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Each student should select a publicly traded multinational company that is headquartered in the US ( APPLE ) You are to prepare an analysis of
- Each student should select a publicly traded multinational company that is headquartered in the US ( APPLE ) You are to prepare an analysis of where your company is now and what the outlook is. Discuss potential strengths and weaknesses, and what actions should be taken to maintain or regain its financial health. You should compare your firms performance to its industry, and its biggest competitor ( SAMSUNG ). You may use whatever source of data you want for the calculations, but they should all be from the same source so that the results are comparable. Indicate the source of your data at the end of your memo.
- First, calculate the liquidity ratios (current ratio and quick ratio) for each firm for the last three years. Put your results in a table format in your appendices and discuss in your memo.
- Second, calculate asset management ratios (inventory turnover ratio, DSO, fixed asset turnover ratio, and total assets turnover ratio) for each firm for the last three years. Put your results in a table format in your appendices and discuss in your memo.
- Third, calculate debt management ratios (debt ratio, debt to equity ratio, market debt ratio, times interest earned ratio, and EBITDA) for each firm for the last three years. Put your results in a table format in your appendices and discuss in your memo.
- Fourth, calculate profitability ratios (net profit margin, operating profit margin, gross profit margin, basic earnings power, return on assets, and return on common equity) for each firm for the last three years. Put your results in a table format in your appendices and discuss in your memo.
- Fifth, calculate market value ratios (price/earnings, price/cash flow, and market/book) for each firm for the last three years. Put your results in a table format in your appendices and discuss in your memo.
- Sixth, use the extended Du Pont equation to provide a summary and overview of your firms financial condition as projected for 2021. What are your firms major strengths and weaknesses?
- Seventh, discuss some qualitative factors that you should consider when evaluating your firms future performance. Relate these factors to your firm.
- Eight, discuss the global business issues that your selected firm should consider (including exchange rates, interest rates, inflation / political / economic / social / cultural international business environment) when making financial decisions.
- Include all sources used for the analysis at the end of your report.
For this project I decided to work with the Firm Apple. The biggest competitor of Apple is Samsung. Could you please answer to these questions and compare Apple and Samsung ?
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