Question
In this assignment you will analyze the performance of a publicly traded company Segement(division). SFAS 131 requires publicly traded companies to disclose division information in
In this assignment you will analyze the performance of a publicly traded company Segement(division). SFAS 131 requires publicly traded companies to disclose division information in the notes to the financial statements. You will use Excel to create visually appealing data tables and bar charts to analyze division performance, and then comment on the results.
The link is to the Apple 10K and apparently too big to upload. I really need help, thank you. https://s2.q4cdn.com/470004039/files/doc_financials/2020/ar/_10-K-2020-(As-Filed).pdf
Add one textbox for EACH of the following:
1. ROI:
What does ROI tell management?
Which segments have the best and worst ROI or are they roughly the same (how do they compare)?
How could a segment of this company improve its ROI? Give me an example of a specific action that could be taken to improve ROI.
2. Sales Margin:
What does Sales Margin tell management?
Which segments have the best and worst or are they roughly the same (how do they compare)?
How could a segment of this company improve its sales margin? Give me an example of a specific action that could be taken to improve sales margin.
3. Capital Turnover:
What does Capital Turnover tell management?
Which divisions have the best and worst? How do they compare?
How could a segment of this company improve its capital turnover? Give me an example of a specific action that could be taken to improve capital turnover.
4. Residual Income:
What does Residual Income tell management?
Do any of the segments fall short of managements expectations? How can you tell?
5. Allocation decision:
If you were upper management (CEO of the whole corporation), and had excess funds to allocate among divisions, which division would you allocate those funds to and why?
6. Responsibility Accounting
What type of Responsibility centers are i) the divisions, ii) corporate?
7. Measurement issues
When you did the ROI, sales margin, capital turnover, and residual income calculations, using the segment information provided in the footnotes, did you use the 1) gross book value (GBV) of the assets, or 2) net book value (NBV) of the assets? How can you tell? (HINT: Look at the Consolidated Balance Sheet of the 10k). What is the risk when companies use the NBV for assessing ROI?
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