The Performance Of The Apple Company

                Apple Name Institution Date                           APPLE Apple Inc. is an American Technological company that was incorporated on 3^rd January 1977. Since then the company has developed various products, both hardware, and software as well as professional and online services. This paper seeks to analyze the performance of the company for the last two years and also compares its performance with those of other competitors such as Microsoft and Dell. Comparison of the financial ratios for the year ended 24^th September 2016 and 30^thSeptember 2017

	Ratio	Formulae	2017	2016	Deviation
1.	Current Ratio	Current assets/current liabilities	128645000/100814000 127.60%	106869000/79006000 135.27%	-7.67
2	Debt Ratio	Total Debts/Total Assets	241272000/375319000 64.28%	193437000/321686000 60.13%	4.15
3.	Return on Assets	Net income/Total Assets	48351000/375319000 12.88%	45687000/321686000 14.20%	-1.32
4	Gross Profit Margin	Gross Profit/Total Revenue	88186000/229234000 38.46%	84263000/215639000 39.07%	0.61
5	Net Profit margin	Net Income/Total Sales	48351000/229234000 21.09%	45687000/215639000 21.19%	-0.1
6	Equity Multiplier	Total Assets/Total Equity.	375319000/134047000 2.800	321686000/128249000 2.508	0.292
7	Time Interest Earned	Company Earnings(Before interest and taxes)/Total Interest Earned	64089000/0 ∞	61372000/0 ∞	∞
8	Return on Equity	3 Ratio DuPont Method (Net Profit Margin)(Asset Turn over) (Equity Multiplier)	0.2109×0.128×2.800 0.0756=7.56%	0.2119×0.1420×2.508 0.0755=7.55%	0.01
9.	Inventory Turn over	Cost of Goods Sold/Average Inventory.	141048000/3493500 40.37 times.	131376000/2240500 58.64 times.	-18.27

  Analysis Current Ratio. This ratio is the measure used to analyze the company’s capability to finance short-term debts based on the current assets. With a decline of about 7% in 2017, this indicates that Apple had a reduced capability to meet its short-term obligations (Wall Street Journal, 2018). Debt Ratio. It reveals the ability of the company’s assets to finance its debts, for Apple, its two years debt ratio  is above 50%, an indication that more than half of the company’s assets are financed using debts. There was an increase of 4% from 2016 to 64.28% in 2017.             Return on Assets. This ratio measures the ability of the company to deploy assets to generate sales and eventually profits. There was a decline of 1.32 from 2016 to 12.88 %,( Morning Star, 2018).  Indicating decreased ability to utilize the available assets to generate revenue.       Return on Equity. This measures the number of profits the company generates using the money invested by shareholders. These figures, 7.55%, and 7.56% are fairly unfavorable to investors since they depict a low rate at which shareholder investments generate income for the company (Morning Star, 2018). Equity Multiplier. This ratio shows the proportion of company’s assets that are financed or that are owned by the shareholders.In both years the figure is very high, indicating that most of the company’s assets are majorly financed by creditors and therefore the investors own less of the company assets, a situation which worsened in 2017(Morning Star,2018). &nb...