Share what we learn from the data and information collected for this discussion. Interpret each of the ratios. Review the Financial Ratios Guidelines document for direction. Do you see any red flags? Does the company make greater use of debt financing or equity financing? Does the company have too much debt? How safely can the company cover its interest expense? How does this company compare to the industry averages?

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Company Website: https://www.apple.com Industry name and NAICS Code: Department Sores: NAICS 1 334220 +Debt Utilization Ratios: Industry 2020 2019 2018 Average* Debt Ratio 0.70 0.73 0.80 1.3 (Total Liabilities / Total Assets) 2.7 Equity Ratio 0.20 0.28 0.29 1.9 (Total Equity / Total Assets) 1.1 Times Interest Earned (EBIT / Interest Exp) 32.4 23 17.9 21.88 1.5 -2.0 Company Website: https://www.apple.com Industry name and NAICS Code: Department Sores: NAICS 1 334220 +Debt Utilization Ratios: Industry 2020 2019 2018 Average* Debt Ratio 0.70 0.73 0.80 1.3 (Total Liabilities / Total Assets) 2.7 Equity Ratio 0.20 0.28 0.29 1.9 (Total Equity / Total Assets) 1.1 Times Interest Earned (EBIT / Interest Exp) 32.4 23 17.9 21.88 1.5 -2.0

Answer rating: 100% (QA)

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