Question

conduct a financial analysis of any company better if its apple or a common one Included in the analysis will be the following items:

Background Information/Environmental Scan

DuPont Identity

Current Ratio

Quick Ratio

Inventory Holding Period

Average Collection Period

Debt Ratio

Free Cash Flow

Market Value Added

Economic Value Added

Dividend Yield

Required Rate of Return based on the Capital Asset Pricing Model

please add sources thank you

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Answer 1

Dupont Identiy
Period	ROE	=	Tax Burden	×	Interest Burden	×	EBIT Margin	×	Asset Turnover	×	Financial Leverage
Sep 28, 2019	61.06%		0.84		0.95		26.64%		0.77		3.74
Sep 29, 2018	55.56%		0.82		0.96		28.67%		0.73		3.41
Required rate of return using CAPM	6.25%	{ 2%+1.18(5.6-2%)}
	Rf	2%
	Beta	1.18
	Rm	5.60%
Ratios	30-09-2019	30-09-2018
Current ratio	1.54	1.13
Quick ratio	1.50	1.37
Inventory Holding period Days	39.40	41.39
Average Collection Period Days	64.25	67.33
Debt ratio	0.73	0.71
Free cash flow Per share	-0.04	0.74
Market Value added( in million)	1016043.00	838554.00
Economic value added( in millions)	45746.00	21001.00
Dividend Yield	1.48	1.60

Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Apple personal computers. As computer technology was really new to the world at that time apple and Microsoft were the major players in this personal computer technology in 1984 macitosh came out and jolted the industy with its user interface. But still the operations of Apple were confined to USA untill the breakthrough devices like Ipod and iphone made it to the shelf. Now apple is operating 506 apple store around the world and in united states. The global expansion is important for Apple as large consumer markets are present in foreign countries where the corporation has not started to serve yet. On technology industry, Apple has made its mark by continuously innovating successful products that lead its various markets.The company has charged high price on the iPhone models. It uses a value-based pricing strategy. Therefore, with this brand equity, the company’s main target is the top-grade segment of the marke. In spite of this, the models are still costlier compared to other market competitions like Samsung, VIVOV LG phones which provide similar features at lower rates.

Source :

https://www.macrotrends.net/stocks/charts/AAPL/apple/stock-price-history

https://www.stock-analysis-on.net/NASDAQ/Company/Apple-Inc/Profile

https://www.sec.gov/Archives/edgar/data/320193/000032019318000145/a10-k20189292018.htm