Chapter 18 Financial Statement Analysis Project

Overview of Assignment: You are required to work in groups for this assignment. I will not accept individual projects. Working in groups of 2 or 3, prepare a financial statement analysis on selected publically traded companies. Include a balance sheet, an income statement, and a statement of changes in stockholders? equity for the companies selected. Prepare a vertical analysis of the income statement only for each company represented in your group. Select one ratio from each category of ratios as noted below and prepare each ratio selected for each company represented. Include in your analysis the inputs used in the ratios. Do not just present final ratio results. If a particular ratio category is not applicable for a company selected, state that the ratio is not applicable and explain why. However, you should be choosing ratios that will work for the companies selected. Prepare a summary document detailing the results of your analysis, including information on your observations based on the results of your vertical analysis and ratio analysis. Include comparisons between the companies selected as part of your summary analysis. I expect this summary document to be approximately one page. Each group member should be represented by a separate company, i.e. if there are two individuals in your group, you should have two companies; if there are three individuals in your group, you should have three companies. Turn in one complete package with the deliverables noted below per group. This can be a paper document or an Excel document. The grade for each group member will be based on the complete package that is turned in.

Project Deliverables

Cover sheet listing each team member and companies selected.

Balance sheet, income statement, and stockholders? equity statement for each company selected.

Vertical analysis for each company selected for the most recent year.

Ratios prepared for each company selected with detail as to the calculations for the most recent year.

Summary results document.

Ratio Categories (see page 802 in your textbook for full listing of ratios to select from):

Liquidity Ratios

Profitability Ratios

Solvency Ratios

It looks great, but professor said she wanted the most recent year which is 2015. Also she only asked for a vertical analysis for the income statement. The link for the aapl 2015 financial statements ishttp://www.sec.gov/Archives/edgar/data/320193/000119312515356351/d17062d10k.htm#toc17062_26 and I think for the vertical analysis we'll need to use CONSOLIDATED STATEMENTS OF OPERATIONS. As for the ratios, I used: The Current Ratio, Profit Margin Ratio, and Debt to Assets Ratio. (The formulas are on pg. 802 of the textbook.) It looks like you did a lot of work, but I think there might have been a miscommunication on my part. I'm sorry. I talked to professor, and she said if we turn in the financial statements, vertical analyses, and ratios, she'll give us more time to do the summary.

I send this file to my partner, and this is her answer. Could somebody change the file follow my partner's massage?

Multi-Step Income Statement 2014 For the years ended December 31, 2012 2013 2010 2011 (In millions, except per share data) Sales from company operated resaurants 18,169.30 18,874.20 18,602.50 18,292.80 16,233.30 9,272.00 9,231.50 8,964.50 8,713.20 7,841.30 28,105.70 $ 27,567.00 $ 6,129.70 6,361.30 6,318.20 6,167.20 5,300.10 Payroll & employee benefits 4,756.00 4,824.10 4,710.30 4,606.30 4,121.40 Occupancy & other operating expenses 2,758.10 2,808.10 2,706.70 2,649.40 2,361.80 Franchised restaurants-occupancy expenses 1,697.30 1,624.40 1,527.00 1,481.50 1,377.80 Selling, general & administrative expenses 1,679.70 1,577.20 1,667.70 1,625.10 1,646.30 808.20 808.40 787.50 768.60 687.00 17,298.10 $ Revenues from Franchised restaurants Total Revenues $ 27,441.30 $ 27,006.00 $ 24,074.60 OPERATING EXPENSES Food & paper Advertising Expenses Total operating expenses $ 17,829.00 $ 18,003.50 $ 17,717.40 $ Earnings before Interest, Taxes, Dep/Amort (EBITDA) $ 9,612.30 $ 10,102.20 $ 9,849.60 $ Depreciation and Amortization 1,644.50 $ Net Operating Income (NOI) 7,967.80 1,585.10 $ 9,707.90 1,488.50 15,494.40 $ 8,580.20 1,415.00 8,292.90 1,276.20 8,517.10 $ 8,361.10 $ $ 7,304.00 137.40 199.40 151.50 81.80 79.40 (8.90) 78.20 143.50 178.00 164.30 (147.10) (30.40) (43.50) (26.90) (45.50) Other Income (Expense) Gains on sales of restaurant businesses Equity in earnings of unconsolidated affiliates Asset dispositions and other expense - Impairment and other charges (credits) Total other Income (Expense) Earnings Before Interest and Taxes (EBIT) $ $ Interest expense-net of capitalized interest of $14.7, $15.5 and $15.9 - (8.00) 3.90 (29.10) (18.60) $ 247.20 $ 243.50 $ 236.80 $ 169.10 8,764.30 $ 8,604.60 $ 521.90 516.60 7,949.20 $ 570.50 $ 7,473.10 492.80 450.90 8,088.00 $ 8,036.90 2,618.60 2,614.20 2,509.10 5,623.80 $ 5,473.80 $ 5,527.80 20.00 15.00 28.00 39.00 20.00 (20.00) (8.00) (9.00) (9.00) 2.00 (6.70) (44.90) (28.00) (54.70) (43.90) 4,757.80 $ 5,585.90 $ 5,464.80 $ 5,503.10 $ Income from Continuing Operations 4.86 5.63 5.42 5.36 4.66 Interest Income (Net) 0.02 0.02 0.03 0.04 0.02 Foreign currency and hedging activity (Net) (0.02) (0.01) (0.01) (0.01) 0.00 Other expense (Net) (0.01) (0.04) (0.03) (0.05) (0.04) 2,614.20 Income Taxes related to Continuing Operations $ Income from Continuing Operations $ $ 8,242.40 $ Earnings Before Taxes (EBT) 7,378.70 8,529.70 4,764.50 $ $ 7,022.20 2,054.00 $ 4,968.20 Items Shown Net of Tax: Interest income (Net) Foreign currency and hedging activity (Net) Other expense (Net) $ Net Income 4,946.30 Earnings Per Share Common - Basic $ 4.85 $ 5.59 Income from Continuing Operations 4.83 5.59 5.37 5.29 4.60 Interest Income (Net) 0.02 0.01 0.03 0.04 0.02 Foreign currency and hedging activity (Net) (0.02) (0.01) (0.01) (0.01) 0.00 Other expense (Net) (0.01) (0.04) (0.03) (0.05) (0.04) Net Income Per Share $ 5.41 $ 5.33 $ 4.64 Diluted Earnings Per Common Share - Basic Net Income per share $ 4.82 $ 5.55 $ 5.36 $ 5.27 $ 4.58 Weighted-average shares outstanding-basic 980.5 998.4 1,010.10 1,032.10 1,066.00 Weighted-average shares outstanding-diluted 986.3 1,006.00 1,020.20 1,044.90 1,080.30 Fiscal Year (Amounts In Millions $) Dec 31 2010 Dec 31 2011 Dec 31 2012 Dec 31 2013 Dec 31 2014 ASSETS Current Assets Cash and equivalents $2,387.00 Accounts and notes receivable $2,335.70 $2,336.10 $2,798.70 $2,077.90 1179.1 1334.7 1375.3 1319.8 1214.4 Inventories ,at cost 109.9 116.8 121.7 123.7 110 Prepaid expenses & other current assets 692.5 615.8 1089 807.9 783.2 4368.5 4403 4922.1 5050.1 4185.5 Investments in & advances to affiliates 1335.3 1427 1380.5 1209.1 1004.5 Goodwill 2586.1 2653.2 2804 2872.7 2735.3 Miscellaneous 1624.7 1672.2 1602.7 1747.1 1798.6 5,546.10 5,752.40 5,787.20 5,828.90 5,538.40 34,482.40 35737.6 38491.1 40,355.60 39126.1 -12,421.80 -12,903.10 -13813.9 -14608.3 -14568.6 22060.6 22834.5 24677.2 25747.3 24557.5 35,386.50 36,626.30 34,281.40 Total Current Assets Other Assets Total Other Assets Property &Equipment Property and equipment at cost Accumulated depreciation& amortization Net Property and Equipment TOTAL ASSETS $31,975.20 $32,989.90 Current liabilities Accounts payable 943.9 961.3 1141.9 1086 860.1 Income taxes 111.3 262.2 298.7 215.5 166.8 Other taxes 275.6 338.1 370.7 383.1 330 Accrued interest 200.7 218.2 217 221.6 233.7 1384.9 1362.8 1374.8 1263.8 1157.3 2924.7 3509.2 3403.1 3170 2747.9 11497 12133.8 13632.5 14129.8 14989.7 Other long term liabilities 1586.9 1612.6 1526.2 1669.1 2065.9 Deferred income taxes 1332.4 1344.1 1531.1 1647.7 1624.7 Accrued payroll &other liabilities Total current liabilities $ Long term debt SHAREHOLDERS' EQUITY Pref. stock no par value ,165mil, authorized; i Common stock,$0.1 par value; authorized -3.5 b - - - - 16.6 16.6 16.6 16.6 16.6 5196.4 5487.3 5778.9 5994.1 6239.1 33811.7 36707.5 39278 41751.2 43294.5 752.9 449.7 796.4 427.6 -1519.7 Common stock in treasury at cost;670.2 and 65 -25143.4 -28,270.90 -30576.3 -32179.8 -35177.1 Total Shareholders' Equity 14634.2 14390.2 15293.6 16009.7 12853.4 31,975.20 32,989.90 35,386.50 36,626.30 34,281.40 Additional paid in capital Retained earnings Accumulated other comprehensive income TOTAL LIABILITY & SHAREHOLDERS'$ EQ Fiscal Year (Amounts In Millions $) Dec 31 2010 Dec 31 2011 Dec 31 2012 Dec 31 2013 Dec 31 2014 OPERATING ACTIVITIES Net income 4946.3 5503.1 5464.8 5585.9 4757.8 1276.2 1415 1488.5 1585.1 1644.5 -75.7 188.4 134.5 25.2 -90.7 Share based compensation 29.1 86.2 93.4 89.1 112.8 Other 83.1 82.6 -92 26.8 369.5 Accounts Receivable -50.1 -160.8 -29.4 56.2 27 Inventories, prepaid expenses and other current assets -50.8 -52.2 -27.2 -44.4 -4.9 Accounts payable -39.8 35.8 124.1 -60.7 -74.7 54.9 198.5 -74 -154.4 3.3 -43.2 18.7 -116.6 11.9 -14.3 6341.6 7150.1 6966.1 7120.7 6730.3 -2135.5 -2824.7 -3049.2 -2824.7 -2824.7 -158.5 -181 -170.5 377.9 (39 682) 394.7 440.1 489.9 -115 (1 178) -354.3 -108.2 -40.9 CHARGES AND CREDITS: Depreciation & amortization Deferred income taxes Changes in working capital items: Income taxes Other accrued liabilities Cash provided by operations INVESTING ACTIVITIES Capital expenditures Purchase of restaurant businesses Sale of restaurant bsn & property Other Cash used for investing activities -183.4 18 497 -2056 2570.9 -3167.3 -2673.8 -2304.9 3.1 260.6 -117.5 -186.5 510.4 1931.8 1367.3 2284.9 1417.2 1540.6 Long term financial repayments -1147.5 -624 -962.8 -695.4 -548.1 Treasury stock purchases -2698.5 -3363.1 -2615.1 -1777.8 -3198.6 Common stock dividends -2408.1 -2609.7 -2896.6 -3114.6 3216.1 Proceeds from stock option exercises 463.1 334 328.6 233.3 235.4 Excess tax benefits on share-based compensation 128.7 112.5 142.3 92.6 70.9 -1.3 -10.6 -13.6 -11.8 -12.8 -3728.7 -4553 -3849.8 -4043 -4618.3 34.1 -97.5 51.4 58.7 -527.9 591 -51.3 0.4 462.6 -720.8 Cash and equivalent at the beg. of the year 1796 2387 2335.7 2336.1 2798.7 Cash and cash equivalent at end of year 2387 2335.7 2336.1 2798.7 2077.9 457.9 489.3 533.7 532.7 573.2 1708.5 2056.7 2447.8 2546 2388.3 FINANCING ACTIVITIES Net short-term borrowings Long term financial issuances Other Cash used for financing activities Effect of exchange rates on cash and equivalents Cash and equivalents increase Supplementary cash flow disclosures: Interest paid Income taxes paid Consolidated Statement of Shareholders Equity ($) Total Common stock Additional paid- etained earnings R Pensions Cash flow hedgesForeign currencCommon stock in treasur In Millions Beginning Balance at Dec. 31, 2011 14,390.20 Beginning Balance (in shares) at Dec. 31, 2011 Net income Other comprehensive income (loss), net of tax Comprehensive income Common stock cash dividends 16.6 5,487.30 36,707.50 -132.3 4.6 577.4 1,660.60 -639.2 5,464.80 5,464.80 346.7 41.5 30.6 274.6 5,811.50 -2,896.60 -2,896.60 Treasury stock purchases (in shares) Treasury stock purchases Share-based compensation -28.1 -2,605.40 -2,605.40 93.4 93.4 Stock option exercises and other (including tax benefits of $150.8m in 2012, $93.6m in 2013, $70.2m in 2014) (in shares) Stock option exercises and other (including tax benefits of $ Ending Balance at Dec. 31, 2012 9.4 500.5 15,293.60 Ending Balance (in shares) at Dec. 31, 2012 Net income Other comprehensive income (loss), net of tax Comprehensive income Common stock cash dividends 198.2 16.6 2.3 5,778.90 39,278.00 300 -90.8 35.2 852 1,660.60 Share-based exercises and other (including tax benefits of Stock option compensation $150.8m in 2012, $93.6m in 2013, $70.2m in 2014) (in shares) Stock option exercises and other (including tax benefits of $ Ending Balance at Dec. 31, 2013 5,585.90 5,585.90 -368.8 -51.9 -37.5 -279.4 5,217.10 -3,114.60 -3,114.60 -18.7 -1,810.50 Other comprehensive income (loss), net of tax Comprehensive income Common stock cash dividends -1,810.50 89.1 89.1 6.4 335 16,009.70 Ending Balance (in shares) at Dec. 31, 2013 Net income 126.1 16.6 1.9 5,994.10 41,751.20 207 -142.7 -2.3 572.6 1,660.60 4,757.80 4,757.80 -1,947.30 -24.2 33.3 -1,956.40 2,810.50 -3,216.10 -3,216.10 -33.1 -3,175.30 Share-based exercises and other (including tax benefits of Stock option compensation $150.8m in 2012, $93.6m in 2013, $70.2m in 2014) (in shares) Stock option exercises and other (including tax benefits of $ -3,175.30 112.8 311.8 Ending Balance at Dec. 31, 2014 Ending Balance (in shares) at Dec. 31, 2014 -32,179.80 -670.2 Treasury stock purchases (in shares) Treasury stock purchases -30,576.30 -657.9 Treasury stock purchases (in shares) Treasury stock purchases -28270.9 112.8 5.6 12,853.40 132.2 16.6 1,660.60 1.6 6,239.10 43,294.50 178 -166.9 31 -1,383.80 -35,177.10 -697.7 ury APPLE INC CONSOLIDATED BALANCE SHEETS (RESTATED) ($ and shares in millions except par value) Dec 31 2014 Dec 31 2013 Dec 31 2012 Dec 31 2011 Dec 31 2010 ASSETS Current assets: Cash and cash equivalents $ 2077.9 2798.7 2336.1 2335.7 2387 1214.4 1319.8 1375.3 1334.7 1179.1 110 123.7 121.7 116.8 1109.9 783.2 807.9 1089 615.8 692.5 4,185.50 5,050.10 4922.1 4403 4368.5 Property and equipment, at cost 39126.1 40,355.60 38491.1 35737.6 34482.4 Less: Accumulated depreciation 14568.6 14,608.30 13813.9 12903.1 12421.8 Property and equipment - net 24,557.50 25,747.30 24677.2 22834.5 22060.6 24,557.50 25,747.30 24677.2 22834.5 22060.6 Goodwill 2735.3 2,872.70 2804 2653.2 2586.1 Long-term income tax-related investment 1004.5 1,209.10 1380.5 1427 1335.3 Other assets 1798.6 1,747.10 1602.7 1672.2 1624.7 Total Intangible and Other Assets 5,538.40 5,828.90 5787.2 5752.4 5546.1 Total Non-Current Assets 30095.4 31,576.20 30,464.40 28,586.90 27,606.70 34,281.40 36,626.30 35,386.50 32,989.90 31,975.20 860.1 1086 1,141.90 961.3 943.9 1157.3 1263.8 1374.8 1362.8 1384.9 Income taxes payable 166.8 215.5 298.7 262.2 111.3 Accrued interest 233.7 221.6 217 218.2 200.7 330 383.1 370.7 338.1 275.6 2747.9 3170 3403.1 3509.2 2924.7 14989.7 14129.8 13632.5 12133.8 11497 1624.7 1647.7 1531.1 1344.1 1332.4 2065.9 1669.1 1526.2 1612.6 1586.9 Total Long-Term Liabilities 18680.3 17446.6 16689.8 15090.5 14416.3 Total Liabilities 21428.2 20616.6 20092.9 18599.7 17341 16.6 16.6 16.6 16.6 16.6 6239.1 5994.1 5778.9 5487.3 5196.4 Retained earnings 43294.5 41751.2 39278 36707.5 33811.7 Accumulated other comprehensive income -1519.7 427.6 796.4 449.7 752.9 Treasury stock at cost -35177.1 -32179.8 -30576.3 -28270.9 -25143.4 Total Stockholders' Equity 12853.2 16009.7 15293.6 14390.2 14634.2 34281.4 36626.3 35386.5 32989.9 31975.2 Account & Notes Receivable Merchandise inventory Prep. expenses & other current assets Total Current Assets Tangible Assets Total Tangible Assets Intangible Assets Total Assets $ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued payroll and other current liabilities Other taxes Total Current Liabilities Long-term liabilities: Long-term debt Long-term income tax-related liabilities Other long-term liabilities Stockholders' equity: Common stock $0.1 par value Authorized 3.5 billion shares presented Additional paid-in capital Total liabilities and stockholders' equity $ MCD RESTATED IS Fiscal Year For the years ended December 31, (In millions $, except per share dat 2014 2013 2012 2011 2010 SALES REVENUE Sales from company operated resaurants 18169.3 18874.2 18602.5 18292.8 16233.3 9272 9231.5 8964.5 8713.2 7841.3 27441.3 28105.7 27567 27006 24074.6 6129.7 6361.3 6318.2 6167.2 5300.1 4756 4824.1 4710.3 4606.3 4121.4 Occupancy & other operating expenses 2758.1 2808.1 2706.7 2649.4 2361.8 Franchised restaurants-occupancy expenses 1697.3 1624.4 1527 1481.5 1377.8 Selling, general & administrative expenses 1679.7 1577.2 1667.7 1625.1 1646.3 808.2 808.4 787.5 768.6 687 17829 18003.5 17717.4 17298.1 15494.4 9612.3 10102.2 9849.6 9707.9 8580.2 Depreciation and Amortization 1644.5 1585.1 1488.5 1415 1276.2 Net Operating Income (NOI) 7967.8 8517.1 8361.1 8292.9 7304 137.4 199.4 151.5 81.8 79.4 -8.9 78.2 143.5 178 164.3 -147.1 -30.4 -43.5 -26.9 -45.5 0 0 -8 3.9 -29.1 -18.6 247.2 243.5 236.8 169.1 7949.2 8764.3 8604.6 8529.7 7473.1 570.5 521.9 516.6 492.8 450.9 7378.7 8242.4 8088 8036.9 7022.2 Income Taxes related to Continuing Operations 2614.2 2618.6 2614.2 2509.1 2054 Income from Continuing Operations 4764.5 5623.8 5473.8 5527.8 4968.2 20 15 28 39 20 -20 -8 -9 -9 2 -6.7 -44.9 -28 -54.7 -43.9 4757.8 5585.9 5464.8 5503.1 4946.3 Revenues from Franchised restaurants Total Revenues OPERATING EXPENSES Food & paper Payroll & employee benefits Advertising Expenses Total operating expenses Earnings before Interest, Taxes, Dep/Amort (EBITDA) Other Income (Expense) Gains on sales of restaurant businesses Equity in earnings of unconsolidated affiliates Asset dispositions and other expense Impairment and other charges (credits) Total other Income (Expense) Earnings Before Interest and Taxes (EBIT) Interest expense-net of capitalized interest of $14.7, $15.5 and $15.9 Earnings Before Taxes (EBT) Items Shown Net of Tax: Interest income (Net) Foreign currency and hedging activity (Net) Other expense (Net) Net Income Earnings Per Share Common - Basic Income from Continuing Operations 4.86 5.63 5.42 5.36 4.66 Interest Income (Net) 0.02 0.02 0.03 0.04 0.02 Foreign currency and hedging activity (Net) (0.02) (0.01) (0.01) (0.01) 0.00 Other expense (Net) (0.01) (0.04) (0.03) (0.05) (0.04) 4.85 $ 5.59 Income from Continuing Operations 4.83 5.59 5.37 5.29 4.60 Interest Income (Net) 0.02 0.01 0.03 0.04 0.02 Foreign currency and hedging activity (Net) (0.02) (0.01) (0.01) (0.01) 0.00 Other expense (Net) (0.01) (0.04) (0.03) (0.05) (0.04) Net Income Per Share $ $ 5.41 $ 5.33 $ 4.64 Diluted Earnings Per Common Share - Basic Net Income per share $ 4.82 $ 5.55 $ 5.36 $ 5.27 $ 4.58 Weighted-average shares outstanding-basic 980.5 998.4 1,010.10 1,032.10 1,066.00 Weighted-average shares outstanding-diluted 986.3 1,006.00 1,020.20 1,044.90 1,080.30 APPLE INC CONSOLIDATED STATEMENT OF CASH FLOWS (RESTATED) ($ and shares in millions except par value) Dec 31 2014 Dec 31 2013 Dec 31 2012 Dec 31 2011 Dec 31 2010 OPERATING ACTIVITIES Net income $ 4757.8 5585.9 5464.8 5503.1 4946.3 1644.5 1585.1 1488.5 1415 1276.2 Deferred income taxes -90.7 25.2 134.5 188.4 -75.7 Share based compensation 112.8 89.1 93.4 86.2 83.1 Other 369.5 26.8 -92 82.6 211.6 27 56.2 -29.4 -160.8 -50.1 -4.9 -44.4 -27.2 -52.2 -50.8 -74.7 -60.7 124.1 35.8 -39.8 3.3 -154.4 -74 198.5 54.9 -14.3 11.9 -116.6 18.7 -43.2 6730.3 7120.7 6966.1 7150.1 6341.6 -2824.7 -2824.7 -3049.2 -2824.7 -2135.5 Purchase of restaurant businesses -170.5 -181 Sale of restaurant bsn & property 489.9 440.1 Other -40.9 -108.2 -2304.9 -2673.8 -3167.3 2570.9 -2056 510.4 -186.5 -117.5 260.6 3.1 Long term financial issuances 1540.6 1417.2 2284.9 1367.3 1931.8 Long term financial repayments -548.1 -695.4 -962.8 -624 -1147.5 Treasury stock purchases -3198.6 -1777.8 -2615.1 -3363.1 -2698.5 Common stock dividends 3216.1 -3114.6 -2896.6 -2609.7 -2408.1 235.4 233.3 328.6 334 463.1 70.9 92.6 142.3 112.5 128.7 -12.8 -11.8 -13.6 -10.6 -1.3 -4618.3 -4043 -3849.8 -4553 -3728.7 Effect of exchange rates on cash -527.9 58.7 51.4 -97.5 34.1 Cash and equivalents increase -720.8 462.6 0.4 -51.3 591 Cash and equivalent at the beginning of the year 2798.7 2336.1 2335.7 2387 1796 Cash & cash equivalent at end of year 2077.9 2798.7 2336.1 2335.7 2387 CHARGES AND CREDITS: Depreciation & amortization CHANGES IN WORKING CAPITAL: Accounts Receivable Inventories, prepaid expenses and other current assets Accounts payable Income taxes Other accrued liabilities Cash provided by operations INVESTING ACTIVITIES Capital expenditures Cash used for investing activities -158.5 18 497 -183.4 394.7 (39 682) 377.9 -354.3 (1 178) -115 FINANCING ACTIVITIES Net short-term borrowings Proceeds from stock option exercises Excess tax benefits on share-based compensation Other Cash used for financing activities Supplementary Disclosures Fiscal Year $ Dec 31 2014 Dec 31 2013 Dec 31 2012 Dec 31 2011 Dec 31 2010 Supplementary cash flow disclosures: Interest paid $ 573.2 532.7 533.7 489.3 457.9 Income taxes paid $ 2388.3 2546 2447.8 2056.7 1708.5 HORIZONTAL ANALYSIS APPLE INC . (HORIZONTAL) COMMON-SIZED CONSOLIDATED BALANCE SHEETS ($ and shares in millions except par value) ASSETS Current assets: Cash and cash equivalents Account Receivable Merchandise inventory Other current assets Total Current Assets Tangible Assets Property and equipment, at cost Less: Accumulated depreciation Property and equipment - net Total Tangible Assets Intangible Assets Goodwill Long-term income tax-related assets Other assets Total Intangible and Other Assets Total Non-Current Assets Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other current liabilities Income taxes payable Accrued interest Other taxes Total Current Liabilities Long-term liabilities: Long-term debt Long-term income tax-related liabilities Other long-term liabilities Total Long-Term Liabilities Total Liabilities Stockholders' equity: Common stock $0.1 par value Authorized 3.5 Billion shares presented Additional paid-in capital Retained earnings Accumulated other comprehensive income Treasury stock at cost Total Stockholders' Equity Total liabilities and stockholders' equity Dec 31 2014 Dec 31 2013 Dec 31 2012 Dec 31 2011 Dec 31 2010 -34.70% 8.00% -11.10% -3.10% -17.10% 19.80% -4.00% 1.60% -25.80% 2.60% -0.02% 3.00% 4.20% 76.80% 11.80% -2.10% 13.20% 6.30% -11.10% -0.80% NA NA NA NA NA -3.00% -0.30% -4.60% -4.60% 3.10% 5.80% 4.30% 4.30% 1.60% -7.10% 8.10% 8.10% 2.80% 3.90% 3.50% 3.50% NA NA NA NA -4.80% -16.90% 2.90% -5.00% -4.70% -6.40% 2.50% -12.40% 9.00% 0.70% 3.50% 3.50% 5.70% -3.30% 4.20% 0.60% 6.60% 7.30% 2.60% 6.90% 2.90% 3.70% 3.60% 3.20% NA NA NA NA NA NA -20.80% -8.40% -22.60% 5.50% -13.90% -13.30% -4.90% 8.10% -27.90% 2.10% 3.30% -7.40% 18.80% 0.80% 13.90% -0.50% 8.80% -3.00% 1.80% -1.60% 135.60% 8.70% 22.70% 20.00% NA NA NA NA NA NA 6.10% 1.40% 23.80% 7.10% 3.90% 3.60% 7.60% 9.40% 4.50% 2.60% 12.40% 13.90% 5.40% 10.60% 8.00% 0.80% 1.60% 4.70% 7.30% NA NA NA NA NA 0.00% 4.10% 3.70% 455.40% -9.30% -19.70% -6.40% 0.00% 3.70% 6.30% -46.30% -5.20% 4.70% 3.50% 0.00% 5.30% 7.00% 77.00% -8.20% 6.30% 7.30% 0.00% 5.60% 8.60% -40.30% -12.40% -1.70% 3.20% NA NA NA NA NA NA NA 5.50% APPLE INC (HORIZONTAL) COMMON-SIZED CONSOLIDATED STATEMENT OF INCOME ($ and shares in millions except per share amounts) Fiscal Year DEC 31 2014 DEC 31 2013 DEC 31 2012 DEC 31 2011 DEC 31 2010 Sales revenues: Sales by company operated restaurants -3.70% 1.50% 1.70% 12.70% NA 0.40% 3.00% 2.90% 11.10% NA -2.40% 2.00% 2.10% 12.20% NA 0.80% 2.00% 2.60% 11.30% NA Operating Income -9.30% 1.90% 0.90% 14.10% NA Interest expense 10.40% 1.00% 4.80% 9.30% NA Interest Income -97.90% 321.10% -63.60% 12.80% NA Income before provision for income taxes -10.10% 1.60% 0.80% 14.50% NA -0.20% 0.20% 4.20% 22.20% NA -14.80% 2.20% -0.70% 11.30% NA -2.00% -1.40% -2.40% -3.30% NA -13.20% 3.50% 1.70% 15.10% NA Sales from franchised restaurants Total Revenues Operating costs and expenses Provision for income taxes Net income Weighted-average number of sharesdiluted Earnings per sharediluted A A A APPLE INC (VERTICAL) COMMON-SIZED CONSOLIDATED BALANCE SHEETS Dec 31, Dec 31, Dec 31, 2014 2013 2012 ($ and shares in millions except par value) ASSETS Current assets: Cash and cash equivalents Account & Notes Receivable Merchandise inventory Prep. expenses & other current assets Total Current Assets Tangible Assets Property and equipment, at cost Less: Accumulated depreciation Property and equipment - net Total Tangible Assets Intangible Assets Goodwill Long-term income tax-related investment Other assets Total Intangible and Other Assets Total Non-Current Assets Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued payroll and other current liabilities Income taxes payable Accrued interest Other taxes Total Current Liabilities Long-term liabilities: Long-term debt Long-term income tax-related liabilities Other long-term liabilities Total Long-Term Liabilities Total Liabilities Stockholders' equity: Common stock $0.1 par value Authorized 3.5 billion shares presented Additional paid-in capital Retained earnings Accumulated other comprehensive income Treasury stock at cost Total Stockholders' Equity Total liabilities and stockholders' equity $ Dec 31, Dec 31, 2011 2010 7.60% 3.60% 0.30% 2.20% 13.80% 6.60% 3.90% 0.30% 3.10% 13.90% 114.10% 42.50% 71.60% 71.60% 110.20% 39.90% 70.30% 70.30% 108.80% 39.00% 69.70% 69.70% 8.00% 2.90% 5.20% 16.20% $ 6.10% 3.50% 0.30% 2.30% 12.20% 7.80% 3.30% 4.80% 15.90% 7.90% 3.90% 4.50% 16.40% 8.00% 4.30% 5.10% 17.40% 8.10% 4.20% 5.10% 17.30% 86.20% 86.10% 100% 86.70% 83.10% 87.80% 100% 100% 2.50% 3.40% 0.50% 0.70% 1.00% 8.00% 7.50% 3.70% 3.50% 2.20% 13.30% 16.90% 108.30% 39.10% 69.20% 69.20% 107.80% 100% 38.90% 70.00% 70.00% 100% 3.50% 0.60% 0.60% 1.00% 8.70% 3.20% 3.90% 0.80% 0.60% 1.00% 9.60% 2.90% 4.10% 0.80% 0.70% 1.00% 10.60% 3.00% 4.30% 0.30% 0.60% 0.90% 9.10% 43.70% 4.70% 6.00% 54.50% 62.50% $ 3.00% 7.10% 4.00% 0.40% 1.90% 38.60% 4.50% 4.60% 47.60% 56.30% 38.50% 4.30% 4.30% 47.20% 56.80% 36.80% 4.10% 4.90% 45.70% 56.40% 36.00% 4.20% 5.00% 45.00% 54.20% 0.10% 18.20% 126.30% 4.40% 102.60% 37.50% 34281.4 0.10% 16.40% 114.00% 1.20% 87.90% 43.70% 100% 0.10% 16.30% 111.00% 2.30% 0.10% 16.60% 111.30% 1.40% 85.70% 43.60% 100% 0.10% 16.30% 105.70% 2.40% 78.60% 45.80% 100% 86.40% 43.20% 100% APPLE INC (VERTICAL) COMMON-SIZED CONSOLIDATED INCOME STATEMENT Fiscal Year ($ and shares in millio 2014 2013 2012 2011 2010 Sales by co $ 66.20% 67.20% 67.50% 67.70% 67.40% Sales from franchised r 33.80% 32.80% 32.50% 32.30% 32.60% 100% 100% 100% 100% 100% Operating costs and e 71.00% 68.80% 68.80% 68.40% 69.00% Operating income 29.00% 31.20% 31.20% 31.60% 31.00% Interest expense 2.10% 1.90% 1.90% 1.80% 1.90% Interest income 0.00% 0.10% 0.03% 0.09% 0.09 26.90% 29.20% 29.30% 29.70% 29.10% 9.50% 9.30% 9.50% 9.30% 8.50% 17.30% 19.90% 19.80% 20.40% 20.50% Weighted-average numb 3.60% 3.60% 3.70% 3.90% 4.50% Earnings pe$ 0.02% 0.02% 0.02% 0.02% 0.02% Sales revenues: Total Revenues Income before provision Provision for income t Net income $ Times Interest Earned Ratio TIE = Net Operating Income / Interest Expense Debt Ratio Debt Ratio = Total Liabilities / Total Assets Liabilities to Equity Ratio Liabilities to Equity Ratio = Total Liabilities / Total Equity 2014 2013 2012 2011 12.8 15.7 15.6 16.3 10.4 10.5 10.7 9.9 11.2 11.7 13.0 12.2 10.2 9.4 9.6 8.9 2010 2014 2013 2012 2011 15.8 63.0% 56.0% 57.0% 56.0% 10.5 78.4% 78.3% 77.8% 75.9% 9.1 81.0% 77.0% 79.0% 76.0% 9.2 68.0% 79.0% 78.0% 78.7% 2010 2014 2013 2012 2011 53.0% 1.7 1.3 1.3 1.3 73.3% 3.5 3.3 3.4 3.3 70.0% 4.2 3.8 4.0 3.6 77.0% 3.5 3.8 3.8 3.7 2010 1.4 3.3 3.3 3.9 Huawei Techno Motorol Nokia Samsun Industr y Averag e Apple In Fiscal Year ebt Paying Ability Ratios & Formulas 7.8 9.3 7.9 8.1 12.5 11.6 12.2 10.4 9.7 10.6 11.9 14.2 9.8 90.0% 85.3% 78.2% 75.2% 14.4 74.5% 72.0% 76.1% 73.7% 10.1 72.1% 72.0% 66.5% 61.4% 76.0% 3.4 2.8 2.9 3.0 72.0% 2.7 2.9 2.8 3.0 71.3% 3.1 2.5 2.8 3.0 2.8 3.6 2.7 Huawei Techno Motoro Nokia Samsu Industr y Averag e Apple In Fiscal Year Profitability/Investor Ratios & Formulas 34.9% 39.5% 41.0% 40.8% 43.0% 40.0% 40.3% 42.0% 28.5% 26.0% 28.4% 27.2% 30.0% 31.0% 25.8% 27.2% 20.0% 29.8% 9.6% 41.0% 40.7% 27.9% 24.0% 2014 2013 2012 2011 13.1% 12.8% 12.4% 10.4% 10.6% 10.2% 10.7% 11.0% 9.4% 10.1% 10.5% 11.2% 10.1% 11.1% 11.4% 11.9% 10.7% 8.6% 9.1% 10.3% 12.1% 10.9% 11.8% 10.5% 12.3% 12.6% 11.5% 10.9% 13.6% 10.6% 12.4% 12.0% 7.8% 10.0% 11.3% 2014 2013 2012 2011 8.7% 7.9% 6.3% 10.1% 5.4% 5.8% 6.0% 6.3% 5.5% 5.1% 6.5% 7.9% 5.1% 6.0% 6.3% 6.7% 4.5% 5.2% 4.8% 4.9% 6.6% 6.8% 6.4% 5.5% 9.7% 8.4% 8.1% 7.9% 8.4% 6.0% 8.0% 5,8% 3.9% 6.1% 9.3% 2014 2013 2012 2011 2.4 2.4 2.1 2.0 1.7 1.6 1.6 1.7 1.9 2.0 1.7 1.8 1.5 1.3 1.3 1.4 1.4 1.3 1.6 1.7 1.8 1.7 1.9 1.8 2.1% 1.9% 2.0% 1.4% 2010 Total Asset Turnover Total Asset TO = Sales / Average Total Assets 8.0% 9.2% 11.4% 10.1% 2010 Net Profit Margin NPM = Net Income / Net Sales 28.6% 28.7% 30.3% 30.0% 2010 Operating Profit Margin OPM = Net Operating Income / Net Sales 17.3% 19.9% 19.8% 20.0% 2010 Gross Profit Margin GPM = Gross Profit / Net Sales 2014 2013 2012 2011 2.2 1.6 1.9 1.4 1.5 1.7 1.6% 20.9% 19.0% 13.2% 20.2% 9.1% 9.1% 9.8% 10.5% 10.5% 10.2% 11.1% 14.2% 7.7% 7.8% 8.2% 9.4% 6.3% 6.8% 7.7% 8.3% 11.9% 11.6% 12.2% 9.9% 20.4% 16.0% 16.2% 11.1% 2010 DuPont Return on Assets DuPont ROA = NPM x Total Asset TO 2014 2013 2012 2011 18.5% 9.9% 15.2% 8.1% 5.9% 10.4% 14.9% DuPont Return on Equity DuPont ROE = DuPont ROA x FLR 2.6 2.6 2.6 2.7 3.9 3.8 3.9 3.9 3.1 3.1 3.0 2.8 4.6 4.8 4.9 4.7 4.3 3.8 3.8 4.0 3.8 3.6 3.8 4.0 2.9% 2.6% 3.0% 3.4% 2010 Financial Leverage Ratio FLR = Total Assets / Total Equity 2014 2013 2012 2011 2.5 3.7 3.1 4.5 4.1 3.7 2.8% 2014 2013 2012 2011 53.8% 48.6% 34.1% 54.4% 34.8% 34.0% 37.1% 39.2% 31.9% 31.3% 33.0% 39.9% 35.2% 37.4% 40.1% 44.1% 27.1% 25.7% 29.2% 33.3% 45.1% 41.6% 46.2% 39.6% 59.2% 47.4% 48.6% 37.7% 2010 46.2% 36.6% 47.1% 36.5% 24.0% 38.4% 36.3% Huawei Techno motoro nokia Samsu Industr y Averag e Apple In Fiscal Year Liquidity Ratios & Formulas Accounts Receivable Turnover in Days 2014 2013 2012 2011 8.1 8.9 7.7 6.5 6.5 6.4 6.2 6.5 9.8 10.4 9.6 10.0 11.2 11.0 10.7 11.5 5.5 5.3 4.8 4.9 2.9 2.9 3.0 3.2 4.9 3.8 3.0 4.5 Accounts Receivable Turnover 2010 2014 2013 2012 2011 7.0 45.2 41.0 47.3 56.4 6.7 88.6 87.2 89.4 85.5 9.5 54.0 49.0 49.9 50.0 11.4 73.0 65.7 72.0 67.0 4.6 65.2 69.1 74.9 74.8 3.5 127.6 126.7 121.2 114.7 4.7 127.6 126.7 121.2 114.7 2010 2014 2013 2012 2011 48.6 68.7 68.3 64.9 63.7 82.9 89.6 89.3 84.6 82.9 48.0 115.9 114.8 102.8 96.2 66.0 70.9 68.2 61.6 58.8 76.0 117.2 118.6 115.0 114.5 112.3 54.3 55.7 58.8 61.9 112.3 64.2 57.9 58.3 54.1 2010 2014 2013 2012 2011 62.6 5.3 5.3 5.6 5.7 78.8 4.5 4.5 4.7 4.8 100.2 3.1 3.2 3.6 3.8 59.2 5.2 5.4 5.9 6.2 116.7 3.0 3.1 3.2 3.2 63.0 6.7 6.6 6.2 5.9 55.0 5.6 6.8 5.7 6.2 2010 5.4 4.6 3.6 5.6 3.3 6.0 6.4 2014 1.5 1.4 0.7 1.8 1.9 1.4 1.2 2013 2012 2011 1.5 1.6 1.5 1.4 1.5 1.4 0.8 0.7 0.7 2.0 2.2 2.1 1.8 1.8 1.6 1.4 1.3 1.3 1.1 1.4 1.6 2010 2014 2013 2012 2011 1.3 1.6 1.7 1.5 1.5 1.5 0.7 0.8 0.8 0.9 0.9 0.4 0.5 0.4 0.6 2.5 1.2 1.4 1.6 1.7 1.4 0.6 0.5 0.5 0.6 1.3 0.7 0.7 0.6 0.8 1.5 0.9 0.7 0.5 0.6 2010 2014 2013 2012 2011 1.4 0.8 0.9 0.7 0.7 1.0 0.4 0.4 0.4 0.5 0.9 0.2 0.3 0.2 0.4 2.0 0.3 0.4 0.6 0.7 0.4 0.4 0.4 0.3 0.4 0.6 0.6 0.5 0.4 0.4 0.5 0.7 0.5 0.3 0.4 2010 0.7 0.6 0.8 0.8 0.3 0.5 0.7 AR TO in Days = 365 / AR TO AR TO = Net Sales / Avg Gross Receivables Inventory Turnover in Days ITO in Days = 365 / ITO Inventory Turnover ITO = COGS / Avg Inventory Current Ratio Current Ratio = Current Assets / Current Liabilities Quick Ratio Quick Ratio = (Current Assets Inventory) / Current Liabilities Cash Ratio Cash Ratio = (Cash + Cash Equivalents) / Current Liabilities