Question

using the appropraite financial metrics, comment on Apple incorporation's profitability. include the metrics in your discussion

Answer 1

Profitability Measures of Apple corporation
		2019		2018
Gross profit ratio	gross profit/total revenue	37.8%		38.34%
Gross profit		98,392,000		101,839,000
total revenue		260,174,000		265,595,000
operating profit	operating profit/total revenue	24.6%		26.69%
Gross profit		63,930,000		70,898,000
total revenue		260,174,000		265,595,000
Net profit ratio	net profit/sales	21.2%		22.9%
net income		55,256,000		59,531,000
total revenue		260,174,000		260,174,000
return on total assets		16.32%		16.68%
net income		55,256,000		59,531,000
average of total assets	(338516000+338516000)/2	338516000	(375319000+338516000)/2	356,917,500
return on shareholders equity		55.92%		49.36%
net income		55,256,000		59,531,000
average of total shareholders equity	(90488000+107147000)/2	98,817,500	(134047000+107147000)/2	120,597,000
From the above analysis it can be concluded that company's gross profit ratio, operating profit ratio, net profit ratio and return on total assets has decreased but return on shareholders equity has increased, this happens because of decrease in shareholders equity. Thus we can say this company's profitability is better but it has reduced in comparison to previous year.