In this project, I will present the financial statement analysis of Apple Company. The ratios of Apple can help us to understand the status of the company. We evaluate the current status of Apple’s liquidity using the current ratio, the liquidity ratio, and, the cash ratio. We have also analyzed the performance of apple using several ratios (Bayzid et al., 2020). We have downloaded the data from Yahoo Finance:
Table 1: Financial Data ( APPLE)
9/29/2019
9/29/2018
9/29/2017
9/29/2016
Total Assets
338,516,000
365,725,000
375,319,000
321,686,000
Total Liabilities Net Minority Interest
248,028,000
258,578,000
241,272,000
193,437,000
Total Equity Gross Minority Interest
90,488,000
107,147,000
134,047,000
128,249,000
Total Capitalization
182,295,000
200,882,000
231,254,000
203,676,000
Common Stock Equity
90,488,000
107,147,000
134,047,000
128,249,000
Net Tangible Assets
90,488,000
107,147,000
126,032,000
119,629,000
Working Capital
57,101,000
14,473,000
27,831,000
27,863,000
Invested Capital
198,535,000
221,630,000
249,727,000
215,281,000
Table 2: Liquidity
| Ratio/Year | 2019 | 2018 | 2017 |
| Current Ratio | 1.49 | 1.3 | 1.3 |
| Quick Ratio | 1.28 | 1.24 | 1.44 |
| Cash Ratio | 0.95 | 0.57 | 0.73 |
The current ratio was 1.3 in 2017 and 2018, but it is increased in 2019 to be 1.49. Quick ratio was 1.44 in 2017, then it is decreased in 2018 to be 1.24 and then increased in 2019 to be 1.28, cash ratio was 0.73 in 2017, then became 0.57 in 2018 and then increased again in 2019 to be 0.95.
Table 3: Activity Ratios of (name of company)
| Ratio/Year | 2019 | 2018 | 2017 |
| Inventory Turnover | 40.1 | 37.2 | 40.4 |
| Receivable Turnover | 17.58 | 19 | 18 |
| Total Asset Turnover | 8 | 5.80 | 4.89 |
For inventory turnover, it shows that it was 40.4 in 2017 and then decreased to be 37.8 in 2018, then it is increased again to be 40.1 in 2019, for receivable turnover it was 18 in 2017, then it is increased in 2018 to be 19, then it is decreased in 2019 to be 17.58, for total assets it is 4.89 in 2017, then it is increased to be 5.8 in 2018 and also keep increasing in 2019 to be 8 (Almutairi and Nobanee, 2020).
Table 4: Debt Ratios of (Apple)
| Ratio/Year | 2019 | 2018 | 2017 |
| Debt Ratio | 0.95 | 0.83 | 0.7 |
| Times Interest Earned Ratio | 0.33 | 0.36 | 0.37 |
Table 5: Profitability Ratios of (Apple)
| Ratio/Year | 2019 | 2018 | 2017 |
| Return on Equity | 55.9% | 49.4% | 36.9% |
| Return on Assets | 15.7% | 16.1% | 13.9% |
| Profit Margin | 37.8% | 38.3% | 38.5% |
“CFA 2020 https://www.wallstreetmojo.com/profitability-ratios-formula/”
as it shows from the table the return on equity was 36.9% in 2017, then it is increased in 2018 to be 49.4%, then it keeps increasing in 2019 to be 55.9% . for return on assets, it is 13.9%c in 2017, then increased on 2018 to be 16.1 % and it is reduced again in 2019 to be 15.7%, for margin it is 38.5% in 2017, it is reduced in 2018 to be 38.3%, then it is continuing decrease in 2019 to be 37.8% (Bint-Tariq et al, 2020) .
References
- Andrew Bloomenthal , reviewed by David Kindness , May , 14 , 2020 , https://www.investopedia.com/terms/r/ratioanalysis.asp
- Verizon media, 2020, https://finance.yahoo.com/quote/AAPL/balance-sheet?p=AAPL
- S&P Global Market Intelligence.,2020 , S&P , https://finbox.com/NASDAQGS:AAPL/explorer/inventory_turnover
- Discover CI , 2020 , https://www.discoverci.com/companies/AAPL/accounts-receivable-turnover
- Macrotrends LLC , 2020 https://www.macrotrends.net/stocks/charts/AAPL/apple/debt-equity-ratio
- Macrotrends LLC , 2020 https://www.macrotrends.net/stocks/charts/AAPL/apple/financial-statements
- WallStreetMojo. CFA 2020 https://www.wallstreetmojo.com/profitability-ratios-formula/
- Verizon Media , 2020 https://finance.yahoo.com/quote/AAPL/balance-sheet?p=AAPL
- Billy Duberstein , Oct 10, 2019 at 7:09AM, https://www.fool.com/investing/2019/10/10/its-time-to-get-excited-about-apples-stock-again.aspx
- ANDREW BEATTIE ,, Sep 22, 2019 https://www.investopedia.com/articles/personal-finance/042815/story-behind-apples-success.asp
- Bayzid, Mohammad and Alshamsi, Asma and Albeshr, Salah and Smith, Aaron and Al Mulla, Shamma and Almutairi, Meshal and Nobanee, Haitham, Overview of Financial Institutions in the United Arab Emirates (2020). Available at SSRN: https://ssrn.com/abstract=3579299 or http://dx.doi.org/10.2139/ssrn.3579299
- Bint-Tariq, Mah-Noor and Al Dhaheri, Ahmed and AlMazrouie, Alia and Al-Blooshi, Laila and Al Mazrouei, Fatima and Nobanee, Haitham, Ratio Analysis of Emaar (2020). Available at SSRN: https://ssrn.com/abstract=3603270 or http://dx.doi.org/10.2139/ssrn.3603270
- Almutairi, Meshal and Nobanee, Haitham, Artificial Intelligence in Financial Industry (2020). Available at SSRN: https://ssrn.com/abstract=3578238 or http://dx.doi.org/10.2139/ssrn.3578238
