written assignment attached below you just have to edit and make it longer and stronger

written assignment attached below you just have to edit and make it longer and stronger


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Financial Management for Apple Inc.
Introduction
Significantly, S&P 500 index is standard market measure for the 500 biggest corporations
in US that are mostly and publicly merchandised firms. The S&P 500 index is rated as the best
gauge for U.S market equities and market value since the attributed companies regulate the
market value according to the amount of shares available for investors in the public market.
Considerably, Apple Inc. is one among the companies that constitute the U.S S&P 500 index that
is based in Cupertino, California. Apple Inc. The report seeks to introduce the Apple Inc. and
present its financial management.
Introduction of Apple Inc.
`Apple Inc. is an Information and Technology Corporation that was founded in 1977.
Apple Inc. specializes in the manufacture and production of information and high-tech devices,
for instance, mobile phones and laptops. Moreover, the Apple Inc. offers technology storage,
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hardware and peripherals. Apple Inc. devices are among the widely traded high-tech in the U.S
and global market. The availability and the durability of the devices has won the Apple Inc. a
large client-base in the global market, for instance, Apple Inc. has won my loyalty as a
consumer since I use Apple phone. The phone easily accesses internet and has larger capacity to
store apps and files.
Nearly, all global sectors of economy face competition but currently the rate of
competition is higher among the Information and Technology industry. The advancement in
technology has prompted innovation and invention in the industry. The Apple Inc. is faced by
stiff competition from other Information and Technology firms offering similar
products/substitutes, for instance, Samsung is a worthy competitor of the Apple Inc. in the
Information and Technology industry.
Progressively, the growth of Apple Inc. is positive since the evaluation of the
performance against the historical data indicates increased profits, assets and sales. However, the
success of a commercial corporation is not merely determined by profits, sales and the assets
achieved but a deeper insight is sensitive to examine financial statements and ratios that
determine short-term long-term success of the corporation. Consequently, the profitability,
liquidity, income and leverage ratios for Apple Inc. offer a clear insight for a positive future
recommendation for the Company.
Calculation of the rations for the Apple Inc. (Wall Street Journal)
Liquidity coverage ratios are sensitive for the determination of short-term performance of
the Apple Inc. as the ratios constitute information about suppliers and bankers. The management
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has the task of meeting the obligations to creditors and government agencies. Liquidity coverage
ratios include current ratio, quick ratio and absolute liquidity ratio.
Current ratio = current assets/current liabilities
286.53B/255.83B = 1.12
Activity and efficiency ratios determine the effectiveness of the management of the
company. The ratios include stock turnover ratio, current assets turnover and fixed assets
turnover.
Current asset turnover ratio=sales/current assets
206.30B/286.53B=0.72
Solvency and leverage components ratio help to determine the contributions owners and
the creditors to the business. The ratios include equity ratio and debt to equity ratio
Debt to equity ratio=debt + preferred long term/common shareholders’ equity
106.85B/87.48B=1.22
Solvency coverage ratios help to determine the number of times revenues may cover
interest on fixed payments for long term debts, for instance, times interest earned ratio
Times interest earned ratio= Earnings before interest and taxes/Interest
71230000/-733000= -971
Profit margin ratios indicate the effectiveness of the management according to revenue
realized on investments and sales, for instance, gross profit on net sales ratio
Net sales – cost of goods sold/nets sales= gross profit on net sales ratio
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265595000-163756000/101839000= 1
Stockholder ratios is the percentage that divides the total amount of shareholders by the
total assets of the firm that denotes the extent of claim that shareholders have on the assets, for
instance, earnings per share ratio
Earnings per share ratio=net profit after interest and tax/number of ordinary shares
59531000/35018235=1.7%
Analysis
The analysis of the financial ratios of the Apple Inc. offers a clear insight of the
progressiveness of the company. The short-term financial ratios, for instance, current ratio that
depicts the obligations of the company to creditors denotes that the Apple Inc. is paying the
creditors and therefore continuity of the business since suppliers are well-paid. Moreover, the
solvency coverage ratios uphold that Apple Inc. has the capacity to meet its interests on long
term payments and debts. The profitability ratios further denote that the operations of the Apple
Inc. realize revenues. A close examination of the Samsung Corporation financial ratios portray
that Apple Inc. is facing strong competition since the profitability rations of the Samsung
Corporation are favorable for a shareholder.
Recommendation
Apple Inc. should facilitate research on market specifications to increase its client base to
combat competition. Moreover, the management should facilitate innovations on unique products
to increases its sales and support its capacity to pay interests on fixed payments and long term-
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term debts. Finally, the effectiveness of the management has significant impacts on the progress
of Apple Inc. and thus professionalism is a recommendation for the management.
Module 02: Financial Statement and Ratio Analysis
S&P 500 Company Analysis
Learning Objectives:
• Describe the types of financial statements, their components, and purposes.
• Analyze a firm’s financial statements, cash flow values, risks, and returns.
• Analyze financial ratios and their relationships with a firm’s performance.
Module 02 introduced the four main financial statements, financial ratios, and analysis. For this activity, consider
a public for-profit corporation that is listed on the Standard and Poor’s (S&P) 500 stock index. The S&P 500 index
contains the largest publicly listed companies in the United States and is typically considered a measure of the
overall market. This will likely ensure that the company you consider has reported numerous financial
statements. You may need to do an Internet search of the companies within the S&P 500. Sources like Yahoo!
Finance are listed below as tools to find the ticker symbol and relevant information. There are three
components to this activity: (10 points on the basis of completeness and quality of work submitted.)
1) Introduce the company and determine its industry. Have you used or heard of its products or services?
Is there a lot of competition in this industry? Is the industry growing or declining? What are your
thoughts on the short-term and long-term growth for this company and industry? (30 points)
2) For the company you selected, calculate one ratio from each of the following sections in Module 02:
• Liquidity coverage ratios
• Activity and efficiency ratios
• Solvency and leverage component ratios
• Solvency coverage ratios
• Profit margins
• Stockholder ratios
Provide the numerator and denominator for these ratios. (30 points)
3) Given the financial ratios you calculated and the company outlook, consider a recommendation for the
stock. For this assignment, use the following choices: (30 points)
• Buy (typically positive opinions on outlook and ratios from the company)
• Sell (typically negative opinions on outlook and/or ratios)
• Neutral (mixed results across ratios and outlook)
Consider industry and competitor ratios for this analysis. This comparison should help with your
recommendation analysis.
This activity should be 1−2 typed pages addressing the three components. Feel free to use these sources:
• MSU’s Stock Trak Trading Platform: https://morgantrading.stocktrak.com/
• MSU’s Bloomberg Terminals: Accessible by visiting the Capital Markets Lab (GSBM 3rd floor)
• Yahoo! Finance: http://finance.yahoo.com/
• CNBC: http://www.cnbc.com/
• The Wall Street Journal: https://www.wsj.com/
• CNNMoney: http://money.cnn.com/
• MarketWatch: http://www.marketwatch.com

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