I need your help
1. Explain what the results of your calculations say about the overall health of the company and its future value.
2. Describe the data points you found in the annual report that relate to the companys capital constraints and spending trends.
3. Interpret the data points and explain whether or not the company is making appropriate capital expenditure allocations.
Current Ratio Apple's latest twelve months Current Ratio is 1.5x. Apple's Current Ratio hit it's four year low in Sep, 2015 of 1.1x. . Looking back at the last four years, Apple's Current Ratio peaked in Jun, 2019 at 1.5x. Apple's operated at median Current Ratio of 1.1x from fiscal years ending Sep, 2014 to 2018. Apple's Current Ratio for fiscal years ending Sep, 2014 to 2018 averaged 1.2x. Apple's Current Ratio decreased in 2017 (1.3x, -5.7%) and 2018 (1.1x, -11.9%) and increased in 2016 (1.4x, +22.0%). The median company in the Information Technology sector has Current Ratio of 2.0x. Apple's Current Ratio is 25% less than the sector median for the most recent period. Quick ratio The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Apple's quick ratio for the Annually that ended in Sept. 2018 was 1.09. / Quick Ratio (A: (Total Current Assets Total Inventori es) Total Current Liabilities ep. 2018) (131339 3956) / 116866 1.09 Return on assets Apple's annualized Return on Assets (ROA) for the fiscal year that ended in Sep. 2018 is calculated as: ROA / + 12) Net Income (A: Sep. 2018 ) 59531 ( (Total Assets A: Sep. 2017 ) ( (3753 Total Assets A: Sep. 2018 )) 365725 1 /2) 19 / 370522 59531 16.07% Accounts Receivable Turnover Ratio Jun 29, 2019 III. Quarter Receivable Turnover Ratio (TTM) Dec 29, 2018 1. Quarter 14.63 15.02 Operating Cash-Flow Ratio Apple's Share Price of today is $227.01. Apple's Cash Flow from Operations per share for the trailing twelve months (TTM) ended in Jun. 2019 was 4.027 (Sep. 2018 ) + 5.592 (Dec. 2018 ) +2.373 (Mar. 2019 ) + 2.529 (Jun. 2019 ) = $14.52. Pretax Net Profit Margin 2018-12-31 2018-09-30 2018-06-30 2018-03-31 2017-12-31 2017-09-30 2017-06-30 2017-03-31 2016-12-31 $261.61B $265.60B $255.27B $247.42B $239.18B $229.23B $223.51B $220.46B $218.12B $69.78B $72.90B $70.40B $68.42B $66.94B $64.09B $62.36B $61.52B $60.98B 26.67% 27.45% 27.58% 27.65% 27.99% 27.96% 27.90% 27.91% 27.96% Inventory Turnover Inventor Turnove r (A: Sep. 2018) Cost of 1 Goods Sold Cost of 1 Goods Sold (A: 1 Total Inventor ies (Total Inventor ies (A: Sep. 2017 ) (4855 4405.5 Total Inventor ies (A: Sep. 2018 )) 3956) Sep. 2018 ) 163756 163756 37.17 / 1 Current Ratio Apple's latest twelve months Current Ratio is 1.5x. Apple's Current Ratio hit it's four year low in Sep, 2015 of 1.1x. . Looking back at the last four years, Apple's Current Ratio peaked in Jun, 2019 at 1.5x. Apple's operated at median Current Ratio of 1.1x from fiscal years ending Sep, 2014 to 2018. Apple's Current Ratio for fiscal years ending Sep, 2014 to 2018 averaged 1.2x. Apple's Current Ratio decreased in 2017 (1.3x, -5.7%) and 2018 (1.1x, -11.9%) and increased in 2016 (1.4x, +22.0%). The median company in the Information Technology sector has Current Ratio of 2.0x. Apple's Current Ratio is 25% less than the sector median for the most recent period. Quick ratio The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Apple's quick ratio for the Annually that ended in Sept. 2018 was 1.09. / Quick Ratio (A: (Total Current Assets Total Inventori es) Total Current Liabilities ep. 2018) (131339 3956) / 116866 1.09 Return on assets Apple's annualized Return on Assets (ROA) for the fiscal year that ended in Sep. 2018 is calculated as: ROA / + 12) Net Income (A: Sep. 2018 ) 59531 ( (Total Assets A: Sep. 2017 ) ( (3753 Total Assets A: Sep. 2018 )) 365725 1 /2) 19 / 370522 59531 16.07% Accounts Receivable Turnover Ratio Jun 29, 2019 III. Quarter Receivable Turnover Ratio (TTM) Dec 29, 2018 1. Quarter 14.63 15.02 Operating Cash-Flow Ratio Apple's Share Price of today is $227.01. Apple's Cash Flow from Operations per share for the trailing twelve months (TTM) ended in Jun. 2019 was 4.027 (Sep. 2018 ) + 5.592 (Dec. 2018 ) +2.373 (Mar. 2019 ) + 2.529 (Jun. 2019 ) = $14.52. Pretax Net Profit Margin 2018-12-31 2018-09-30 2018-06-30 2018-03-31 2017-12-31 2017-09-30 2017-06-30 2017-03-31 2016-12-31 $261.61B $265.60B $255.27B $247.42B $239.18B $229.23B $223.51B $220.46B $218.12B $69.78B $72.90B $70.40B $68.42B $66.94B $64.09B $62.36B $61.52B $60.98B 26.67% 27.45% 27.58% 27.65% 27.99% 27.96% 27.90% 27.91% 27.96% Inventory Turnover Inventor Turnove r (A: Sep. 2018) Cost of 1 Goods Sold Cost of 1 Goods Sold (A: 1 Total Inventor ies (Total Inventor ies (A: Sep. 2017 ) (4855 4405.5 Total Inventor ies (A: Sep. 2018 )) 3956) Sep. 2018 ) 163756 163756 37.17 / 1
