Use Apple, Inc. Financial Information.

4 years of data

Calculate all ratios from page 737 in the text.

Use Financial Analysis Template (D2L)

Analyze trends.

The idea is to understand some of the meaning behind the trends in the ratios over time. Examples of the questions that your work would answer are:

What changes took place in the business over the four years?

How do you know?

What are the problems you see at Apple?

How do you know?

CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 27, September 26, 2015 September 28, 2013 Net sales $ 233,715 $ 182,795 $ 170,910 Cost of sales 140,089 112,258 106,606 Gross margin Operating expenses: 93,626 70,537 64,304 4,475 10,830 15,305 48,999 1,156 50,155 13,118 $53,394$ 39,510$ 37,037 8,067 14,329 22,396 71,230 1,285 72,515 19,121 6,041 11,993 18,034 52,503 980 53,483 13,973 Research and development Selling, general and administrative Total operating expenses Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes Net income Earnings per share: 9.28 $ 9.22 $ Basic 6.49 $ 5.72 Diluted 6.45 $ 5.68 Shares used in computing earnings per share: 5,753,421 5,793,069 6,085,572 6,122,663 6,477,320 6,521,634 Basic Diluted Cash dividends declared per share 1.98 $ 1.82 $ 1.64 See accompanying Notes to Consolidated Financial Statements