Financial Analysis

Running Head: FINANCILA ANALYSIS 1
FINANCILA ANALYSIS

Running Head: FINANCILA ANALYSIS
Table of Contents
PART 1........................................................................................................................ 3
Part 2.......................................................................................................................... 5
References................................................................................................................. 7

Running Head: FINANCILA ANALYSIS
PART 1
Cash conversion cycle
A) The cash conversion takes a gander at the measure of time an organization takes to sell its
stock, gather its receivables and the time it takes to pay providers. The measurement
demonstrates how effectively an organization is dealing with its working capital and
producing money streams. Apple's money change cycle remained at - 53 days for FY'15,
interestingly, Samsung has a long CCC of near 78 days (Forbes, 2018). This indicates
that the apple company has the Sizeable operations in the retail sector and gets the
payment in the cash whereas the Samsung then again depends to a great extent on
merchants for its buyer gadgets tasks, while its parts business pitches to other purchaser
hardware sellers, who likely require a credit period (Forbes, 2018).
In terms of the Accounts receivable the turnover ratio is 17.2 in case of the Apple and 22
in case of Samsung this suggests that the cash realizing capacity of the Apple is much
finer than the cash realizing capacity of the Samsung, whereas the situation is altogether
opposite in case of the accounts payable as the as the payment capacity of the Apple is
32.8 and that of the Samsung is 6.2. This truly indicates that the company is performing
well in realizing cash yet it’s not making the payment to its suppliers and hence the cash
conversion cycle is negative.
B) The three major risks that are discussed in the Annual report are the risk of the supply
and the pricing, risk of the international operations and the risk of the protection of the
data. The first two risks are termed as the systematic risks, whereas the latter one is
termed as unsystematic as it refers to the risk associated with specific company.
Unsystematic hazard alludes to explicit organization or industry dangers. On the off