Question

1. Pick two publicly traded companies in the same industry.

Apple Inc. and Microsoft

2. Calculate the ratios for 2015 and 2016 that you deem necessary for each company for two years. Some examples are working capital, current ratio, current cash debt coverage ratio, inventory turnover ratio, days in inventory, receivables turnover ratio, average collection period, debt to asset ratio, cash debt coverage ratio, times interest earned ratio, free cash flow, earnings per share, price earnings ratio, gross profit rate, profit margin ratio, return on assets, return on equity, payout ratio, asset turnover ratio

3. Write a analysis on which company you would buy stock in and why. Be sure to use all the ratios calculated in item 2 in your analysis if not other ratios.

Answer 1

Ine. Current Ratio of Apple for 2015 - Total current Assets) Tokal Current Cabilities & $89.38 Billion $ 80.6) Billion Current Ratio 12 Current Assets Current webelty & 1.109 89.38 80.61 Tor 2016 Carret Retio a ad 1.353 $ 106.87 B $79.01B

Earning fer 2015 a 2016 a Decrease Share » $9.28 Per $ 8.35 Per i eps Roto Share share by 10.02 Return on oporty Net Income Shareholder's equity 21 buns teater) tunn 2015 2 Fol! $ 53.39B Alto & 44.73% 1 $ 119.36B 2016 $ 45.69B $ 128.5B - & 35.56 70

Microsoft Carrend Rebot Current Ansell cuorel Cutlet NON rise $122797 nuleon & ua 647 nullos & 2.47 ooh 20162) & 1396 & 139660 nullion с 9 до ишон. 2.35 Parning ler Share on - - 2015 2016 $ $ 1.49 2.12 Per Per Share share - OPS is thereased Return on equity Net encour sherehelder's eluty 2015 a 15. 237 $12, 193 m ) $80,083 Mi 2016 2 & 23.33 of 8 16 798 nella $ 1,977 rule

(3.) we should enrest is a - Apple Ine because as Calenlated above the Return equity the Apple Inc. More than the Microsoft Also the the in the earning Per Apple Inc is Microsoft do despite the year 2016. share at More than de creesing Therefore in Apple Purestor The should Iurest