Download - 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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