Question

Analysis of liquidity and profitability measures of Apple Inc. The following summarized data (amounts in millions) are taken from the September 24, 2011, and September 25, 2010, comparative financial statements of Apple Inc., a manufacturer of personal computers, portable digital music players, and mobile communications devices, along with a variety of related software, services, peripherals, and networking solutions:


At September 26, 2009, total assets were $47,501 and total shareholders' equity was $31,640.

Required:
a. Calculate Apple Inc.'s working capital, current ratio, and acid-test ratio at September 24, 2011, and September 25, 2010. Round your ratio answers to one decimal place.
b. Calculate Apple's ROE for the years ended September 24, 2011, and September 25, 2010. Round your percentage answers to one decimal place.
c. Calculate Apple's ROI, showing margin and turnover, for the years ended September 24, 2011, and September 25, 2010. Round your turnover calculations to two decimal places. Round your margin and ROI percentages to one decimal place.
d. Evaluate the company's overall liquidity and profitability.
The following historical data were derived from Apple Inc.'s consolidated financial statements (in millions):


e. Calculate Apple Inc.'s total liabilities for each year presented above.
f. Are the trends expressed in these data generally consistent with each other?
g. In your opinion, which of these trends would be most meaningful to a potential investor in common stock of Apple Inc.? Which trend would be least meaningful?
h. What other data (trend or otherwise) would you like to have access to before making an investment in AppleInc.?


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  • CreatedOctober 05, 2013
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