Question

Using the Annual Report of a publicly-traded company of your choosing, answer the following questions in this discussion.

• What are the Sales (also called Net Sales, Net Revenue, or Operating Revenue) for the most recent three years? This is normally the largest number.
• What are the Net Incomes (also called Net Earnings) for the most recent three years?
• What are the average total assets?
• Calculate the return on assets.
• How does the company's return on assets compare to its competitors?
• How well do you think this company is operating? Explain your answer.

Answer 1

Solution:

Here, the company is Apple Inc. which is one of the most famous public US company.

(A) The net income for the most recent three years is given below:-

2014: $182795 Million

2015: $ 233715 Million

2016: $ 215639 Million

Note: The net sales has increased by 27% from 2014 to 2015 and then decreased by 7.73% from 2015 to 2016.

(b) The net income of Apple company for the recent years is given below:-

2014: $ 39510 Million

2015: $ 53394 Million

2016: $ 45687 Million

Note: The net income has increased by 35% from 2014 to 2015 and then decreased by 14.43 % from 2015 to 2016.

(C) The average total assets turnover of the Apple inc. is given below:-

2014: 0.83 times

2015:0.89 times

2016: 0.70 times

Note: The average asset turnover is increased by 7.22% and then decreased by 23.75%.

(D) The return on assets of Apple Inc. is quite comprehensive than its competitors like Sony and Samsung Mobiles. In 2016, the return on assets of the apple company is 14.93% whereas the return on assets of Sony Company is 0.91% and of Samsung company is 8.89%

(E) The Apple company is operating comprehensive well in terms of liquidity, profitability, solvency as well as marketability individually as well as in comparison to its competitors too.