Below are the key metrics I need help with to evaluate based on Apple's ratios to the industry ratios I included in the draft assignment.

• Inventory Turnover
• Current Ratio
• Debt Ratio
• Time Interest Earned
• Gross Profit Margin
• Equity Multiplier
• Return on Assets
• Net Profit Margin
• Return on Equity (Use three ratio DuPont method)

I'm attaching our latest documents for your reference.

APPLE INC. 2015 CURRENT ASSETS CASH AND CASH EQUIVALENTS SHORT-TERM INVESTMENTS NET RECEIVABLES INVENTORY COST OF GOODS SOLD REVENUE (NET SALES) NET INCOME OTHER CURRENT ASSETS TOTAL CURRENT ASSETS $21,120 $20,481 $16,849 $2,349 $140,089 $223,715 $53,394 $15,085 $493,082 Inventory Turnover 2016 Inventory Turnover Ratio = 111.86 COST OF GOODS SOLD BEGINNING INVENTORY ENDING INVENTORY Inventory Turnover 2015 Inventory Turnover Ratio = 108.30 COST OF GOODS SOLD BEGINNING INVENTORY ENDING INVENTORY DEPT RATIO 2016 DEPT RATIO = 0.9019 TOTAL LIABILITIES TOTAL ASSETS DEPT RATIO 2015 DEPT RATIO = 0.7393 TOTAL LIABILITIES TOTAL ASSETS TIME INTEREST EARNED 2016 TIME INTEREST EARNED RATIO = 46.635 EBIT INTEREST EXPENSE TIME INTEREST EARNED 2015 TIME INTEREST EARNED RATIO = 141.080 EBIT INTEREST EXPENSE GROSS PROFIT MARGIN 2016 GPM = CGS - Rev (net sales) GPM = $85,968M COST OF GOODS SOLD REVENUE (NET SALES) GROSS PROFIT MARGIN 2015 GPM = CGS - Rev (net sales) COST OF GOODS SOLD REVENUE (NET SALES) GPM = $93,626M EQUITY MULTIPLIER 2016 Total Asset / Total Equity EQUITY MULTIPLIER = 67.49% TOTAL ASSET TOTAL EQUITY EQUITY MULTIPLIER 2015 Total Asset / Total Equity EQUITY MULTIPLIER = TOTAL ASSET TOTAL EQUITY RETURN ON ASSETS 2016 NET INCOME/TOTAL ASSETS ROA = 13.82% NET INCOME TOTAL ASSETS RETURN ON ASSETS 2015 NET INCOME/TOTAL ASSETS ROA = 18.38% NET INCOME TOTAL ASSETS NET PROFIT MARGIN 2016 NET PROFIT/TOTAL REVENUE*100 NET PROFIT MARGIN = $90,058M NET PROFIT TOTAL REVENUE NET PROFIT MARGIN 2015 NET PROFIT/TOTAL REVENUE*100 NET PROFIT MARGIN = $82,243M NET PROFIT TOTAL REVENUE NET PROFIT MARGIN 2016 NET PROFIT/TOTAL REVENUE*100 NET PROFIT MARGIN = NET PROFIT TOTAL REVENUE RETURN ON EQUITY (DUPONT METHOD) 2016 ROE = NET INCOME/TOTAL EQUITY ROE = NET INCOME/NET SALES X SALES/TOTAL EQUITY ROE = NET PROFIT MARGIN X RETURN ON EQUITY 44,469/132,425 44,469/211,145 X 211,145/132,425 (0.2106) 21.06 X (1.5944) 1.6 ROE = 90,058.30 X 33.69 RETURN ON EQUITY (DUPONT METHOD) 2015 ROE = NET INCOME/TOTAL EQUITY ROE = NET INCOME/NET SALES X SALES/TOTAL EQUITY ROE = NET PROFIT MARGIN X RETURN ON EQUITY $53,394/111,355 $53,394/111,355 X 155,041/19,355 53,394/155,041 X 155,041/19,355 ROE = 87,373 X 44.74 2016 $20,484 $46,671 $15,754 $2,132 $131,376 $85,968 $44,469 $8,283 $355,137 $131,376.0 2132 217 $140,089.00 2349 238 80,610 89,378 79,006 106,869 61,372 1,316 72,515 514 131,376 45,408 85,968 317,341 223,715 93,626 89,378 132,425 67.49% 390,479 119,355 327.16% 44,469 321,686 13.82% 53,394 290,479 18.38% 61,780 68.60 90,058 52,109 6336.00% 82,243 52,109 63.36% 8,224,274 $3,034,054 3,909,068 317341 1 Apple Inc. vs. Samsung Financial Analysis Team A FIN/370 August 23, 2017 2 Apple Inc. vs. Samsung Financial Analysis Apple Inc. is a technology company that designs, manufactures and markets mobile communication devices as well as computers, and portable music players to consumers, businesses, and government customers across the world. The company is also a retailer for related software, accessories, networking solutions and services. Apple Inc. is primarily known for its line of mobile phones and wearable tech, but it also manufactures tablets, computers. Apple Inc.'s largest competitor is Sumsung Electronics Co., Ltd. It participates in the consumer electronics, mobile communications, information technology, and device solutions businesses worldwide. Samsung Electronics has a huge line of products including mobile phones, wearable tech gear, televisions, computer monitors, digital components such as Blu-Ray and DVD players, and printers. Consumers are very passionate about their personal preferences in relation to these two competing companies. People who love Apple Inc. products rarely transition to Samsung Electronics and vice versa, but which company is better from a financial investment perspective? Apple Inc. Financials When diving into Apple Inc.'s financial data, we can see that primary data points are trending in the right direction. The liquidity ratio is a key indicator when a company is or may become suffering financial difficulties. However, a high liquidity is not necessarily a good thing either as it may be a sign the company is overly focused on liquidity. \"A company may have a very impressive-looking liquidity ratio but precisely because of its high liquidity level, it may present an unfavorable picture to analysts and investors who then consider other measures of a company's performance such as the profitability ratios of return on capital employed (ROCE) or return on equity (ROE)\" (Maverick, J. 2015). Apple Inc.'s liquidity ratios have improved across the board since 2014, which is a good sign for the company. We can see that when founder Steve Jobs passed away in 2011, this had a 3 financial impact on the company, but it seems to now be on an upward trend. It seems to me also in looking at the history, that one can easily see that the Apple iPhone/iPad dominated the industry in 2007-2009 which makes sense because the first real competitor of the iPhone was released in 2008. Morningstar.com, 2017 4 Morningstar.com, 2017 Samsung Electronics Ltd. Financials Replace the level two heading with the words for your heading. The heading must be in bold font. Morningstar.com, 2017 5 Morningstar.com, 2017 Key Stats - AAPL vs. the Industry 6 Morningstar.com, 2017 Primary Competitors Morningstar.com, 2017 Conclusion Apple Inc has set the benchmark for the technology industry with its strongest competitor being Samsung, the comparison of these two companies are as follows. Each of these companies are solvent within the area of specialization, Samsung is the Benchmark for the Android market in 7 the cell phone, tablet community. Apple is its own entity in the MAC OS software industry, there is no other MAC OS company other than Apple Inc. When we look at the public financials for each company we can see their solvency, liquidity and overall performance. This allows everyone to see if it is a viable option to invest in either company. It also gives the everyday consumers the insight to know that neither company will be closing shop and will continue to bring them the best and latest innovations in the technology world. This gives the consumer the option of choice in two of the best technology companies to choose from depending on their own individual preferences. References Apple - Annual Report. (2017). Investor.apple.com. Retrieved 19 August 2017, from http://investor.apple.com/secfiling.cfm?filingID=1193125-15-356351&CIK=320193 Growth, Profitability, and Financial Ratios for Apple Inc (AAPL) from Morningstar.com. (2017). Financials.morningstar.com. Retrieved 19 August 2017, from http://financials.morningstar.com/ratios/r.html? t=AAPL®ion=USA&culture=en_US Growth, Profitability, and Financial Ratios for Samsung Electronics Co Ltd (SSNLF) from Morningstar.com. (2017). Financials.morningstar.com. Retrieved 18 August 2017, from http://financials.morningstar.com/ratios/r.html?t=SSNLF®ion=usa&culture=enUS Maverick, J. (2015). Is it important for a company always to have a high liquidity ratio? Investopedia. Retrieved 19 August 2017, from http://www.investopedia.com/ask/answers/011215/it-important-company-always-havehigh-liquidity-ratio.asp 8 SSNLF Income Statement | SAMSUNG ELECT LTD(F) Stock - Yahoo Finance. (2017). Finance.yahoo.com. Retrieved 18 August 2017, from https://finance.yahoo.com/quote/SSNLF/financials?p=SSNLF 8/18/2017 Growth, Profitability, and Financial Ratios for Samsung Electronics Co Ltd (SSNLF) from Morningstar.com Samsung Electronics Co Ltd SSNLF Financials Ascending Export 2007-12 Revenue KRW Mil 2008-12 2009-12 2010-12 2011-12 2012-12 2013-12 2014-12 2015-12 2016-12 TTM 98,507,817121,294,319136,323,670154,630,328165,001,771201,103,613228,692,667206,205,987200,653,482201,866,745202,632,019 Gross Margin % 28.0 Operating Income KRW Mil 8,973,286 26.0 30.6 33.6 32.0 37.0 39.8 37.8 38.5 40.4 41.7 6,031,864 10,925,259 17,296,536 15,644,291 29,049,338 36,785,013 25,025,071 26,413,442 29,240,672 32,463,221 Operating Margin % 9.1 5.0 Net Income KRW Mil 7,420,579 5,525,904 48924.00 37340.00 64585.99 105672.01 89146.00 153950.00 197800.00 153096.00 126303.00 157967.00 175277.00 8000.00 5000.00 8000.00 5000.00 5500.00 8000.00 13800.00 20000.00 21000.00 28500.00 28500.00 16.4 13.4 4.7 0.5 5.2 3.8 8.6 14.7 16.0 16.3 128 128 128 130 150 151 151 151 149 142 141 434.43 361.75 582.07 624.41 716.35 1005.53 957.50 1013.09 1024.07 1018.95 Earnings Per Share KRW Dividends KRW Payout Ratio % * Shares Mil Book Value Per Share * USD Operating Cash Flow KRW Mil Cap Spending KRW Mil Free Cash Flow KRW Mil Free Cash Flow Per Share * USD Working Capital KRW Mil 8.0 11.2 9.5 14.4 16.1 12.1 13.2 14.5 16.0 9,571,598 15,799,035 13,382,645 23,185,375 29,821,215 23,082,499 18,694,628 22,415,655 24,640,681 15,209,816 14,173,590 18,484,668 23,321,153 22,903,177 37,972,809 46,707,440 36,975,389 40,061,761 47,385,644 49,264,625 -12,251,537 -14,088,184 -8,622,218 -22,879,140 -22,629,356 -23,616,155 -24,092,330 -23,367,250 -27,382,103 -25,190,641 -29,176,956 2,958,279 85,406 9,862,451 442,014 24.67 0.53 3.02 273,821 14,356,654 22,615,110 13,608,139 12,679,658 22,195,003 20,087,669 -1.71 87.97 178.91 109.05 22.40 158.90 12,105,038 16,761,485 20,006,873 21,457,868 27,183,047 40,335,965 59,444,862 63,132,113 74,311,816 86,725,609 * Indicates calendar year-end data information Key Ratios Profitability Growth Margins % of Sales Revenue Cash Flow Financial Health Efficiency Ratios 2007-12 2008-12 2009-12 2010-12 2011-12 2012-12 2013-12 2014-12 2015-12 2016-12 TTM 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 COGS 71.95 74.00 69.39 66.40 67.97 62.98 60.21 62.21 61.54 59.58 58.26 Gross Margin 28.05 26.00 30.61 33.60 32.03 37.02 39.79 37.79 38.46 40.42 41.74 SG&A 7.28 5.11 8.54 8.90 11.04 11.53 11.94 11.97 11.46 6.17 5.82 5.42 5.88 6.03 5.73 6.26 6.98 6.83 6.99 7.06 12.76 14.51 10.34 12.04 7.98 7.94 6.41 7.15 6.52 6.97 7.19 Operating Margin 9.11 4.97 8.01 11.19 9.48 14.44 16.08 12.14 13.16 14.49 16.02 Net Int Inc & Other 0.67 0.45 0.93 1.31 0.94 0.43 0.69 1.38 -0.23 0.73 0.64 EBT Margin 9.78 5.42 8.94 12.50 10.42 14.88 16.78 13.52 12.94 15.21 16.66 2007-12 2008-12 2009-12 2010-12 2011-12 2012-12 2013-12 2014-12 2015-12 2016-12 TTM R&D Other Profitability Tax Rate % 17.75 10.45 19.94 16.46 19.96 20.29 20.56 16.07 26.58 26.01 25.47 Net Margin % 7.53 4.56 7.02 10.22 8.32 11.53 13.04 11.19 9.32 11.10 12.16 Asset Turnover (Average) 1.13 1.22 1.25 1.25 1.14 1.19 1.16 0.93 0.85 0.80 0.80 Return on Assets % 8.49 5.56 8.80 12.82 9.47 13.77 15.09 10.39 7.91 8.89 9.75 Financial Leverage (Average) 1.82 1.82 1.62 1.57 1.60 1.55 1.48 1.42 1.40 1.41 1.44 Return on Equity % 15.39 10.11 15.05 20.43 15.03 21.63 22.83 15.07 11.17 12.49 13.88 Return on Invested Capital % 12.50 7.86 12.61 18.10 13.15 18.64 20.19 13.41 9.93 11.14 12.52 Interest Coverage 17.31 10.81 23.78 34.26 27.64 108.80 121.14 48.01 46.77 88.50 104.00 Reference: SSNLF Income Statement | SAMSUNG ELECT LTD(F) Stock - Yahoo Finance. (2017). Finance.yahoo.com. Retrieved 18 August 2017, from https://finance.yahoo.com/quote/ SSNLF/financials?p=SSNLF http://financials.morningstar.com/ratios/r.html?ops=clear&t=SSNLF®ion=usa&culture=en-US 1/1