XXXXXXXXXXwordsChoose a public company, and present findings from your financial analysis in a...

Question

XXXXXXXXXXwordsChoose a public company, and present findings from your financial analysis in a report. Your report must include the following:Give a description of the operating profit margin.Give a description of the asset turnover.Give a description of the equity multiplier.Give a description of the return on equity.Give a description of the return on assets.Calculate the operating profit margin. Explain your answer.Calculate the asset turnover. Explain your answer.Calculate the equity multiplier. Explain your answer.Calculate the return on assets. Explain your answer.Calculate the return on equity. Explain your answer.What does the DuPont analysis describe about the company chosen?Which ratio demonstrates the company’s weakest area? Explain your answer.

Robert · Accepted Answer

Apple Inc. is well known brand across the globe. It is a multinational corporation that design and 
manufacture electronic goods, computer software, personal computers and mobile handsets. The 
best known products are Mac line of computer, iPod media player, iPhone smartphone and iPad 
tablet computer. Some of the major ratios are calculated from the financial statement of Apple 
for the year 2016. The details are as follows: 
Operating profit margin 
It is defined as the operating profit earned over the total sales.  
In year 2016, 
The total operating income = 60,024 million 
Sales    = 215,639 million 
Operating profit margin = 60,024 / 215,639 
    = 27.83% 
Operating margin is quite impressive but needs to be compared with industry’s average and its 
peers to better analyze it. 
Assets turnover 
It is calculated as Net Sales / Average Assets. 
The ratio shows company’s efficiency in conversion of assets into sales. Higher the ratio, higher 
would be the efficiency of utilization of assets. 
Average assets = 321,686 million 
Sales  = 215,639 million 
Assets turnover  = 215,639 / 321,686 
    = 0.67 
The asset turnover is less than 1. It should be improved. Company should improve its assets 
utilization efficiency to generate more sales by employed assets. 
Equity multiplier 
It is defined as Total assets / Total equity. 
This ratio measures the company’s financial leverage. Companies finance their operations with 
equity or debt,

XXXXXXXXXXwords Choose a public company, and present findings from your financial analysis in a report. Your report must include the following: Give a description of the operating profit margin. Give...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment