Financial
Analysis of Apple
Inc."
Introduction
Brief Overview:
- Apple Inc.: A leading technology company
known for innovation.
- Major Products: iPhone, iPad, Mac computers,
etc.
- Purpose of Analysis: To assess Apple's financial
health and provide insights for investors.
DATA COLLECTION
- Source of Data: Apple's official annual
reports for fiscal years 2021 and 2022.
- Link: [Apple Investor Relations Website]
(https://investor.apple.com/investor-
relations/default.aspx)
KEY RATIOS CALCULATION
Liquidity Ratios:
- Current Ratio (2022): 1.00
- Current Ratio (2021): 1.03
- Quick Ratio (2022): 0.92
- Quick Ratio (2021): 0.91 Profitability Ratios:
- Net Profit Margin (2022): 25%
- Net Profit Margin (2021): 26%
- Return on Equity (ROE) (2022): 109%
- Return on Equity (ROE) (2021): 104%
Solvency Ratio:
- Debt to Equity Ratio (2022): 3.03
- Debt to Equity Ratio (2021): 2.93
GRAPHICAL REPRESENTATION
LIQUIDITY ANALYSIS:
PROFITABILITY ANALYSIS:
SOLVENCY ANALYSIS:
INTERPRETATION OF RATIOS
Liquidity Analysis:
- Current Ratio close to 1 indicates balanced
position.
- Quick Ratio slightly below 1 reflects
adequate liquidity.
Profitability Analysis:
- Strong Net Profit Margin signifies efficient
revenue conversion.
- High ROE indicates effective utilization of
equity for profitability.
Solvency Analysis:
- High Debt to Equity Ratio suggests reliance
on debt financing.
INVESTOR INSIGHTS
Strengths:
- Strong profitability and liquidity.
- Weaknesses:
- High debt levels.
Risks:
- Competition, innovation, supply chain disruptions.
Opportunities:
- New product categories, emerging markets, strategic partnerships.
CONCLUSION AND RECOMMENDATIONS
Summary of Findings: Apple's robust financial health with strengths
and weaknesses identified.
Recommendations: Monitor debt levels closely, assess
competitive landscape, capitalize on growth
opportunities.
Thank you!
