Financial and non Financial Information of Apple Free Samples

Question: Discuss about a Report for Financial and non Financial Information of Apple? Answer: Company Chosen - Apple Performance of company The ratios considered is based on the annual return of 2015 (Anon, 2015) Profitability Ratios The Company is reflecting various ratios under profitability, under which important are ROE, Return on Assets, asset turnover and net profit. The performance as seen states that all ratios are high. Higher ROE may mean that the company is using the available advantages at high-speed which will slow down the ratio in near future. Higher ROA reflects great capital investment in fixed assets, which is necessary for a company. Net profit of the company is above average, but the expense covered by it is considered in-depth. Liquidity ratios - It considers Current ratio and Quick Ratio. The former is 1.1:1, which means that the company is able to pay current liabilities from its cash and current assets which are converted easily on demand. The latter is 0.89:1 which means that company is not having enough cash in hand to pay off the short-term liabilities. Therefore, it means that to pay off the liabilities, the company will need converting inventories and debtors, marketable securities into cash. However, conversion is done easily as per the ratio. Solvency Ratio Debt to equity ratio is 0.45 which means that there 45% are debts as stakeholders. The company is having investors in large number which is not a good indicator for investors and creditors. It is an expensive financing as interest payments are also made in it. Equity ratio determines how much of the equity is used to finance assets. The ratio is 41.09% which is High means investors believe in the company. The debt ratio is 58.91% which reflects that most of the assets is used to pay the liabilities. This situation is risky for the investors. The performances of the company based on above ratios are showing that the company is able to earn huge profit in a short period and it believes in investing in fixed assets of the company. The payout ratios are also above average, and when needed the company is able to convert the current assets into cash. The cash in hand is not much to cover the liabilities. The risky reason in considering debts as financial source is that when they forms a major part of the finance, though not as half of the equity, they are tend to make financial statement look rough. Debts carry the baggage of interest on it which decreases the investors capital. The company is offers various products, because of which its competitors too are different in each product category. The competitors in the field of PCs are Dell, Acer, Hewlett, and Lenovo. In mobile computers are Samsung, Nokia, Asus, and Google. In Smartphones are HTC, Lenovo, Huawei, Samsung and Sony, In Entertainment media are Google only. In mobile payments are PayPal, Google (Investopedia, 2015). The rank of the company in the same industry is found to be no, 1 (Fortune, 2015). Apple with its innovative factors ranging from financial to non financial has made it to the top because of commitment to each such reason and toward the stakeholders. Non Financial factors of the Company (Anon, 2015) It is important for an investor to consider factors other than financial. Apple ranks no. 1 in all the given factors. The given factors are important and are taking the centre stage in making decision while investing (Fortune, 2015) People Management It is the way and trait of a leader leading its employees to make the success for the company. A good ranking defines about the companies hold on its employees in a good way, and how the former work hard to reach the goal. This way company will do well. Social responsibility (Anon, 2015) It means that the company is fulfilling its social obligations such as tax, compliance of laws, ethics, etc. It is like an image which it makes in the stakeholders eyes. A good Social responsibility of the company affects it in the long run. The investor gets affected by it as it reflects the brand which company is and safeguards the interests in profit. Quality Management (Douglas, T.J, Judge,W.Q) It deals with the quality of an organization, services or product. It consists of four components. These are planning, control, assurance and improvement. When the products or services being made or delivered by the company is of top most quality then, its performance will also get better leading to high sales and revenues which an investor is looking for. References Anon. 2015. Annual reports 2015. Retrieved 13th February 2016 from: https://files.shareholder.com/downloads/AAPL/1522336268x0x861262/2601797E-6590-4CAA-86C9-962348440FFC/2015_Form_10-K_As-filed_.pdf Anon. 2015. Supplier responsibility 2015 Progress report 2015. Retrieved 13th February 2016 from: Rethttps://images.apple.com/supplier-responsibility/pdf/Apple_Progress_Report_2015.pdf Environmental Responisiblity. 2015. Retrieved 13th February 2016 from: https://www.apple.com/environment/our-progress/ Fortune. 2015. Most admired 2015. Retrieved 13th February 2016 from: https://fortune.com/worlds-most-admired-companies