Question

Find an annual report for a company of interest (perhaps your employer). Publicly held company annual reports (10K) can be located via Edgar Archives on the Security and Exchange website.

To perform the search in the Edgar Archives you can use either the company name or "ticker symbol" for the company. [View instructions on how to access the annual reports]

Morningstar.com

Edgar Archives

Click on the link to "Interactive Data" and then the link to the "Financial Statements". Locate and review the Income Statement and Balance Sheet. Title your post with the name of your company and share the following in your post:

What is the name of your company?

What is the web address that leads to your financial reports?

Why are you interested in this company?

Calculate the return on assets ratio.

What have you learned from this analysis?

After you have conducted your research, please share with the class approximately 1-2 paragraphs.

Use proper sentence structure and language.

Answer 1

The questions have been answered as below:

Part a)

What is the name of your company?

The company selected for research is Apple Inc..

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Part b)

What is the web address that leads to your financial reports? - https://www.sec.gov/Archives/edgar/data/320193/000032019317000070/a10-k20179302017.htm

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Part c)

Why are you interested in this company?

The company has been constantly involved in developing new and improved technology for its phones and computers. These innovations have made the company one of the most preferred brands in the technology category throughout the world indicating higher growth opportunities. This would mean better returns for an investor planning to invest in the technology industry.

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Part d)

Calculate the return on assets ratio?

The return on assets ratio is calculated as below:

Return on Assets (2017) = Net Income/Total Assets*100 = 48,351/375,319*100 = 12.88%

Return on Assets (2016) = Net Income/Total Assets*100 = 45,687/321,686*100 = 14.20%

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Part e)

What have you learned from this analysis?

Based on the above calculation of return on assets, we can conclude that the company was more efficient in utilizing its assets/resources in 2016 when compared to 2017. In other words, the company utilized its assets more productively in the generation of its income in the year 2016 as indicated by higher ROA of 14.20%.

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Part f)

After you have conducted your research, please share with the class approximately 1-2 paragraphs.

The company that was selected for the assignment was Apple Inc. In order to complete the research and analysis, the relevant financial statements have been obtained from the SEC (securities and exchange commission) website. The 10K report for the year ending on 30th September 2017 is used for the purposes of this assignment. This report contains financial figures for both 2017 and 2016. As per the requirements, the return on assets ratio has been calculated for both 2017 and 2016. The return on assets ratio has decreased from 14.20% in 2016 to 12.88% in 2017. However, judging a company's performance solely on the basis of this single ratio may not be correct and other ratios are also required to be calculated for proper evaluation.