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Apple Inc Essay

1147 Words5 Pages

Apple, Inc.
Inez Esparza
Southern New Hampshire University

Apple, Inc. The excel workbooks contain information and calculations of Apple Inc. and Dell Technologies, Inc. This is dome with the aims of analyzing the performance of the two firms. This is crucial especially where a decision to invest in a company is needed. The financial ratios and the performance of the stock on the stock exchange is crucial in making the best decision. Three-Year Returns Apple Inc. has performed well over the past three years. It is evident that there has been a fluctuation in the returns pattern. However, the firm’s stock was trading at 127.35 on 6th April 2015 …show more content…

had the leverage ratio of 0.47 in 2015, 0.615 in 2016 and 0.77 in 2017. This shows that the business is becoming more leveraged as time goes by. This may be due to the increased uptake of loans by the company. This increases the default risk and the financial costs in the firm.
Dell Technologies Inc. had a debt equity ratio of 11.33 in 2015, 2.93 in 2016 and 3.99 in 2017. This trend indicates that the company is keen on reducing the uptake of loans and other borrowing. Management may be keen on the payment of the loans or their conversion to equity. Based on this ratio an investor should pick on Apple as its ratio is below a value of …show more content…

has a return on equity (ROE) of -75.31% in 2015, -9.04% in 2016 and -25.72% in the year 2017. This ratio shows that the business has been performing poorly and posting losses in the period under review. Apple Inc. had an ROE of 44.74% in the year 2015, 35.62% in the year 2046 and 36.07% in the year 2017. These ratios show that the company is posting profits from one year to the other. However, there is need to reassess the profits as they are decreasing slightly.
EPS
Apple Inc. has positive Earnings Per Share (EPS) from one year to the other. This is shown by 9.28 in the year 2015, 8.35 in the year 2016 and 9.27 in the year 2017. This is a good sign as the business is generating profits for its shareholders. Dell Inc. had an EPS of -263 in the year 2015, -410 in the year 2016 and -829 in the year 2017 (Mergent Online, 2018). This shows that the company is posting losses that are increasing from one year to the other.
Profit Margin Dell Technologies Inc. had a net margin of -2.6% in the year 2015, -3.53% in the year 2016 and -6.58% in 2017. This shows that the loss made by the company is increasing in the period under review. Apple Inc. has a margin of 22.85% in 2015, 21.19% in 2016 and 21.09% in 2017. This indicates that the firm has made profits in each of the year under

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