AAPL Balance Sheets				HPQ Balance Sheets
Assets	9/30/2019	9/30/2018	9/30/2017	Assets	10/31/2019	10/31/2018	10/31/2017
Cash & Equivalents	100,557	66,301	74,181	Cash & Equivalents	4,537	5,166	6,997
Receivables	45,804	48,995	35,673	Receivables	6,031	5,113	4,414
Notes Receivable	0	0	0	Notes Receivable	0	0	0
Inventories	4,106	3,956	4,855	Inventories	5,734	6,062	5,786
Other Current Assets	12,352	12,087	13,936	Other Current Assets	3,875	5,046	5,121
Total Current Assets	162,819	131,339	128,645	Total Current Assets	20,177	21,387	22,318
Net Property & Equipment	37,378	41,304	33,783	Net Property & Equipment	2,794	2,198	1,878
Investments & Advances	105,341	170,799	194,714	Investments & Advances	0	0	0
Other Non-Current Assets	0	0	0	Other Non-Current Assets	0	0	0
Deferred Charges	0	0	0	Deferred Charges	0	0	0
Intangibles	0	0	8,015	Intangibles	6,372	5,968	5,622
Deposits & Other Assets	32,978	22,283	10,162	Deposits & Other Assets	4,124	5,069	3,095
Total Assets	338,516	365,725	375,319	Total Assets	33,467	34,622	32,913
Liabilities & Shareholders Equity	9/30/2019	9/30/2018	9/30/2017	Liabilities & Shareholders Equity	10/31/2019	10/31/2018	10/31/2017
Notes Payable	0	0	0	Notes Payable	357	1,463	1,072
Accounts Payable	46,236	55,888	49,049	Accounts Payable	14,793	14,816	13,279
Current Portion Long-Term Debt	16,240	20,748	18,473	Current Portion Long-Term Debt	0	0	0
Current Portion Capital Leases	0	0	0	Current Portion Capital Leases	0	0	0
Accrued Expenses	0	0	25,744	Accrued Expenses	10,143	8,512	6,835
Income Taxes Payable	0	0	0	Income Taxes Payable	0	340	214
Other Current Liabilities	43,242	40,230	7,548	Other Current Liabilities	0	0	1,012
Total Current Liabilities	105,718	116,866	100,814	Total Current Liabilities	25,293	25,131	22,412
Mortgages	0	0	0	Mortgages	0	0	0
Deferred Taxes/Income	0	2,797	2,836	Deferred Taxes/Income	0	0	0
Convertible Debt	0	0	0	Convertible Debt	0	0	0
Long-Term Debt	91,807	93,735	97,207	Long-Term Debt	4,780	4,524	6,747
Non-Current Capital Leases	0	0	0	Non-Current Capital Leases	0	0	0
Other Non-Current Liabilities	50,503	45,180	40,415	Other Non-Current Liabilities	4,587	5,606	7,162
Minority Interest (Liabilities)	0	0	0	Minority Interest (Liabilities)	0	0	0
Total Liabilities	248,028	258,578	241,272	Total Liabilities	34,660	35,261	36,321
Shareholders Equity	9/30/2019	9/30/2018	9/30/2017	Shareholders Equity	10/31/2019	10/31/2018	10/31/2017
Preferred Stock	0	0	0	Preferred Stock	0	0	0
Common Stock (Par)	45,174	40,201	35,867	Common Stock (Par)	15	16	16
Capital Surplus	0	0	0	Capital Surplus	835	663	380
Retained Earnings	45,898	70,400	98,330	Retained Earnings	-818	-473	-2,386
Other Equity	-584	-3,454	-150	Other Equity	-1,225	-845	-1,418
Treasury Stock	0	0	0	Treasury Stock	0	0	0
Total Shareholder's Equity	90,488	107,147	134,047	Total Shareholder's Equity	-1,193	-639	-3,408
Total Liabilities & Shareholder's Equity	338,516	365,725	375,319	Total Liabilities & Shareholder's Equity	33,467	34,622	32,913
Total Common Equity	90,488	107,147	134,047	Total Common Equity	-1,193	-639	-3,408
Shares Outstanding	17,773.00	18,981.50	20,660.90	Shares Outstanding	1,481.90	1,582.40	1,670.20
Book Value Per Share	5.09	5.64	6.49	Book Value Per Share	-0.81	-0.4	-2.04

AAPL Income Statements				HPQ Income Statements
	9/30/19	9/30/18	9/30/17		10/31/19	10/31/18	10/31/17
Sales	260,174	265,595	229,234	Sales	58,756	58,472	52,056
Cost Of Goods	161,782	163,756	141,048	Cost Of Goods	47,586	47,803	42,478
Gross Profit	98,392	101,839	88,186	Gross Profit	11,170	10,669	9,578
Selling & Adminstrative & Depr. & Amort Expenses	34,462	30,941	26,842	Selling & Adminstrative & Depr. & Amort Expenses	7,293	6,605	6,059
Income After Depreciation & Amortization	63,930	70,898	61,344	Income After Depreciation & Amortization	3,877	4,064	3,519
Non-Operating Income	1,807	2,005	2,745	Non-Operating Income	0	0	0
Interest Expense	0	0	0	Interest Expense	1,354	1,051	243
Pretax Income	65,737	72,903	64,089	Pretax Income	2,523	3,013	3,276
Income Taxes	10,481	13,372	15,738	Income Taxes	-629	-2,314	750
Minority Interest	0	0	0	Minority Interest	0	0	0
Investment Gains/Losses	0	0	0	Investment Gains/Losses	0	0	0
Other Income/Charges	0	0	0	Other Income/Charges	0	0	0
Income From Cont. Operations	55,256	59,531	48,351	Income From Cont. Operations	3,152	5,327	2,526
Extras & Discontinued Operations	0	0	0	Extras & Discontinued Operations	0	0	0
Net Income	55,256	59,531	48,351	Net Income	3,152	5,327	2,526
Depreciation Footnote	9/30/19	9/30/18	9/30/17	Depreciation Footnote	10/31/19	10/31/18	10/31/17
Income Before Depreciation & Amortization	76,477	81,801	71,501	Income Before Depreciation & Amortization	4,621	4,592	3,873
Depreciation & Amortization (Cash Flow)	12,547	10,903	10,157	Depreciation & Amortization (Cash Flow)	744	528	354
Income After Depreciation & Amortization	63,930	70,898	61,344	Income After Depreciation & Amortization	3,877	4,064	3,519
Earnings Per Share Data	9/30/19	9/30/18	9/30/17	Earnings Per Share Data	10/31/19	10/31/18	10/31/17
Average Shares	18,595.65	20,000.44	21,006.77	Average Shares	1,524.00	1,634.00	1,702.00
Diluted EPS Before Non-Recurring Items	2.97	2.98	2.3	Diluted EPS Before Non-Recurring Items	2.24	2.02	1.65
Diluted Net EPS	2.97	2.98	2.3	Diluted Net EPS	2.07	3.26	1.48

		Apple			HP
	Formula	2019	2018	2017	2019	2018	2017
Current Ratio	CA / CL	1.54	1.12	1.28	0.80	0.85	1.00
Quick Ratio	(CA - Inv.) / CL	1.50	1.09	1.23	0.57	0.61	0.74
Debt-Equity Ratio	Total L / Total SE	1.17	1.09	0.75	-21.20	-39.33	-6.58
Days Sales in Inventory	(Inv. / COGS) * 365	9.3	8.8	12.6	44.0	46.3	49.7
Days Sales in Accounts Receivable	(AR / Sales) * 365	64.3	67.3	56.8	37.5	31.9	30.9
Total Asset Turnover	Sales / Total Assets	0.77	0.73	0.61	1.76	1.69	1.58
Profit Margin	Net Income / Sales	21.24%	22.41%	21.09%	5.36%	9.11%	4.85%
ROA	Net Inc. / Total Assets	16.32%	16.28%	12.88%	9.42%	15.39%	7.67%
ROE	Net Inc. / Total SE	61.06%	55.56%	36.07%	-264.21%	-833.65%	-74.12%
PE Ratio	Stock Price / EPS	18.24	18.59	16.06	8.09	6.91	13.27

1) Perform the time trend analysis for each ratio for these two companies over three years. What
kind of information can be obtained based on the trend analysis?
(2) Perform the peer group analysis to discuss Apple strengths and weaknesses relative to
HP
(3) Use the Du Pont Identity to further analyze ROE’s for two companies to support your
analysis in (2).
(4) Based on your analysis (1) through (3), which firm has more healthy financial condition?

Answer rating: 100% (QA)

1 Perform the time trend analysis for each ratio for these two companies over three years What kind of information can be obtained based on the trend ... View the full answer