Question: need help finding ROIC, capital efficiency, woeking capital turn, fixed asset turn, fixed asset turn, receivable turn, payables turn Use the income statement and balance




Use the income statement and balance sheet information for Apple to fill in the missing items in the calculation of Apple's ROIC and supporting ratios. Once filled in correctly, compare Apple's performance to that of Blackberry. Where does Apple have an advantage? Where does Blackberry have an advantage? Salance strect: Cash 8 cash equivalents Short-tern marketable securities Accounts receivable Components Findshed goods Imventories Other Current Asset: Total current assets Long-term merketnble securities fixed Assets: PP\&E (net) other. assets Long term assets Joral assets Accounts payable Accrued expenses Deferred revenue other Total current lubplatles Lore-term debt Deferred revenue. nonicurrent: Defenred tar liabilitles Other nonecurrebt liabiliffes. Apple Inc ye sept 2014 16,74618,38310,9300079116,89315,452102,959 21,175 11,414 5,953 176,064 57,6532,7333,927 o 2,7333,927 re2,045 36,542 00009,312 Microsoft Corporation YE Har 3 et 2612 1,527 247 3,062 1,027 1,208 7,971 744 23,7316.660 3,389 Calculate of Apple's ROIC and supporting ratios. (Enter your responses rounded to two decimal places.) Exercise 8 - Calculating and Comparing Return on Invested Capital (ROIC) Apple v. Blackberry Return on Invested Capital (ROIC) is a profitability ratio that measures how effective the firm is at generating a return for investors who have provided capital (bondholders and stockholders). The ROIC calculation answers three questions: How tax efficient is the firm? How effective are the firm's operations? How intensively does the firm use capital? Comparing the answers to these questions between firms can help you understand why one firm is more profitable than another and where that profitability is coming from. In the following. Apple's ROIC is compared to Blackberry's. The income statement and balance sheet are provided for both firms. While the ROIC calculation for Blackberry is completed below, you have to complete the calculation for Apple by supplying the correct income statement and balance sheet information. As you fill in this information, the components of Apple's ROIC will be calculated along with some supporting ratios. Use these subcomponents and supporting ratios to compare Apple and Blacberry's performance. Where does Apple's advantage come from? This activity demonstrates the calculation of ROIC and the comparison of firm performance, supporting Learning Objective 5-1 and 52
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