BA541

Financial Management and Analysis

FINANCIAL RATIO ANALYSIS
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 Company Information

Apple Corps is multinational

company founded in 1999 by Steve
Jobs in USA
Apple Co provides the platform for Tim Cook CEO & Director
develop new hardware in the United
Arthur D. Levinson Founder & Chief Strategy Officer
States.
The company operates through a Luca Maestri Chief Financial Officer
single segment of providing phones to Jeff Williams Co-Founder & Global CTO
customers
It has a platform to deliver Jony Ive  Chief Operating Officer
capabilities for data analysis and
management for developing customer
services with offering new products
and arrangement of different practices
to manage business ideas.
 Company information

Samsung was founded as grocery

trader store in1948 by Lee Byung-
Chull
 It continue its operations in 1990 as Name Title
the global electronic company and Lee Kun-hee Exec. Chairman
consider preferences Lee Jae-yong CEO & Director
The company is affiliated with
Roh Sr. VP & CFO
expansion of global electronic market
and consider the proper platform for
meting proper requirements.
Samsung offers excellent services to
custmers and range of practices in
order to indicate diferent plan
preferences and monitor goals.
 Financial Ratio analysis
FINANCIAL RATIOS   Apple Samsung
FIRM LIQUIDITY   1/31/2018 1/31/2017 1/31/2016 2/2/2018 2/3/2017 1/29/2016

Current Ratio Current assets /Current Liabilities 1.1239 1.2761 1.328 2.573 1.98 2.292

Acid Test Ratio (Cash+Accounts receivables)/Current Liabilities 0.466 0.4299 0.3703 2.15 1.33 2.42

Days in Receivables Accounts Receivables/Daily Credit sales

OR
(Accounts Receivables/Annual revenue)*365 67.3353 56.8007 49.52 12.32 53.53 53.434

Accounts Receivable Turnover Annual Credit Sales/Accounts Receivable 5.42 6.42 7.38 7.09 5.43 5.45

Days in Inventory Inventory/Daily Cost of Goods sold NA NA NA NA NA NA

Inventory Turnover Cost Of Goods Sold/Inventory 41.39 29.031 7.36 NA NA NA

 Financial Ratio Analysis
OPERATING PROFITABILITY

Operating Return on Assets (Operating Profits/Total Assets)*100 26.42 26.76 27.84 0.243665 0.162973 0.1001065

Operating Profit Margin Operating Profits/Sales

OR

Revenue-Cost of Goods Sold/Revenue NA NA NA NA NA NA

Total asset Turnover Sales/Total Assets 0.73 0.623 0.643 0.683 0.2917 0.6074

Accounts Receivables
Turnover Annual Credit Sales/Accounts Receivable 5.42 6.42 7.38 7.09 5.43 5.45

A high turnover ratio means your company is efficiently collecting debt and managing accounts receivable.

Inventory Turnover Cost Of Goods Sold/Inventory 41.39 29.031 7.36 NA NA NA

Fixed Assets Turnover Sales/Net Fixed Assets 2.35510191 2.8115077 0.8214992 0.647591 0.528555 0.3609895
 Financial Ratio Analysis
FINANCING DECISIONS

Debt Ratio Total Debt/Total Assets NA NA NA NA NA NA

Times Interest Earned Operating profits/Interest NA NA NA NA NA NA

Ability of an organization to pay its debt obligations

RETURN ON EQUITY

Return on Equity Net income/Total Common Equity 55.56 36 35.06 19.53 12.34 19.42

Check for the Cash Flow as well

 FINANCIAL RATIOS   CLOUDERA PIVOTAL

FIRM LIQUIDITY   1/31/2018 1/31/2017 1/31/2016 2/2/2018 2/3/2017 1/29/2016

2.29
1 Current Ratio Current assets /Current Liabilities 2.292 2.292 2.292 2 2.292 2.292 2.292
Both companies have abilities to pay current and short term debts for meeting proper requirements and indicate
different preferences.

2 Acid Test Ratio

(Cash+Accounts receivables)/Current
Liabilities 0.466 0.4299 0.3703 2.15
Acid test ratio indicate the current business preferences of business with meeting proper requirements and goals for achiving operations.
1.33 2.42
Evaluation
3 Days in Receivables Accounts Receivables/Daily Credit sales
and analysis
OR

(Accounts Receivables/Annual
revenue)*365 67.3353 56.8007 49.52 12.32 53.53 53.434

Accounts Receivable
4 Turnover Annual Credit Sales/Accounts Receivable 5.42 6.42 7.38 7.09 5.43 5.45 5.42
A high turnover ratio means your company is efficiently collecting debt and managing accounts receivable.

5 Days in Inventory Inventory/Daily Cost of Goods sold NA NA NA NA NA NA NA

41.3
6 Inventory Turnover Cost Of Goods Sold/Inventory 41.39 29.031 7.36 NA NA NA 9
 OPERATING PROFITABILITY

0.243 0.162 0.100 26.4

7 Operating Return on Assets (Operating Profits/Total Assets)*100 26.42 26.76 27.84 665 973 1065 2
Operating return on assets can tell how much assets are available to meet the proper requirements.

8 Operating Profit Margin Operating Profits/Sales

OR

Revenue-Cost of Goods Sold/Revenue NA NA NA NA NA NA NA

Evaluation
and analysis
How much profit a company can earn to meet the proper indication plan and requirement for analysis and operations.

0.291 0.607
9 Total asset Turnover Sales/Total Assets 0.73 0.623 0.643 0.683 7 4 0.73
The higher the ratio the higher will be requirements for business success

Annual Credit Sales/Accounts

10 Accounts Receivables Turnover Receivable 2.8 2.6 3.4 2.9 2.11 2.86 5.38 3.4
The higher the ratio the effectiveness of business returns would be available

11 Inventory Turnover Cost Of Goods Sold/Inventory 5.42 6.42 7.38 7.09 5.43 5.45 5.42

12 Fixed Assets Turnover Sales/Net Fixed Assets 2.36 2.81 0.82 0.6 0.5 0.4
Higher is the effective ratio
 FINANCING
DECISIONS

13 Debt Ratio Total Debt/Total Assets NA NA NA NA NA NA

Evaluation
and analysis
Times Interest
14 Earned Operating profits/Interest NA NA NA NA NA NA

Ability of an organization to pay its debt

obligations

RETURN ON
EQUITY

Net income/Total Common

15 Return on Equity Equity 55.56 36 35.06 19.53 12.34 19.42 55.56

Check for the Cash Flow as well

 Conclusion

• Thus, the performance is based on highlighted plan

for meeting proper preferences
• The mobile phones are growing well and this industry
has the effective financial preferences of business.
• This can help to meet the average plan for 3 years of
meeting proper requirements.
 References

https://www.marketwatch.com/investing/stock/ssnlf/profile
https://
www.macrotrends.net/stocks/charts/AAPL/apple/financial-ra
tios