Question

Questions:

Apple Inc. - Analysis of Fiscal 2017 Annual Report Apple Inc. is an American multinational technology company that designs, develops, and sells consumer electronics, computer software, and online services. The company's hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, and the Apple Watch smartwatch. Apple's consumer software includes the macOS and iOS operating systems, the iTunes media player, and the Safari web browser. Its online services include the iTunes Store, Apple Music, and iCloud. Established on April 1, 1976 in Cupertino, California, the company was previously named Apple Computer, Inc., for its first 30 years, but removed the word "Computer" in 2007, to reflect the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers. Apple is the world's largest information technology company by revenue and the world's second-largest mobile phone manufacturer after Samsung. In August 2018, Apple became the first U.S. company to be valued at over US$1 trillion. The company employs 132,000 full-time employees (2018). 16h : Apple's worldwide annual revenue totaled $266 billion for the 2018 fiscal year. The company enjoys a high level of brand loyalty and has been repeatedly ranked as the world's most valuable brand. Answer the following questions from Apple's 2017 Financial Report (found in the Appendix of Wild, Larson & Chiappetta, pages A-2 to A-5). The purpose of this assignment is to familiarize you with a company's annual report and basic financial statement analysis. 1. What was the value of net sales for Apple for the fiscal year ended September 30, 2017? Be precise when giving your answer. Remember that the figures shown are in $millions!

Report:

Answer 1

net sales for September 30, 2017 was $229,234 millions
current ratio	current assets / current liabilities
	2017 ($ millions)	2016 ($ millions)
total current assets (provided in the balance sheet)	128,645	106,869
total current liabilities (provided in the balance sheet)	100,814	79,006
ratio	1.28	1.35
quick ratio	quick(liquid assets) / current liabilities
quick(liquid assets)	current assets - inventories
	2017 ($ millions)	2016 ($ millions)
total current assets (provided in the balance sheet)	128,645	106,869
less:inventories	-4,855	-2,132
quick assets	123,790	104,737
total current liabilities (provided in the balance sheet)	100,814	79,006
ratio	1.23	1.33
inventory turnover ratio	cost of goods sold / average inventories
average inventories	(opening + closing) / 2
	2017 ($ millions)
cost of goods sold	141,048
beginning inventory	2,132
ending invenotry	4,855
average inventories	3,493.5
ratio	40.37
accounts receivable turnover ratio	sales / average accounts receivable
	2017 ($ millions)
sales	229,234
beginning accounts receivable	15,754
ending accounts receivable	17,874
average accounts receivable	16,814
turnover ratio	13.63
days sales in inventory	(ending inventories / cost of goods sold) * 365
	2017 ($ millions)
ending inventories	4,855
cost of goods sold	141,048
ratio (in days)	12.56
days sales uncollected	(accounts receivable /net sales)*365
	2017 ($ millions)
ending accounts receivable	17,874
net sales	229,234
ratio (in days)	28.46
total assets turnover	net sales / avg. total assets
	2017 ($ millions)
net sales	229,234
opening assets	321,686
ending assets	375,319
avg. total assets	348,502.5
ratio	0.66
debt-to-equity ratio	total liabilities / total stockholders equity
	2017 ($ millions)	2016 ($ millions)
total liabilities	241,272	193,437
total stockholders equity	134,047	128,249
ratio	1.80	1.51
profit margin ratio	net income / net sales
	2017 ($ millions)	2016 ($ millions)
net income	48,351	45,687
net sales	229,234	215,639
ratio	21.09%	21.19%
return on total assets	net income / avg.assets
	2017 ($ millions)
net income	48,351
opening assets	321,686
closing assets	375,319
avg. assets	348,502.5
ratio	13.87%
gross margin ratio	(net sales - c.o.g.s)/net sales
	2017 ($ millions)
net sales	229,234
cost of goods sold	141,048
ratio	38.47%
basic earnings per common share for 2017	$9.27 per share
return on common stockholders equity	(net income - preferred dividends)/avg.stockholders equity
	2017 ($ millions)
net income	48,351
preferred dividends	0
opening stockholder equity	128,249
closing stockholder equity	134,047
avg.stockholder equity	131,148
ratio	36.87%
dividend yield ratio	annual cash dividends per share / market price per share
	2017	2016
annual cash dividend per share	2.4	2.18
marker price per share	154	113
ratio	1.56%	1.93%