StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Essay example - ratio analysis

ratio analysis Essay example
Finance & Accounting
Pages 10 (2510 words)
Download 0
Name Professor’s Name Course Date RATIO ANALYSIS FOR APPLE INC. Ratio analysis is a technique in finance analysis and it is very important. This is because it involves a conversion of financial statement quantities or figures to aid comparison in a meaningful manner (Dess 2012)…

Extract of sample

The former is used to compare the performance of the firm within itself in terms of aspects such as improvement in management skills and finance handling. The latter is used to compare the performance of the firm within its industry of operation. Such comparisons will consider fundamental aspects of operations like profitability. In profitability, an increase or decrease is established and the causes of each including what can be done to stabilize profitability and grow it further. The liquidity of the firm is also quite fundamental as this would enable management know how to plan operations and sources of financing. Therefore, ratio analysis is used in the determination of trends as it strives to expose the strengths and weaknesses of the company. Ratios can be either favorable or unfavorable depending on whether the increase or decrease is in the desired direction (Dess 2012). For our analysis of Apple Incorporation’s financial statement of the year 2012 compared to that of the year 2011, we will categorize ratios into the following - Profitability Ratios; Liquidity ratios; Efficiency Ratios and Capital structure ratios. Profitability Ratios They measure the ability of the company to generate profits from their asset investments. Such ratios include- Gross Profit margin, which is the profit before expenses generated by sales as a percentage. ...
Download paper
Not exactly what you need?

Related papers

Managing Finance: Financial ratio analysis
In the last section of the paper we analyze how the firm should management its resources efficiently so as to achieve the optimal profit level. All this practices and analyses are undertaken so to manage the finances efficiently. Section A Financial ratio analysis: Ratio analysis helps in evaluating the financial soundness of the organization. In analyzing the financial statement of a company one…
15 pages (3765 words)
Ratio Analysis
This paper will shed light upon the financial ratios of Apple, how the company will fare in the future will also be comprehensively analyzed. ROI stands for return on investment, Apple’s ROI matches DELL which is great news for the company, return on investment goes to show that the products have been selling very well in the market. The sales growth of Apple has also seen a significant rise in…
4 pages (1004 words)
Ratio Analysis
Suppose we want to assess the financial health of a very large or small firm, how can we analyze the firm so our analysis can provide an insight into the basic prospects for profitability of a firm? Is the firm losing or is it profitable? Are there prospects for making the firm profitable? Is the firm worth buying? Should we sell the firm? If we are to sell the firm, at what price should our…
3 pages (753 words)
Ratio Analysis
The paper uses Profitability, efficiency, liquidity and shareholder ratios as the basic tools. The more complex tools like IRR, WACC etc are ignored to keep the analysis simple and meaningful. In addition, the paper identifies the Key Performance indicators (KPIs) of the company and highlights the basic steps taken by the company to achieve the KPI targets. The company’s current year’s results…
6 pages (1506 words)
Ratio Analysis
Ratio analysis further simplifies the information and allows for a longitudinal and cross sectional analysis of an organization’s performance. I, in this paper, perform ratio analysis of IBM financial statements for the accounting period ending in the years 2010, 2011, and 2012, and discuss the computed ratios. Accounting ratios Ratio analysis compares different income statement and balance…
Ratio Analysis
The key conclusions shown in this report are that, Tasso plc is very strong financially and that it is growing steadily in the market position this has been possible because of the huge fixed asset in property. Another reason is due to their dismissive approach towards law and regulations. This approach has resulted in an exceptionally good financial performance and efficiencies. Based on the…
6 pages (1506 words)
Ratio Analysis
In addition, the company performance was higher in reference to industrial average figures. Whereby, the key performance indicators such as; number of visitors, basket value and gross profit margin were put forth. On the contrary, a valuation of the uses of KPIs in assessing organization performance was discussed. The advantages and limitation of using financial ratios as a technique of assessing…
6 pages (1506 words)