ration analysis of apple

RATION ANALYSIS OF

APPLE COMPANY

INTRODUCTION

Apple com. Is a multinational corporation that creates consumer electronics personal computers, computer software's.

Company was started April 1, 1976

The CEO is TIM COOK

To identify aspects of a business’s performance to aid decision making.

Quantitative process – may need to be supplemented by qualitative factors to get complete picture

THE PURPOSE OF RATIO ANALYSIS

LIQUIDITY RATIO

FORMULA 2014 2013

1.08

1.68

0.90 1.08

Current Ratio idle should be 2 : 1

Acid Test Ratio idle should be 1 : 1

FORMULA 2014 2013

38.59 37.62

21.61 21.67

32.34 31.21

PROFITABILITY RATIO

Gross Profit Margin idle should be > 50%

Net Profit Margin idle should be > 25%

Return On Capital Employed idle, Compare with bank interest rate

FORMULA 2014 2013

17.53 10.55

GEARING RATIO

Gearing Ratio idle should be > 40% (Highly Geared)

Gearing Ratio idle should be < 40% (Lower Geared)

EFFICIENCY RATIO2014 2013

0.79 0.83

53.18 60.43

63 Days 52 Days

Assets Turn Over Ratio’s Idle should be > 100 times

Stocks Turn Over Ratio’s Idle should be > 10 times

Debtor Collection Day's Idle should be < 30 Days

INVESTMENT / SHAREHOLDERS RATIOFORMULA 2014 2013

189.83 209.88

7 months 6 moths

53.45 59.86

Price Earning Ratio’s Idle should be < 1 year

THE TIME FOR …………………

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