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 company's 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

I FOIMS Which term refers to the sale of stocks and bonds to raise money? A. debt finance for stocks and equity finance for bonds OB. debt finance Oc. equity finance for stocks and debt finance for bonds OD. debt-equity financeEquity and debt financing both have their advantages and disadvantages. Which of the following pair of phrases below accurately reflect the Advantages of batt types of financing Debt Financing Equity Financing Changes stockholder control Dividends are optional Debt Financing Equity Financing Does not have to be repaid Does not change stockholder control Debt Financing Equity Financing Interest is tax deductible Does not have to be repaid Debt Financing Equity Financing Dividends are optional Interest is tax deductible