earned #DIV/01 Total Asset Turnover Average Collection Period Days NDIV/0! sales outstanding 17 Gear Ratio 19 Interest cover or Times interest 20 camed 21 Total Asset Turnover 23 Average Collection Period Days 24 Sales outstandine #DIV/0! #DIV/01 ADIV/0 Inventory Turnover Inventory Turnover NDIV/0! current assets current liabilities Current Assets - Inventory current liabilities long-am dent shangholder funds - long-term debt profit belore taxes and interest Interest payable expensel sales *average assets Accounts Receivable Ave, daily Sales Cast of goods sald "average inventory stocks) Accounts Payable average daily purchases dividends paid # of shares dividends paid protit after tak dividends paid per share market value of shares profit after tax #of shares market value of shares Farnings per share DIV/0! Days Purchases cutstanding DIVO! Days Purchases outstanding ON/O! Divdands per share "average assets Accounts Receivable Ave daily Sales Cost of goods sold "average inventory Istocks) Accounts Payable average daily purchases dividends paid # of shares dividends paid profit after tax dividends paid per share market value of shares profit after tax # of shares market value of shares Earrings per share Dividends per share #DIV/0! #DIV/0! Payout ratio DIVO Payout ratio #OV/01 * Dividend yield ADIV/0! #DIV/0! NDIV/0! Dividend yield ADIV/0 Eamings per share (EPS) #DIVO Earnings per share (EPS) #DIV/0! * Price-eamings (P-E] ratio Price-eamings (P-Ej ratio ADIV/01 #DIV/01 #DIV/01 # D "average requires you to take the prior year ending balance and the current year ending balance, add them together, divide the total by 2 to get an average Pysty