Finance Financial Analysis of Apple Inc Technological Company Essay

FU Finance Financial Analysis of Apple Inc Technological Company Essay

This assignment will consist of two parts. 

PART ONE:

Assume the role of a senior financial analyst who has been assigned to complete a thorough and detailed review for a company of your choice from the following list. Access the company’s quarterly financial statements (10-Q) for the past two quarters on EDGAR, which is available on the webpage, EDGAR Company FilingsLinks to an external site..

Select one of the following companies.

Company Name

Abbreviation

Home Depot

HD

Bloomin Brands

BLMN

Apple

AAPL

Starbucks

SBUX

Gap

GPS

Verizon

VZ

Target

TGT

Cisco

CSCO

Ulta

ULTA

Dollar Tree

DLTR

In your thorough and detailed review, analyze the company’s quarterly financial statements (10-Q) for the past two most current quarters and perform the following: 

oPrepare a comparative balance sheet and comparative income statement for the last two quarters and conduct a horizontal analysis of at least two items from the income statement and two items from the balance sheet. What conclusions or insights can you draw about the company’s performance from your analysis?

oPrepare a common-size balance sheet and common-size income statement for the last two quarters and conduct a vertical analysis of at least two items from the income statement and two items from the balance sheet. What conclusions or insights can you draw about the company’s performance from your analysis?

oPrepare a liquidity analysis by computing and using the appropriate ratios to assess liquidity. 

§Compute a minimum of three ratios and show your supporting calculations.

§Analyze the ratios computed and discuss any insights or conclusions that can be drawn from your analysis.

oPrepare a solvency analysis by computing and using the appropriate ratios to assess solvency. 

§Compute a minimum of three ratios and show your supporting calculations.

§Analyze the ratios computed and discuss any insights or conclusions that can be drawn from your analysis.

oPrepare a profitability analysis by computing and using the appropriate ratios to assess profitability. 

§Compute a minimum of three ratios and show your supporting calculations.

§Analyze the ratios computed and discuss any insights or conclusions that can be drawn from your analysis.

oWhat is your company’s primary revenue, secondary revenue, and gains?

oWhat is your company’s primary expenses, secondary expenses, financial activity generated expenses, and losses?

oWhat is the revenue trend? Does the 10-K or 10-Q discuss primary revenues and other revenue types?

oWhat do the accounting policies say in the annual report (footnotes) regarding the cost of revenue? What are the drivers to the cost of revenue and the trends?

oAre there any trends in sales and marketing expenses or research and development? Are these amounts reasonable for the type of business?

oCompare general and administrative expenses to similar companies. Are they reasonable?

oWhat is the ratio of net interest income (expense) to income from operations? Is this a safe ratio for the company? Why or why not?

oWhat is the income taxes trend? Is the effective tax rate reasonable over time?

Formulate your analysis on the preceding requirements to discuss the financial health, performance, strengths, and weaknesses of the company, as well as any identified positive or negative trends.

PART TWO:

In addition to your written financial statement analysis, you will also need to communicate a high-level summary of your analysis to your selected company’s executive team using PowerPoint. The summary should be documented with three to five PowerPoint slides, including speaker notes. In addition, include the company’s

financial health,

performance strengths and weaknesses, and

identified positive or negative trends.