Question

Discuss and analyze Finance/Accounting for Apple's company (Provide information about at least three financial ratios to describe strengths and weaknesses)?

Answer 1

Apple is the the world's largest company after Saudi Aramco which is listed on the exchanges. It is a company which has unique products which are of high quality and separate league of its on consumers. Its loyal consumer base is increasing year on year and that's leading to phenomenal financial data reporting.

It is a company which is high on its cash reserves as well as the overall debt of the company is much lower in comparison to it's overall capital structure so that helps in taking complete control of its business.

It could be analysed through different type of financial ratios like debt ratios which is 19 % of the overall capital structure of the company that reflects that its depth is minimal in comparison to its overall capital structure and it helps in maintaining the complete control of its business.

the debt equity ratio is also just 53 % which reflects that the solvency of business is completely protected as it has very less repayment to pay to the debt holders and a debt equity ratio of lesser than one is highly preferable in such times where there is a lot of financial chaos.

The profit to the earning ratio is just 12 times that makes it a highly attractive company. A P/E of 12 is always preferable for investors because it means that share has a lot of upside left because it is not richly valued.

so keeping all these factors and ratios as well as the financial projections in mind, Apple is going to maintain its profitability and it is going to sustain and survive in the long run.