Name: BA 257 Winter 2022 Financial Statement Analysis Project Use the formulas on page 606 to calculate the following ratios using the most current financial statements for Apple Corporation. Liquidity and Efficiency Current Ratio Acid-test Ratio Accounts Receivable Turnover Inventory Turnover Days' sales uncollected Days' sales in inventory Total asset turnover Solvency Debt Ratio Equity Ratio Debt-to-equity Ratio Times interest earned Profitability Profit margin Ratio Gross margin Ratio Return on total assets Return on common stockholder's equity Book value per common share Basic earnings per share Market Prospects Price-earnings Ratio Dividend yield Apple Corp (Fiscal year ending Sept 28, 2021 Ratios Formula Formula Key Current Ratio A/B A Current Assets Acid-test Ratio C/B B Current Liabilities Accounts Receivable Turnover D/E C Quick Assets Inventory Turnover Days' sales uncollected F/G (E/D)*365 D Net Sales E Average A/R, Net Days' sales in inventory (H/F)*365 Total asset turnover Debt Ratio Equity Ratio Debt-to-equity Ratio Times interest earned Profit margin Ratio D/I K/J F COGS G Average Inventory H Ending Inventory L/J Average Total Assets K/L J Total Assets M/N K Total Liabilities O/D L Total Equity Gross margin Ratio (D-F)/D M Inc before I.E & I.T. Return on total assets 0/1 Return on common stockholder's equity (O-P)/Q Book value per common share L/R Basic earnings per share (O-P)/R Price-earnings Ratio Dividend yield S/(29) R T/S N Interest Expense O Net Income P Preferred Dividends Q. Average S.E. # of shares outstanding S Stock Price in date of report T Dividends per share Net sales: Products Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Services Total net sales Cost of sales: Products Services Total cost of sales Gross margin Years ended September 25, 2021 September 26, 2020 September 28, 2019 297,392 $ 220,747 $ 213,883 68,425 53,768 46,291 365,817 274,515 260,174 192,266 151,286 144,996 20,715 18,273 16,786 212,981 169,559 161,782 152,836 104,956 98,392 Operating expenses: Research and development 21,914 18,752 16,217 Selling, general and administrative 21,973 19,916 18,245 Total operating expenses 43,887 38,668 34,462 Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes Net income 108,949 66,288 63,930 258 803 1,807 109,207 67,091 65,737 14,527 9,680 10,481 $ 94,680 $ 57,411 $ 55,256 Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic Diluted 69 69 5.67 $ 5.61 $ 3.31 3.28 $ $ 2.99 2.97 16,701,272 16,864,919 17,352,119 17,528,214 18,471,336 18,595,651 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities: Term debt Other non-current liabilities Total non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity: ASSETS: LIABILITIES AND SHAREHOLDERS' EQUITY: September 25, 2021 September 26, 2020 34,940 $ 38,016 27,699 52,927 26,278 16,120 6,580 4,061 25,228 21,325 14,111 11,264 134,836 143,713 127,877 100,887 39,440 36,766 48,849 42,522 216,166 180,175 $ 351,002 $ 323,888 $ 54,763 $ 42,296 47,493 42,684 7,612 6,643 6,000 4,996 9,613 8,773 125,481 105,392 109,106 98,667 53,325 54,490 162,431 153,157 287,912 258,549 Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,426,786 and 16,976,763 shares issued and outstanding, respectively 57,365 50,779 Retained earnings 5,562 14,966 Accumulated other comprehensive income/(loss) 163 (406) Total shareholders' equity 63,090 65,339 Total liabilities and shareholders' equity $ 351,002 $ 323,888 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except per share amounts) Years ended September 25, 2021 September 26, 2020 September 28, 2019 $ 65,339 $ 90,488 $ 107,147 Total shareholders' equity, beginning balances Common stock and additional paid-in capital: Beginning balances 50,779 45,174 40,201 Common stock issued 1,105 880 781 Common stock withheld related to net share settlement of equity awards (2,627) (2,250) (2,002) Share-based compensation 8,108 6,975 6,194 Ending balances 57,365 50,779 45,174 Retained earnings: Beginning balances 14,966 45,898 70,400 Net income 94,680 57,411 55,256 Dividends and dividend equivalents declared (14,431) (14,087) (14,129) Common stock withheld related to net share settlement of equity awards (4,151) (1,604) (1,029) Common stock repurchased (85,502) (72,516) (67,101) Cumulative effects of changes in accounting principles (136) 2,501 Ending balances 5,562 14,966 45,898 Accumulated other comprehensive income/(loss): Beginning balances (406) (584) (3,454) Other comprehensive income/(loss) 569 42 2,781 Cumulative effects of changes in accounting principles 136 89 Ending balances 163 (406) (584) Total shareholders' equity, ending balances 63,090 $ 65,339 $ 90,488 Dividends and dividend equivalents declared per share or RSU 0.85 $ 0.795 $ 0.75 See accompanying Notes to Consolidated Financial Statements