_Financial Ratio Analysis _ Team B( 2)
Fianacial ratio Analysis Apple, Inc.’s financial records prove that the company is strong performance wise and that the company’s finances have remained rather steady over past years. In the second quarter of2017, Apple, Inc. reported better profitability than its competitors did. Apple, Inc. had a net margin of 19.20% and total costs of 80.80% in comparison to Apple, Inc.’s competitors which has a net margin of 10.78% and total costs of 89.22%. In addition, Apple, Inc.’s net income growth was 11.81% and their competitors was -9.55%. Apple, Inc.’s net income has grown year by year 11.81% while most of its competitors have experienced contraction in net income by -9.55%. Also, Apple, Inc. reported an earnings growth of 8.42% while the computer industry reported just 2.10%. Although Apple, Inc. has reported good numbers, their revenue growth has not in comparison to its competitors. Apple, Inc. just 7.20% in revenue growth while its competitors have reported 12.18% growth. Overall, when comparing Apple, Inc’s finances to its competitors, Apple, Inc. reported a total revenue increase in the second quarter of 2017 by 7.2% year on year. The revenue growth was below Apple, Inc.’s competitor’s average revenue growth of 12.18% which was recorded in the same quarter. Conclusion When evaluating Apple, Inc.’s finances in addition to its competitor’s finances, the finances provide good insight on the industry averages, as well as Apple, Inc.’s and its competitors strengths and weaknesses. Having the ability to view these company’s finances provides great insight for many individuals such as; shareholders, investors, lenders, etc. During the decision-making process. By identifying trends and the overall financial state of the company, decisions can be made for future financial plans and endeavors. Comparing Apple’s form and calculated financial ratios to previous years and to other industry leaders is invaluable for future success.
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