Apple Financial Statement Analysis

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1. INTRODUCTION This financial statement analysis consists of Microsoft Corp. and Apple Inc. for the year 2013, 2012, and 2011. Annual reports of Microsoft Corp. and Apple Inc. are used to analyze the financial statements for the year 2013, 2012, and 2011. This analysis is essentially focused on four different financial areas. They are liquidity ratio, profitability ratio, efficiency ratio, and cash flow statement. This financial statement analysis report includes three years historical comparisons with the Microsoft Corp. and its competitor Apple Inc. Under each financial area, details of comparison and recommendations are given based on the data collected from annual reports. All the figures given in this financial statement analysis report…show more content…
has step by step been decreasing since 2011 until 2012, and it starts to expand from 2012 to 2013. This shows the quantity of pennies earned on every dollar of benefits and it heads the organization is more productive from 2012 to 2013. An expanding pattern of ROA demonstrates that the benefit of the organization is progressing. Alternately, a diminishing pattern implies that gainfulness is breaking down. As the same way, Apple Inc at first begins to build their profit for possessions from 2011 to 2012 and from that point it is declining from 2012 to 2013. Microsoft Corp. can have a superb profit for stakes, on the off chance that they begin expanding their income and additionally diminishing their consumption, which will prompt expand the net salary of the organization. 4.4. Return of Equity Return on equity, or ROE, is the best known of the rate of profitability proportions. Numerous accept it is the last model of gainfulness. Investors and financial specialists give careful consideration to this degree on the grounds that it lets them know the amount the organization is profiting contributed. They see it as a key marker of general working proficiency and the nature of administration. National midpoints for this degree change from 5 to 25%, contingent upon the kind of industry. Ten percent is viewed as an alluring…show more content…
is developing from 2011 to 2012, and after that it beginning on dropping until 2013. Yet, Operating cash flow to debt of Apple Inc. is continuing tumbling from 2011-2013. Microsoft Corp. from 2011-2012 shows augments in Operating cash flow to debt, which demonstrates a superior capability of the organization to blanket its liabilities. A high or expanding Cash Flow to Total Debt degree is normally a positive sign, demonstrating the organization is in a less unsafe budgetary position and better fit to pay its obligation load. Then again, an organization with a diminishing proportion brings about a more hazardous budgetary position, as declining money stream and/or a climbing obligation burden uncovers an organization that is less fit to deal with its

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