Apple INC.: MANAGING A GLOBAL SUPPLY CHAIN. Case Study

1. Financial analysis. Conduct a thorough financial analysis.

Objectives

The objectives of the financial analysis of a company in the case analysis are:

1. To establish the current financial health of the company using data provided in the case.

2. To use conclusions from the financial analysis as one of the metrics to establish whether the companys strategy has been a success.

3. To draw conclusions from the financial analysis about whether the financials rate a constraint on future strategic growth or whether the financials are a facilitator for enhancing future growth.

Ratio Analysis

Profitability, Liquidity, Leverage, and Activity ratios are important, especially the Current Ratio, and Debt-to-Equity ratio. Different industries have different activity ratios that are important, for example, Retail inventory turnover, sales/square foot; Airlines cost/seat mile. Identify the activity ratio for the industry covered by the case. Other ratios that may be important: Dividend payout; P/E Some ratios are more relevant if you have the industry ratios.