Question: Please help compare Apple and Google using the established financial ratios below. I appreciate help with any of them. I will review! THank you so
Please help compare Apple and Google using the established financial ratios below. I appreciate help with any of them. I will review! THank you so much!
| APPLE | Interpretation and comparison between the two companies' ratios | |||||||
| Briefly explain what each ratio tells us. Indicate whether a higher or lower ratio is better. Then compare the two companies on this basis. Remember that each ratio below requires a comparison. | ||||||||
| Earnings per Share of Common Stock (basic - common) | $3.31 | $49.59 | ||||||
| Current Ratio | $143,713 | = | 1.36 | $174,296 | = | 3.07 | ||
| $105,392 | $56,834 | |||||||
| Gross Profit Rate | $104,956 | = | 38.2% | $97,618 | = | 53.5% | ||
| $274,515 | $182,527 | |||||||
| Profit Margin | $57,411 | = | 20.9% | $40,269 | = | 22.1% | ||
| $274,515 | $182,527 | |||||||
| Inventory Turnover | $170,143 | = | 41.7 | $26,080 | 33.4 | |||
| $4,083 | $782 | |||||||
| Days in Inventory | 365 | = | 9 | 365 | = | 11 | ||
| 41.7 | days | 33.4 | days | |||||
| Accounts Receivable Turnover | $274,515 | = | 17.0 | $182,527 | = | 5.9 | ||
| $16,120 | $30,930 | |||||||
| Average Collection Period | 365 | = | 21 | 365 | = | 62 | ||
| 17.0 | days | 5.9 | days | |||||
| Asset turnover | $274,515 | = | 0.85 | $182,527 | = | 0.61 | ||
| $323,888 | $297,762 | |||||||
| Return on Assets (ROA) | $57,411 | = | 17.7% | $40,269 | = | 13.5% | ||
| $323,888 | $297,762 | |||||||
| Debt to assets ratio | $105,392 | = | 73.3% | $744,783 | = | 35.5% | ||
| $143,713 | $2,095,083 | |||||||
| Times-Interest Earned Ratio | $69,964 | = | 24.4 | 61,914 | = | 0.5 | ||
| $2,873 | 135,000 | |||||||
| Dividend Yield | $0.81 | = | 0.6% | $0.00 | = | 0.0% | ||
| $134.16 | $2,282.75 | |||||||
| Return on Common Stockholders' Equity (ROE) | 57,411 | = | 73.7% | 60,908 | = | 28.0% | ||
| 77,913.00 | 217,732.00 | |||||||
| Free cash flow | = | $73,365 | = | $42,843 | ||||
| in thousands | in thousands | |||||||
| Price-Earnings Ratio | $134.16 | = | 36 | $2,282.75 | = | 39 | Apple has a good P/E ratio. | |
| $3.69 | $58.70 | |||||||
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