Trusted by 2+ million users, 1000+ happy students everyday
Showing pages 1 to 2 of 5 pages
Apple Inc.In the present case, the company has been analyzed from different parameters by analyzing ratiosof past two years and comparing these ratios with industry averages so that differences can beknown and possible action can be taken so as to correct the position of the company. Thedifferent ratios that have been used for the purpose of analysis are Debt ratio, Return on assets,Accounts Receivable Turnover, Inventory turnover, Leverage ratio, gross profit margin etc. sothat the position of the company can be analyzed whether the company is earning sufficientprofits or the dependent of the company on outside funds is more or less because it helps inanalyzing the financial position of the company.The indicators that have been used for the purpose of the investment in the company are thefinancial indicators and non-financial indicators that help in analyzing the company for theinvestment purpose while the financial indicator include analyzing the company on the basis ofgrowth whether the company sales as well as expansion of business has been increased in thepast years overall in terms of diversion of products , business expansion in terms of area atwhich it renders the service etc. which in the present case in Apple Inc. has been seen that thegrowth of the company is substantial as both the revenue and product diversion has increasedover the years which shows that the company in phase of growth which is a good option for thepurpose of investment. The other factor which is to be considered is profitability of the businesswhich is to be analyzed whether the operations of the business provide profitability to thebusiness and whether the profits in the past years have been increased or decreased from theoperations and whether the profits earned by the company is compared to the similar companiesso as to compare the profits earned and analysis whether the profits are reasonable or not and to1
check the trend of the profits of the company whether it is increasing or decreasing for thepurpose of investment in the company.The factors which should be considered along with above mentioned factors are liquidity of thecompany whether the company has sufficient funds to meet its short term obligation of thecompany which can be analyzed by preparing the cash flow statement which shows that whetherthe company is having cash surplus/deficit from the operation of the company in a particularperiod which shows the liquidity position of the company whether there are sufficient funds ornot for the operations of the company and other points which should be considered are whetherthe company is earning sufficient return on the assets employed in the company which should becalculated by return on assets ratio and should be compare of different years so as to analyze thereturn for the purpose of analyzing the efficiency of the company which in the present case ofApple Inc. has been analyzed that the company is providing higher return on the assets of thecompany as compared to the industry average so for the purpose of the investment it can be saidthat it a good option for the purpose of the investment in the company.The factors which should be considered along with financial indicators are non financialindicators which indicate the measure which cannot be measured in terms of money but arerelevant for the purpose of investment in the company which is company reputation in themarket in terms of its product its quality and value which in the present case of Apple Inc. hasbeen analyzed that the company enjoys a high reputation in terms of its product and technologyand has a significant share in the market and which is increasing day by day and which can be agood option for the purpose of investment in the company.2
Found this document preview useful?
You are reading a preview Upload your documents to download or Become a Desklib member to get accesss