Apple Inc comparative and ratio analysis

Apple Inc comparative and ratio analysis

Overview of the topic

The company that has been selected for the topic is Apple Incorporation. Apple Inc is the leading Smartphone Company in the world. They have performed exceptionally well over the last several years. The founder of the Apple Inc was Steve Jobs who died in the year 2011, but he was the key person behind the success of this company. He laid the foundation of the company and is performing very well in their industry. Therefore, the financial analysis of Apple Inc will be conducted in the topic.

Financial Analysis of Apple Incorporation

The financials of the last three years of Apple Inc that covers 2009, 2010 and 2011 would be assessed in this company. The ratio analysis is going to be the major tool in conducting a proper analysis of the Apple Inc. The two main aspects that would be addressed in this research are the Liquidity and Profitability Ratio of Apple Inc. The Ratio Analysis of the Apple Incorporation is carried out in the following paragraphs.

Year 2009

Year 2010

Year 2011

Profitability Ratio

Gross Profit Margin

= 17 222/42 905

= 40.13% Profit Margin Ratio

= 8 235/42 905

= 19.19%

Liquidity Ratio

Current Ratio

= 31 555/11 506

= 2.74: 1

Quick Ratio

= 31 100/11 506

= 2.70: 1

Profitability Ratio

Gross Profit Margin

= 25,684/65,225

= 39.37% Profit Margin Ratio

= 14 013/65,225

= 21.48%

Liquidity Ratio

Current Ratio

= 41 678/20 722

= 2.05: 1

Quick Ratio

= 40 627/20 722

= 1.96: 1

Profitability Ratio

Gross Profit Margin

= 43,818/108,249

= 40.48% Profit Margin Ratio

= 25 922/108,249

= 23.94%



Liquidity Ratio

Current Ratio

= 44 988/27 970

= 1.61: 1

Quick Ratio

= 44 212/27 970

= 1.58: 1

Detailed Financial Analysis There were three years in which the financial performance of the Apple Incorporation was calculated. In the year 2009, the gross profit margin ratio was ...