Apple Inc - Accounting Project Ratio Calculation

Introduction of Apple Inc.

Apple Inc. is an American multinational corporation which designs and manufactures consumer electronics and software products. It established in Cupertino, California on April 1 and the company was called "Apple Computer, Inc." for its first 30 years, but in 2007, it changed its name to “Apple Inc.” This change represents Apple’s expansion in their business. Apple started to add consumer electronics into it traditional personal computer business.

Apple Inc.’s products include the iPhone, the Apple watch, the iPod, Macintosh computers and so on. Also, it has software products like Mac OS X operating system, the iTunes media browser and many other software.

Competitors of Apple Inc.

There are many competitors of Apple Inc., however, those companies are not the competitors in every business area. For mobile phones, Samsung and HTC are the competitors. For tablets, Amazon is also the competitor. In computer area, the Microsoft Corporation is the competitor of Apple Inc.

In this project, we will use Microsoft as the main competitor to analysis the performance of Apple Inc.

Ratio Apple Microsoft

ROE 45.25% 14.35%

Net profit margin ratio 22.85% 30.02%

Current ratio 1.11 2.50

Receivables turnover ratio 13.62 times 5.225 times

Times interest earned ratio 127.73 times 23.69 times

Price/ earnings ratio 12.60 29.63

ROA 20.73% 7.44%

Fixed asset turnover ratio 10.85 6.75

Quick ratio 1.08 2.295

Inventory turnover ratio 62.82 times 11.88 times

Debt-to-equity ratio 1.43 1.20

Dividend yield ratio 1.76% 2.81%

Apple:

ROE=53394/ [(111547+119355)*0.5] =45.25%

ROA= (53394+733)/[290479+231839]*0.5=20.73%

Net profit margin ratio=53394/233715=22.85%

Current ratio=89378/80610=1.11

Receivables turnover ratio=233715/ [(16849+17460)*0.5] =13.62 times

Times interest earned ratio=93626/733=127.73 times

Price/ earnings ratio=116.97/9.28=12.60

Fixed asset turnover ratio=233715/ [(22471+20624)*0.5] =10.85

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