09 Feb Using the same company and annual reports that you chose in your week 1 (the company is APPLE)? Calculate the gross profit ratio, operating margin ratio, and net income margin ratio for t
- Using the same company and annual reports that you chose in your week 1 (the company is APPLE)
- Calculate the gross profit ratio, operating margin ratio, and net income margin ratio for the latest two years, and obtain the industry average ratios (if available). You may use the Mergent Online database, or another outside resource of your choice.
- Analyze these ratios and discuss what each of these ratios tells you about the company’s profitability, and how it compares to the industry averages.
- Note any trends in these ratios from year-to-year, and discuss your assessment of the company based on these changes.
- If you were an investor, explain why you would or would not buy stock in the company.
Your response should be a minimum of 200 words
For our first discussion, I have chosen the company Apple Inc. Apple is a company that everyone
knows about in the US and other countries. There is most likely some apple device in almost all
households today. Apple Inc. It manufactures computers, tablets, smartphones, smartwatches,
and computer software.
Current assets divided by current liabilities calculate the current ratio. For the years 2021 and
2020, they are as follows.
2021 1.0
2020 1.4
If you notice, there is a decrease between the two years. However, it is not enough to be worried.
The profit margin ratio is when the sales percentage becomes a profit for the company. If the
yield is high, it shows that your business is doing well and can pay for itself and then some. To
calculate the profit margin ratio, you must divide net income by net sales.
2021 26.6%
2020 20.9%
From the two numbers, you notice that from 2020 to 2021, the margin has risen by over five
percent. This could be due to many reasons, but it was primarily due to sales.
Management Discussion
In the discussion for this company, the pandemic was the topic of conversation and how it
affected the company. However, what was done to help with it? Stores were closed temporarily,
and individuals were forced to work remotely. The company continued to move forward.
Auditor & Assessment
Since 2015, Ernst & Young LLP has conducted Apple’s audit. According to accounting, the
company is positive and will remain firm. They were causing Apple to be a good company in all
standings. If I were asked to rate this company and give my thoughts, I would say that the
company is in an excellent situation. Furthermore, we will continue to move forward positively
with the new products and their software continuing to get better. I say this is a positive
investment.
Reference: Porter, G., & Norton, C. (2018). Using financial accounting information: The alternative to
debits and credits (10th ed.). Retrieved from https://www.cengage.comLinks to an external site.
Apple Inc Retrieved from: https://www.sec.gov/Archives/edgar/data/320193/000032019319000119/a10-
k20199282019.htm Links to an external site.
Report of Ernst & Young Retrieved from: https://yahoo.brand.edgar-
online.com/efxapi/EFX_dll/EDGARpro.dll?FetchFilingHtmlSection1? Links to an external
site.SectionID=10973752-377625-381389&SessionID=K2J4eHhot2Fcjg7
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteEdu. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
Do you need help with this question?
Get assignment help from WriteEdu.com Paper Writing Website and forget about your problems.
WriteEdu provides custom & cheap essay writing 100% original, plagiarism free essays, assignments & dissertations.
With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Chat with us today! We are always waiting to answer all your questions.