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Please help with the attached problem. I need help with the problems in the attachment below. Thank You 1. Calculate some key profitability, activity, leverage,
Please help with the attached problem. I need help with the problems in the attachment below. Thank You
1. Calculate some key profitability, activity, leverage, liquidity, and market ratios for Apple and BlackBerry over time. 2. Conduct a dynamic firm profitability analysis over time (fiscal years 2008-2012) as shown in Exhibit 5.1. Can you find signs of performance differentials between these two firms that may have indicated problems at BlackBerry? When did BlackBerry's performance problems become apparent? 3. Make a recommendation to Thorsten Heins, the CEO of BlackBerry, about actions he could take to improve firm performance. Key Financial Data for Apple and BlackBerry (fiscal years 2010-2012) There's a more organized version of the table below in the text: Strategic Management Rothaermel 2e on pages 152-154: In millions of US$ (except for per share items): Apple Y/E Sep. 2012 Apple Sep 2011 Apple Sep. 2010 Blkbrry Mar. 2013 Blkbrry Mar. 2012 Blkbrry Mar. 2011 Total rev. 156,508 108,249 65,225 11,073 18,423 19,907 Cost of rev., total 87,846 64,431 39,541 7,639 11,848 11,082 Gross profit 68,662 43,818 25,684 3,434 6,575 8,825 Selling/gen./admin 10,040 7,599 5,517 2,111 2,600 2,400 Total operating exp 13,421 10,028 7,299 4,669 5,078 4,189 Operating income 55,241 33,790 18,385 1,235 1,497 4,636 Income before tax 55,763 34,205 18,540 1,220 1,518 4,644 Income after tax 41,342 25,607 13,896 0 1,429 3,405 Net income 41,733 25,922 14,013 646 1,164 3,411 Diluted weighted avg shrs 945 937 925 524 524 538 Dividends per shr com. Stk 3 0 0 0 0 0 Diluted normalized EPS 44 28 15 1 2 6 Cash and equivalents 10,746 9,815 11,261 1,549 1,527 1,791 Shortterm investments 18,383 16,137 14,359 1,105 247 330 Cash & shrtterm invst 29,129 25,952 25,620 2,654 1,774 2,121 Accounts revble, trade net 10,930 5,369 5,510 2,353 3,062 3,955 Total receivables, net 18,69 11,717 9,924 2,625 3,558 4,279 Total inventory 791 776 1,051 603 1,027 618 Total current assets 57,653 44,988 41,678 7,101 7,071 7,488 Prop./plant/eqpmt, ttlnt 15,452 7,777 4,768 2,395 2,733 2,504 Accum depr., ttl Gdwill, net 1,135 896 741 0 304 508 Intangibles, net 4,224 3,536 342 3,448 3,286 1,798 Longterm investments 92,122 55,618 25,391 221 337 577 Other longterm assets, ttl 5,478 3,556 2,263 Total assets 176,064 116,371 75,183 13,165 13,731 12,875 Accounts payable 21,175 14,632 12,015 1,064 744 832 Accrued expenses 11,414 9,247 5,723 1,842 2,382 2,511 Other current liabilities, ttl 5,953 4,091 2,984 542 263 108 Total current liabilities 38,542 27,970 20,722 3,448 3,389 3,630 Total longterm debt 0 0 0 0 0 0 Total debt 0 0 0 0 0 0 Other liabilities, total 22,617 14,191 8,515 542 263 108 Total liabilities 57,854 39,756 27,392 3,705 3,631 3,937 ommon stock, total 667 381 283 13 14 66 Additional paidin capital 0 0 0 0 0 0 Retnd enings (accum def) 101,289 62,841 37,169 7,267 7,913 6,749 Total equity 118,210 76,615 47,791 9,460 10,100 8,938 Total liabi.& shrhldrs' eqty 176,064 116,371 75,183 13,165 13,731 12,875 Total common shrs otstnding 939 929 916 2,431 2,446 2,359Step by Step Solution
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