MBALN612

Assignment 1
Ahmed Omer Redha

Part -1

ACurrent ratio = Current assets / current liabilities

Current assets
Current liabilities

2014
1350
900

2013
1343
810

Current ratio

1.5

1.66

BInventory turnover= Cost of goods sold / Average inventory

Cost of goods sold
Average inventory
Inventory turnover

984
410
2.4

895
358
2.5

CProfit Margin =

Net income
Sales
Profit margin ratio

364
4000
9.10%

Net Income
Net Sales

213
3600
5.92%

DReturn on Assets =

Net income
Average assets
Return on assets

364
2276.5
15.99%

213
2171.5
9.81%

Net Income
Average Assets

EReturn on Common
Net Income
=
Average Common Stockholders Equity
Stockholders Equity

Net income
Average equity
Return on common
stockholder's equity

364
1030
35.34%

213
1030
21.30%

FDebt to Total Assets

Total Debt
=
Total Assets
Ratio

Debt
Total assets
Debt to total assets

1290
2310
0.56

1203
2243
0.54

GTimes Interest
=
Earned

EBIT
Interest expense
Times interest earned

616
10
61.60

375
20
18.75

Income before Income Taxes

and Interest Expense
Interest Expense

Current ratio
Current ratio is used to determine the organization's capacity to pay off transient commitments is examined, It can be seen that the present
proportion of the organization has diminished in 2014 when contrasted with 2013 with about 9.5%,the present proportion in 2014 was 1.50
when contrasted with 1.66 in 2013. This expresses the organization's liquidity and short-term debt paying ability has diminished.

Inventory turnover
Turnover helps in dissecting the productivity of the firm, and in investigating how adequately stock is sold, in other word we can say; how
often the organization can deal and supplant the stock over the period.
The organization has low stock turnover which expresses that the organization has poor deals, the stock turnover has diminished in 2014
when contrasted with 2013 which expresses that the organization is not ready to turn its stock to deals adequately.
Profit margin ratio
Helps in telling the benefit of the firm. The benefit of the firm is 9.10% in 2014 when contrasted with 5.92% in 2013, which is around 54%
expansion.
This expresses the productivity of the organization has expanded which can be a direct result of the expansion in deals or reduction in costs
or b

Return on Assets
One of the measures of benefit which expresses the arrival that the organization can give on the advantages. Higher the proportion better is
the arrival. Taking a gander at the arrival we can say that the organization has possessed the capacity to give a superior return in 2014.

Return on common shareholders equity

Return on regular shareholder's value is a standout amongst the most critical comes back from the financial specialists perspective as they
see the arrival that the organization can give on their speculation. Return on value in 2014 is much higher than 2013 which is a direct result
of the expansion in net wage of the organization.

Debt to asset ratio

Shows the extent of the obligation held by the organization. Higher the obligation poor is the noteworthiness of the organization. It implies
that the higher extent of advantages are financed by obligation. The organization's obligation to resource proportion has expanded in 2014
to 0.56 which expresses that around 56% of benefits of the organization are financed by the obligation.

Times interest earned

States the quantity of times the organization can pay off enthusiasm from its income before charges and intrigue. The TIE proportion has
expanded by more than 200% in light of decline in interest cost and increment in benefits of the organization. By and large, the monetary
state of the organization has enhanced in 2014 predominantly because of its productivity, the organization needs to enhance its transient
commitments

Part-2
In Performance evaluation, Ill evaluate Apple Inco. Financial performance, including, financials, profitability, financial health, stock performance, valuation and its
growth rates.

The Company outlines, produces and markets versatile correspondence and media gadgets, PCs and convenient computerized music players, and offers an assortment of
related programming, administrations, frill, organizing arrangements and outsider advanced substance and applications. The Company offers its items around the world
through its retail locations, online stores and direct deals power, and in addition through outsider cell system bearers, wholesalers, retailers and worth included affiliates.

Moreover, the Company offers an assortment of outsider Apple good items, including application programming and different embellishments through its online and
retail locations. The Company offers to shoppers, little and medium sized organizations and training, venture and government clients.
Net deals rose 28% or $50.9 billion amid 2015 contrasted with 2014, driven by a 52% year-over-year increment in iPhone net deals. iPhone net deals and unit

Fiscal 2015 Highlight

Deals in 2015 expanded in the majority of the Company's reportable working sections. The Company likewise experienced year-over-year net deals increments in Mac
, Administrations and Other Products. Apple Watch , which dispatched amid the second from last quarter of 2015, represented more than 100% of the year-over-year
development in net offers of Other Products. Net deals development amid 2015 was halfway balanced by the impact of shortcoming in most outside coinage with
respect to the U.S. dollar and lower iPad net deals. Absolute net deals expanded in each of the Company's reportable working portions, with especially solid
development in Greater China where year-over-year net deals expanded 84%.
In April 2015, the Company reported a critical increment to its capital return program by raising the normal aggregate size of the system to $200 billion through Walk
2017. This included expanding its offer repurchase approval to $140 billion and raising its quarterly profit to $0.52 per offer starting in May 2015. Amid 2015, the
Company burned through $36.0 billion to repurchase shares of its normal stock and paid profits and profit reciprocals of $11.6 billion.
Furthermore, the Company issued $14.5 billion of U.S. dollar-designated, 4.8 billion of euro-named, SFr1.3 billion of Swiss franc-named, 1.3 billion of British
pound-designated, a$2.3 billion of Australian dollar-named and 250.0 billion of Japanese yen-named term obligation amid 2015

Fiscal 2014 Highlight

Net deals rose 7% or $11.9 billion amid 2014 contrasted with 2013. This was driven by increments in net offers of iPhone, Mac and Services. Net deals and unit deals
expanded for iPhone essentially because of the fruitful presentation of iPhone 5s and 5c in the last 50% of timetable year 2013, the effective dispatch of iPhone 6 and 6
Plus starting in the final quarter of 2014, and extended dispersion. Macintosh net deals and unit deals expanded essentially because of solid interest for MacBook Air
and MacBook Pro which were overhauled in 2014 with speedier processors and offered at lower costs. Net offers of Services became basically due to expanded
income from deals through the App Store , AppleCare and permitting. Development in these ranges was incompletely counterbalanced by the year-over-year
decrease in net deals for iPad because of lower unit deals in numerous business sectors, and a decrease in net offers of Other Products. The greater part of the Company's
working portions other
Amid 2014, the Company finished different business acquisitions, including the acquisitions of Beats Music, LLC, which offers a membership spilling music
administration, and Beats Electronics, LLC, which makes Beats earphones, speakers and sound programming.
In April 2014, the Company expanded its offer repurchase approval to $90 billion and the quarterly profit was raised to $0.47 per normal offer, bringing about a general
increment in its capital return program from $100 billion to over $130 billion. Amid 2014, the Company used $45 billion to repurchase its basic stock and paid profits
and profit reciprocals of $11.1 billion. The Company additionally issued $12.0 billion of long haul obligation amid 2014, with shifting developments through 2044, and
dispatched a business paper program, with $6.3 billion extraordinary as of September 27, 2014.

Ratio analysis is a standout amongst the most critical money related investigation device which helps in assessing the execution of the firm through alternate points of
view. Proportion investigation and budgetary articulation examination helps in breaking down the organization's execution from alternate point of view. It additionally
helps in looking at the budgetary position of the organization with different organizations.

Financials
2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014- 201509
09
09
09
09
09
09
09
09
TTM
24,57
37,49
42,90
65,22
108,2
156,5
170,9
182,7
233,7 220,2
19,315
8
1
5
5
49
08
10
95
15
88
29
33.2
35.2
40.1
39.4
40.5
43.9
37.6
38.6
40.1
39.5
11,74
18,38
33,79
55,24
48,99
52,50
71,23 62,88
2,453
4,407
8,327
0
5
0
1
9
3
0
6
12.7
17.9
22.2
27.4
28.2
31.2
35.3
28.7
28.7
30.5
28.5
14,01
25,92
41,73
37,03
39,51
53,39 47,79
1,989
3,495
6,119
8,235
3
2
3
7
0
4
7

2006-09
Revenue USD Mil
Gross Margin %
Operating Income
USD Mil
Operating Margin %
Net Income USD Mil
Earnings Per Share
USD
Dividends USD
Payout Ratio % *
Shares Mil
Book Value Per
Share * USD
Operating Cash
Flow USD Mil
Cap Spending USD
Mil
Free Cash Flow USD
Mil
Free Cash Flow Per
Share * USD
Working Capital
USD Mil

0.32

0.56

0.97

1.3

2.16

3.95

6.31
0.38

6,143

6,225

6,315

6,349

6,473

6,557

1.56

2.2

3.39

2,220

5,470

9,596

35.16
10,15
9

52.18
18,59
5

-657

-986

-1,199

-1,213

1,563

4,484

8,397

0.21

0.63
12,65
7

1.33
20,59
8

8,038

6.45
1.81
28.5
6,123

9.22
1.98
22.3
5,793

8.59
2.13
24.8
5,573

82.45
37,52
9

6,617
118.9
7
50,85
6

5.68
1.63
27.4
6,522
137.1
8
53,66
6

20.62
59,71
3

8,946

-2,121
16,47
4

-7,452
30,07
7

-9,402
41,45
4

-9,076
44,59
0

-9,813
49,90
0

22.53
81,26
6
11,48
8
69,77
8

23.48
63,17
3
13,16
8
50,00
5

1.41
20,04
9

2.54
20,95
6

4.59
17,01
8

6.31
19,11
1

6.46
29,62
8

7.73

11.82

5,083

8,768

Taking a gander at the financials of the organization we can see that the organization has a positive pattern in its deals and additionally productivity. The offers of the
organization has expanded by 27.86% in 2015 when contrasted with 5.06% in 2014. The gross edge of the organization in 2015 was 40.1% when contrasted with 38.6%
in 2014. The organization's income per offer has additionally expanded alongside the expansion in the profits paid per offer though the quantity of shares remarkable has
diminished in 2015. Taking a gander at the financials of the organization we can see that the execution of the organization is certain. We will have the capacity to break
down the execution of the organization bitterly by dissecting the proportions.

Profitability ratios:

Profitability
Tax Rate %
Net Margin %
Asset Turnover
(Average)
Return on Assets %
Financial Leverage
(Average)
Return on Equity %
Return on Invested

2006- 2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014- 201509
09
09
09
09
09
09
09
09
09
TTM
29.42
30.19
29.89
31.75
24.42
24.22
25.16 26.15
26.13
26.37
25.6
10.3
14.56
14.88
19.19
21.48
23.95
26.67 21.67
21.61
22.85
21.7
1.34
13.83

1.13
16.43

1
14.89

0.99
18.92

1.06
22.84

1.13
27.07

1.07
28.54

0.89
19.34

0.83
18.01

0.89
20.45

0.76
16.52

1.72
22.8
19.61

1.74
28.52
24.84

1.88
27.19
27.19

1.5
31.27
30.22

1.57
35.28
34.69

1.52
41.67
41.04

1.49
42.84
42.01

1.68
30.64
26.08

2.08
33.61
26.2

2.43
46.25
31.32

2.42
37.9
23.45

Capital %
Interest Coverage

369.7
9

140.2
8

99.93

52.64

Return on assets is the gainfulness measure which examination the arrival on the advantages that are put resources into the organization. Return on resource can be
ascertained as net salary isolated by resources. It helps in breaking down that how successfully and effectively the organization is utilizing its advantages for create the
pay. Higher the arrival better is the usage of the advantages by the organization with a specific end goal to create pay. Seeing the past pattern, we can see that the
organization demonstrate a positive pattern from 2006 to 2012, in 2013 and 2014 the arrival on the benefits diminished though in 2015 the arrival on resources of the
organization progressed. This can be a direct result of the expansion in the aggregate resources.

Return on equity is the benefit measure which helps in investigating the arrival on value, it the arrival that the financial specialists or the shareholder's gain on their
venture. Return on value is computed as net wage/value. Taking a gander at the pattern we can see that the organization's arrival on value has expanded over the period
which expresses that the organization can give significant yields to its shareholders

Asset turnover is thought to be proportion of organization's benefits in with respect to its deals. It helps in realizing that how viably and proficiently the organization
can create the deals with the assistance of its advantages. Being an innovation organization, the base of benefits is all the more accordingly the advantage turnover of the
organization is on the lower side. By and large, the organization is utilizing its benefits adequately to produce the deals.

Net margin is the benefit proportion which helps in examining the net salary created by the organization in respect to the deals. The organization's net edge is in a
positive pattern till 2013, however there was a slight lessening in the net wage in 2013 when contrasted with the earlier year, later it demonstrated a positive pattern

Key Ratios ->

Profitability
Margins % of Sales
Revenue
COGS

2006- 2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014- 201509
09
09
09
09
09
09
09
09
09
TTM
100
100
100
100
100
100
100
100
100
100
100
71.02
66.83
64.8
59.86
60.62
59.52
56.13
62.38
61.41
59.94
60.51

Gross Margin
SG&A
R&D
Other
Operating Margin
Net Int Inc & Other
EBT Margin

28.98
12.6
3.69

33.17
12.06
3.18

35.2
10.03
2.96

40.14
9.67
3.11

39.38
8.46
2.73

40.48
7.02
2.24

43.87
6.42
2.16

37.62
6.34
2.62

38.59
6.56
3.3

40.06
6.13
3.45

39.49
6.54
4.4

12.7
1.89
14.59

17.93
2.44
20.37

22.21
1.65
23.86

27.36
0.76
28.12

28.19
0.24
28.42

31.22
0.38
31.6

35.3
0.33
35.63

28.67
0.68
29.35

28.72
0.54
29.26

30.48
0.55
31.03

28.55
0.62
29.16

Generally the gainfulness of the organization is sure with expanding benefits and productive utilization of advantages

Financial health:

Key Ratios -> Financial

Health
Balance Sheet Items (in %)
Cash & Short-Term
Investments
Accounts Receivable
Inventory
Other Current Assets

200609
58.76
7.28
1.57
16.72

200709
60.7
15.9
1.37
8.66

200809
61.89
11.89
1.29
12.6

200909
49.4
10.65
0.96
5.43

201009
34.08
13.2
1.4
6.76

201109
22.3
10.07
0.67
5.62

201209
16.54
10.62
0.45
5.14

201309
19.59
9.97
0.85
4.99

201409
10.82
11.74
0.91
6.09

201509
14.32
10.45
0.81
5.19

Latest
Qtr
20.21
6.23
0.6
3.64

Total Current Assets

84.33
86.62
87.66
66.43
55.44
38.66
32.75
35.4
29.56
30.77
30.68
Net PP&E
7.45
7.23
6.2
6.22
6.34
6.68
8.78
8.02
8.9
7.74
8.33
Intangibles
1.15
1.66
1.24
1.18
1.44
3.81
3.04
2.78
3.78
3.1
2.87
Other Long-Term Assets
7.07
4.49
4.89
26.17
36.78
50.85
55.43
53.8
57.77
58.39
58.12
Total Assets
100
100
100
100
100
100
100
100
100
100
100
Accounts Payable
19.7
19.61
13.95
11.79
15.98
12.57
12.03
10.81
13.02
12.22
8.61
Short-Term Debt
2.72
3.79
5.23
Taxes Payable
0.91
0.28
0.98
0.87
0.58
0.52
Accrued Liabilities
6.92
4.97
9.4
7.2
6.45
6.97
4.76
2.52
3.32
8.67
6.81
Other Short-Term Liabilities
10.99
12.11
12.26
4.32
4.85
3.52
4.23
7.19
7.78
3.08
2006200720082009201020112012201320142015Latest2.73
Total Current Liabilities 09
37.61
36.69
35.61
24.22
09
09
09
09 27.56
09 24.0409 21.8909 21.09 09 27.37 09 27.75 Qtr 23.39
Long-Term
Debt
8.19
12.5
18.41
22.56
Current Ratio
2.24
2.36
2.46
2.74
2.01
1.61
1.5
1.68
1.08
1.11
1.31
Other
Long-Term
Liabilities
4.36
5.98
11.25
9.17
8.87
10.13
10.97
11.03
12.02
12.76
12.64
Quick Ratio
1.76
2.09
2.07
2.48
1.72
1.35
1.24
1.4
0.82
0.89
1.13
Total Liabilities
46.86 1.5
33.39 1.57
36.43 1.52
34.16 1.49
32.86
40.31
51.89
58.91
58.59
Financial
Leverage
1.7241.97 1.7442.67 1.88
1.68
2.08
2.43
2.42
Total Stockholders' Equity
58.03
57.33
53.14
66.61
63.57
65.84
67.14
59.69
48.11
41.09
41.41
Debt/Equity
0.14
0.26
0.45
0.54
Total Liabilities & Equity
100
100
100
100
100
100
100
100
100
100
100

Financial health is otherwise called dissolvability proportions which helps in telling the respectability of the firm. Taking a gander at the monetary wellbeing of the
organization, we can see that till 2012 the organization was an aggregate value based organization and did not hold any long haul obligation, from 2013, the organization
took the obligation and the extent of obligation has expanded over the time

Debt to asset ratio helps in telling the extent of obligation held by the organization in respect to resources. In 2014, the obligation resource proportion of the
organization was 51.89% while in 2015 the extent of obligation has expanded to 58.91%. We can say that the organization's reliance on obligation has expanded which
is considered as a shortcoming to the organization.
The debt to equity ratio has likewise expanded which expresses that the reliance on obligation has expanded for the organization. considering the money related
wellbeing as far as dissolvability, it has diminished over the period.

Efficiency ratios:

Productivity proportions are the proportions which helps in investigating that how viably and proficiently the organization is utilizing its resources for create deals. The
organization needs to use its resources for maximum capacity to create great returns.
Accounts receivable turnover ratio helps in investigating that how effectively the organization can change over its collectibles to money. It helps in breaking down that
how viably and productively the organization deals with its credit issues and how is the credit strategy of the organization. The records receivable proportion of the
organization has expanded in 2015 which shows that the collectible of the organization has made strides. A low proportion shows that the organization has poor credit
i.e. gathering procedure and it needs to consider its credit approach. A high records receivable turnover expresses that the organization more often than not works on
money premise.
Stock turnover helps in breaking down the effectiveness of the firm, it helps in dissecting how viably stock is sold, i.e. how frequently the organization can deal and
supplant the stock over the period. The organization has low stock turnover which expresses that the organization has poor deals. Apple has high stock turnover which
expresses that the organization has great deals and can supplant its stock as often as possible in light of high deals.

Resource turnover is thought to be proportion of organization's advantages in respect to its deals. It helps in realizing that how adequately and proficiently the
organization can produce the deals with the assistance of its benefits. Being an innovation organization, the base of advantages is all the more subsequently the benefit
turnover of the organization is on the lower side. By and large, the organization is utilizing its benefits viably to produce the deals.

Liquidity ratios:
Liquidity proportions are the proportions which helps in investigating the fleeting validity of the firm. The present proportion helps in investigating the extent of current
advantages for current liabilities. The perfect proportion of current proportion is 2, which expresses that the organization can pay off the transient obligations effectively.
Taking a gander at the present proportion of the organization we can see that the organization's present proportion is 1.08 for the year 2014 and 1.11 for the year 2015
i.e. the organization can cover its present liabilities around 1.11 times.
Speedy proportion incorporates the advantages that can be promptly changed over to money, it does exclude prepaid costs and inventories. The extent of stock held by
the organization is less being a mechanical firm, in this manner the snappy proportion of the organization is marginally not exactly the present proportion

Stock performance:

Helps in breaking down the execution of the organization's stock in the business sector. It can be seen that the stock development was high in 2007 and 2009. From that
point it has seen diminishing pattern. This is a result of the expanded rivalry in the business sector which has lead the execution of the stock decline over the timeframe.

Reference:
Morningstar, Financial data and ratios [Online], Available at:http://financials.morningstar.com/ratios/r.html?
t=AAPL&region=USA&culture=en_US , [Accessed on 30.Sep.2016]

Shareholder, Apple 10-K report [Online], Available at:

http://files.shareholder.com/downloads/AAPL/1911800766x0xS1193125-15-356351/320193/filing.pdf , [Accessed on 30.Sep.2016]
Clarke, D. What is the cash flow statement and why is it important? Available at: https://www.kashoo.com/blog/what-is-the-cash-flow-statementand-why-is-it-important , [Accessed on 30.Sep.2016]

Schwartz, S. and LLP, H. (2012) Importance of the cash flow statement: Shepard Schwartz & Harris LLP. Available at: https://www.ssh-cpa.com/newsroompublications-dont-overlook-the-cash-flow-statement.htm , [Accessed on 30.Sep.2016]