Question

"Measuring Firm performance."

Then, each of you pick a firm, and do out the following:

Find and report its current P/E ratio.

Calculate and report on any two of its ratios: its ROE, CR, D/E ratio or TAT for two years. Ideally use 2016 and 2017, and if 2017 numbers are unavailable, use 2015 and 2016.

Write a brief (100 word) paragraph comparing its performance over the two years:2016 and 2017 (or 2015 and 2016).

Everyone please use a different firm, if a teammate has used it, you cannot. The firms are:

AMD

Apple

Bank of America

Berkshire Hathaway

CVS (Caremark)

Disney

Exxon-Mobil

Facebook

Ford

GM

Google

Home Depot

Intel

Lowes

Microsoft

New York Times (NYTCO)

Pfizer

Proctor & Gamble

Twitter

Viacom

Walmart

Yahoo

Answer 1

Measuring Apple Inc. Performance

The P/E ratio is widely used stock evaluations measure. The Price Earning (P/E) ratio of Apple Inc. is 17.87 for 29 June 2018.

The ROE i.e., Return On Equity of Apple in the year 2017 on 30th September was 36.07% and in the year 2016 on 24 September, it was 35.62%. The ROE has increased from year 2016 to 2017 which shows that the more return has been given in year 2017 on the equity. The increasing ROE shows that either the profit was boosted or the assets has been more efficiently used, to increase sales.

The D/E ratio of Apple in year 2017 on 30th September was 0.86 and it was 0.68 in the year 2016 on 24th September. This shows that debt to equtiy ratio has also increased from year 2016 to 2017. The ideal debt to equity ratio is 2:1. The increase in debt ratio from year to 2016 to 2017 is favorable but not too much as still it is low.  

The Apple overall performance from year 2016 to 2017 is better.