Ratio Analysis of Apple

Abstract

Apple Inc. is a technology company that has established itself as a market leader in the technology industry over the years. After conducting numerous financial ratios, it is evident that the company has achieved its success by efficiently utilizing its assets and equity. Financial ratios analysis was undertaken using data downloaded from Yahoo Finance. All financial ratios were computed over four years between 2016 and 2020. The results were then recorded in a table and a line graph showing the trend line plotted. Through liquidity ratio analysis, this report determined that the company is financially healthy and has the ability to meet its short-term obligations with ease. The company has also succeeded in creating value for the shareholders by having a positive and growing return on investment. The company’s activity ratios depict how it turns its stocks quickly and efficiently into cash. On the other hand, an analysis of the company’s debt ratios indicates that the company does not rely heavily on debt to finance its operations.