Based on these ratios, specifically interpret Apple's financial condition by using examples of Profitability Ratios, Leverage Ratios, Liquidity Ratios, and Efficiency Ratios.
1. Current Ratio = Total Current Assets/Total Current Liabilities
2. Debt to Equity Ratio = Total Liabilities/Total Shareholders' Equity
3. Inventory Turnover Ratio = Cost of Sales/Average Inventory
- 87,846 / (791+776)/2 = 112.12
4. Return on Assets Ratio = Net Income/Average Total Assets
- 41,733 / (176,064+116,371)/2 = .29
5. Gross Margin Ratio = Gross Profit/Net Sales
- (156,508-87,846) / 156,508 = .44
6. Profit Margin Ratio = Net Income/Net Sales
7. Return on Equity Ratio = Net Income/Average Shareholders' Equity
- 41,733 / (118,210+76,615)/2 = .43
8. Working Capital = Total Current Assets - Total Current Liabilities
• 57,653 - 38,542 = 19,111