Apple Financial Ceo Memp

In: Business and Management

Submitted By catcorn
Words 429
Pages 2
AApple Inc.
Memo
To: Tim Cook, CEO
From: Team D
Date: December 3, 2012
The purpose of this memo is in regards to a recent horizontal and vertical analysis preformed on Apple Inc. for the following years 2009, 2010, and 2011.
The liquidity, profitability and solvency ratios analysis reveal that the company positions as follows: * Liquidity – * Current ratios 1.88:1 (2009), 2.01:1 (2010), 1.60:1 (2011) = Trend Flat * Acid Test (quick) ratios 1.85:1 (2009), 1.96:1 (2010), 1.58:1 (2011) = Trend Decreasing * Receivables turnover 14.84:1 (2009), 14.70:1 (2010), 19.90:1 (2011) = Trend Increasing * Inventory turnover 53.28:1 (2009), 52.51:1 (2010), 70.49:1 (2011) = Trend Increasing * Profitability Ratios * Asset Turnover .930:1 (2009), .868:1 (2010), .903:1 (2011) = Trend Decreasing * Profit Margins .401% (2009), .394% (2010), .405% (2011) = Trend Increasing * Return on Assets .173%% (2009), .186% (2010), .223% (2011) = Trend Increasing * Return on Common Stockholders’ Equity .260% (2009), .293% (2010), .338 (2011) = Trend Increasing * Solvency Ratios * Debt to Total Debt Ratio .334% (2009), .364% (2010), .342 (2011) =Trend Flat * Times Interest Earned 1.189 times (2009), 1.429 times (2010), 3.443 times (2011) = Trend Increasing

Analysis suggests that users would be interested in the different types of financial ratios concerning the liquidity, profitability, and solvency: * Liquidity - According to our analysis it is believed that Apple, Inc. has cash, cash equivalents and marketable securities to be sufficient to satisfy their working capital needs, and asset purchases, and outstanding commitments and other liquidity requirements associated with its existing operations. This would peak the interest of short-term creditors such as financial institutions and…...

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