EXAMINATION
Financial and Managerial
Accounting (AC 630 B)
FALL TERM 2005
Thursdays
Instructor: Mr. Andreas Rambow
Research Assignment
Financial Analysis: Apple Computer Inc.
Prepared By: Yeo Bee Lin
Date: December 8, 2005
Page 1 of 11
Contents
1. Financial Analysis .........................................................................................3
1.1. Company Overview...................................................................................3
1.2. Ratio Analysis ...........................................................................................4
1.2.1. Profitability .......................................................................................4
i.
Return on Investment ......................................................................4
ii.
Return on Investment (DuPont Model) ............................................4
iii.
Return on Equity..............................................................................5
iv.
Price Earnings Ratio........................................................................6
v.
Dividend Yield, Dividend Payout, and Preferred Dividend Coverage Ratio..........................................6
1.2.2. Working Capital and Measures of Liquidity .....................................6
i.
Working Capital ...............................................................................6
ii.
Current Ratio ...................................................................................6
iii.
Acid-Test Ratio ................................................................................7
1.2.3. Activity (Assets Management) .........................................................7
i.
Total Assets Turnover .....................................................................7
ii.
Inventory Turnover ..........................................................................8
iii.
Number of Days’ Sales in Accounts
Accounting (AC 630 B)
FALL TERM 2005
Thursdays
Instructor: Mr. Andreas Rambow
Research Assignment
Financial Analysis: Apple Computer Inc.
Prepared By: Yeo Bee Lin
Date: December 8, 2005
Page 1 of 11
Contents
1. Financial Analysis .........................................................................................3
1.1. Company Overview...................................................................................3
1.2. Ratio Analysis ...........................................................................................4
1.2.1. Profitability .......................................................................................4
i.
Return on Investment ......................................................................4
ii.
Return on Investment (DuPont Model) ............................................4
iii.
Return on Equity..............................................................................5
iv.
Price Earnings Ratio........................................................................6
v.
Dividend Yield, Dividend Payout, and Preferred Dividend Coverage Ratio..........................................6
1.2.2. Working Capital and Measures of Liquidity .....................................6
i.
Working Capital ...............................................................................6
ii.
Current Ratio ...................................................................................6
iii.
Acid-Test Ratio ................................................................................7
1.2.3. Activity (Assets Management) .........................................................7
i.
Total Assets Turnover .....................................................................7
ii.
Inventory Turnover ..........................................................................8
iii.
Number of Days’ Sales in Accounts