BUS 600 Foundation of Business Management --- Study of Apple Financial Statement

After reviewed Apple’s 2008 Q3 financial statement, my calculation shows Apple’s financial ratios as follow:

Current Ratio = 3.04

Financial Leverage = 1.62

Long Term Debt to Capital = 0

Asset Turnover per Period = 0.82 (annually basis)

Inventory turns per Period = 8.92 (turns per quarter)

Days Sale in the Inventory = 0.0012m

Return on Sale = 14.36% (quarterly basis)

Return on Equity =24.64% (annually basis)

Few key ratios cannot be simply figured out by just looking into quarterly statement. Extracting figures from 2008 annual financial report is required for certain financial ratio evaluation.

As we perform Apple’s financial benchmark comparison with Hewlett-Packard and Dell. Apple’s profitability, growth and financial strength ratios do outperform its competitors. However, Apple’s PE ratio is 23. This figure is at least twice higher than HPQ and DELL's P/Es, which are 12 and 18 respectively.

How Apple can further get the products accepted by the business users will be the key to its future growth.

Watch out competitors… iBoard and iMat are coming !

:D