Deliverable Length: 2-3 pages (Please include introduction, body, conclusion and reference page). ...

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Deliverable Length: 2-3 pages (Please include introduction, body, conclusion and reference page).

Using the library and other course resources, find a manufacturing company's annual report.

Calculate the following ratios for the company that you select:

Return on assets
Return on equity
Gross profit margin
Debt to equity ratio
Debt ratio
Current ratio
Quick ratio
Inventory turnover
Total asset turnover
Price earnings ratio

Using the calculated ratios, analyze the financial performance of the firm. You will do this by looking at the ratios and comparing them to ratios from previous periods and in some cases, against their competitors. Keep in mind that you are trying to determine how the firm is performing under each of the listed ratios. In a memo to the chief executive officer (CEO), include the following:

Explain the ratios that you calculated.
Address other methods of analyzing financial statements aside from ratio analysis.
Explain your analysis of the firm, and make recommendations for improvement.
This assignment was somewhat completed by one of your experts. What is missing from this assignment is the introduction of the company. I am hoping that this assignment can be completed in as stated within the directions since I have been provided with an extension on the original due date.

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Robert · Accepted Answer

RATIO ANALYSIS
RATIO ANALYSIS 
 
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RATIO ANALYSIS 
Student Name: 
University Name:  
 
 
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Introduction 
Apple Inc. was started in a garage in 1976 by two college dropouts 25-year-old Steve 
Wozniak and 21-year-old Steve Jobs. It is now one of the largest manufacturers of personal 
computers (PC’s), mobile communication devices and portable music and video players. The 
portfolio of the company includes desktops and portable computers (Mac), iPhone, iPod 
(portable digital music and video players), Apple TV, Xserve, a variety of consumer and 
professional software applications, the Mac OS X operating system, other digital content and 
applications through the iTunes Store (provided by third parties), and other accessories, 
services and support offerings. The sale of its products across the globe is conducted through 
the online stores, its direct sales force, retail stores, and third-party wholesalers, retailers, and 
value-added resellers. In addition, the Company sells a variety of Mac, iPhone and iPod 
compatible products (manufactured and supplied by third parties), including application 
softwares, printers, storage devices, speakers, headphones, and various other accessories and 
peripheral devices through its online and retail stores. The company’s target market consists 
of individual customers/users, small and mid-sized businesses (“SMB”), educational 
institutions, other enterprises, government, and creative markets. 
Analysis
Apple 
Ratio 2012 2011 
Return on Assets 28.54% 27.07% 
Return on Equity 42.84% 41.67% 
Gross Profit Ratio 43.87% 40.00% 
Debt to Equity Ratio 0.489 0.519 
Debt Ratio 0.329 0.342 
 
 
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Current Ratio 1.496 1.610 
Acid Test Ratio 1.039 1.580 
Inventory Turnover Ratio 112.12 118.499 
Asset Turnover 1.0704 1.13 
PE Ratio 12.25
According to Drake “Just by looking at a profit and loss account and a balance sheet can give 
you a clear idea of the financial performance of any business, but for many people these 
statements are somewhat discouraging. However, after calculating a few financial ratios and 
its analysis can help in assessing quickly how well the business is performing and would also 
give early warning of financial problems.” 
Return on Assets:

Deliverable Length: 2-3 pages (Please include introduction, body, conclusion and reference page). Using the library and other course resources, find a manufacturing company's annual report. Calculate...

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