Question

I have to calculate ratios of the 16 stated below. I have Apple as my company and I have to use financial data of 2017. I also have to show how the ratios are calculated with steps in text. Then give an explanation on each ratio. Below is the Problem. One would have to access Apple's Annual report for 2017 as I cannot post a link. All of this is done in a Excel Sheet with explanations of each ratio.

Below is the link for the financial statements for Apple Inc. for the fiscal year ending 2017.

When you arrive at this website, please do the following.

First, select SEC Filings, next select Annual Filings using the drop-down arrow labeled All Filings and then select 2017, using the drop-down arrow labeled Year,

You should select the 10-K dated 11/03/2017 and choose to download in PDF, HTML, or Excel format. The PDF format is the best format for searching.

Your final Excel workbook submission should contain the following. You cannot use any other software but Excel to complete this project.

1. 1) Provide a Cover Sheet with your name, the course, the date, my name as your Instructor and the title, Signature Assignment Course Project Overview.

   2) For the Worksheet Profiles Tab prepare a one paragraph description regarding the company assigned to you and their history, product lines or services and any other relevant information.

   3) Compute all 16 ratios for the company you were assigned with supporting calculations and commentary on your Worksheet Ratio Tab. Supporting calculations must be shown as text typed into a different cell. Provide 2 statements for each ratio: FIRST A GENERIC DESCRIPTION OF WHAT THE RATIO MEANS. SECOND WHETHER OR NOT A HIGHER OR LOWER RATIO IS PREFERABLE (or what it depends upon).

   4) You may disregard the Summary and Conclusions Worksheet Tab.

   5) The Bibliography Worksheet Tab should include any resources used in your investigation.

Required Ratios for Final Project Submission

1. Earnings per Share of Common Stock
2. Current Ratio
3. Gross Profit Rate
4. Profit Margin
5. Inventory Turnover
6. Days in Inventory
7. Accounts Receivable Turnover
8. Average Collection Period
9. Asset Turnover
10. Return on Assets (ROA)
11. Debt to assets Ratio
12. Times Interest Earned Ratio
13. Dividend Yield [For the purposes of this ratio, use Yahoo Finance to look up current dividend per share and stock price; just note the date that you looked up this information.]
14. Return on Common Stockholders' Equity (ROE)
15. Free cash flow
16. Price-Earnings Ratio [For the purpose of this ratio, look up the market price per share as of September 28, 2017 for Apple Inc. and for Alphabet, Inc. use December 29, 2017]

Note: The Excel files uploaded as the assignment submission should not include any unnecessary numbers or information (such as previous years' ratios, ratios that were not specifically asked for in the project, etc.).

End of Project Summary

Answer 1

	Net sales	$                                                              229,234
	Cost of sales	141,048
	Gross margin	88,186
	Operating income	61,344
	Net income	$                                                                48,351
	Wt average Share outstanding	5,217,242
	Total assets	$                                                              375,319
	Total current liabilities	100,814
	Average Inventory ( Opening+Closing)/2	3,494
	Average Debtors	15,672
	Average Asset	348,503
	Cash Dividend per Share	$                                                                                           2.40
	Market Share Price on 25 Sept 2017	$                                                                                      154.12
	Cash used in investing activities	46,446
	Cash generated by operating activities	63,598
	Depriciation	$                                                                                10,157.00
	Interest	$                                                                                   2,092.00
1	EPS	Net Income/ Wt average of Common Shares	$                9.27
2	Current Ratio	Current Asset / Current Liability	3.72
3	Gross Profit Rate	Gross Profit / Net Sales	38%
4	Profit Margin	Net Profit / Net Sales	21%
5	Inventory Turnover Ratio	Sales / Average Inventory	65.62
6	Days in Inventory	365/ Inventory TO ratio	5.56
7	Account Receivable Ratio	Credit Sales / Average Debtors	14.63
8	Average collection period	365 / Average Debtors	24.95
9	Asset Turnover Ration	Sales / Average Asset	0.66
10	Return on Asset	Profit / Asset	0.13
11	Debt to Asset Ration	Debt/ Asset	0.26
12	Time Interest Earned Ratio	EBIT / Interest	28.97
13	Dividend Yield	Dividend/ Market Share Price	1.56%
14	ROE	Profit / Equity Share Value	0.36
15	Free Cash Flow	Operating Cash Flow - Capital Expenditure	17,152
16	Price Earning Ration	Market Share Price/ Earning Share Price	16.63