APPLE Brian Jepson

1.

After selecting the company, examine their financial statements and locate or identify:

2.

The net income or net loss. Income: $53,394 (million)

The earnings per share. $9.28
What classes of stock the company has issued? Common Stock
Whether the company has any treasury stock. If so, how many shares do they have
and what is the cost. N/A
The type and amount of any dividends issued. Cash Dividends: $11,431 (million)
The largest source of cash inflow. Proceeds from sale of Marketable Securities
$107,447 (million)

Calculate the following ratios:

3.

Current ratio 1.11

Debt ratio 0.59
Inventory turnover (if applicable) 99.50
Operating Income (profit) percentage - 30.5%
Return on common stockholders equity 0.45

Decide whether you would invest in the company. Why or why not?

Despite the high profit margin percentage of 30.5% for such a large company, Apples
debt ratio is teetering on the scary side with .59 being very high. We know that in society
technology is growing faster than ever, so it is possible that these debts are a necessary
cost of expansion and growth. I personally would invest in this company because of this
fact and since their global stock growth has been steadily improving over the past five
years.

STARBUCKS -Faisal Alqadheeb

Part 1:
1.

The net income or net loss. Sep 2015

ANS $2757.4 (In million)

2.

The earnings per share.

ANS: $1.84 Basic (In million)
$1.82 Diluted (In million)

3.

What classes of stock the company has issued?

ANS: The Company has only common stock.

4.

Whether the company has any treasury stock. If so, how many shares do they have and
what is the cost.
ANS: There is no treasury Stock.

5.

The type and amount of any dividends issued.

ANS: $928.60 in Millions

6.

The largest source of cash inflow.

ANS: The Company is generating cash from operating activities. It generated
$3749.1(In millions) by its operations.
Part 2. Calculate the following ratios:
1. Current ratio
4352.7 / 3653.5 = 1.19
2. Debt ratio
2327.5/ 12446.1 = 0.19
3.

Inventory turnover (if applicable)

7787.5 / (1306.4+1090.9 /2) = 6.49

Operating Income (profit) percentage

ANS: Operating income / net sales
3601 / 19162.7 = 18.79%

5. Return on common stockholders equity

ANS: Net income / shareholders equity
2757.4 / 5818.0 = 47%

Part 3
3. Decide whether you would invest in the company. Why or why not?
ANS: I have decided to invest in this company. As if we look toward the ratios of
the company we can evaluate firms positions. From current ratio we can say that
firm has can easily payoff its current liabilities. The debt ratio also shows that the
most of the investment is through equity and if we see in the context of solvency
investor is safe in investing in this firm as this has very low percentage of debt
ratio. They also maintain their inventory flow throughout the year effectively. The
income percentage of the firm is also very good. As in point of investor the return
on investment is also very high. So investing in this firm is totally safe and
benefitted so I decided to invest in this firm.
State your reasons for either investing or not?
I am choosing this firm because of its liquidity as the firm has capacity to meet
its current liabilities very quickly. The firm has also maximum of its equity in
operations the percentage of debt is very low which is the main reason behind
investing as the chances of solvency is very low. It also gives a huge profit and
return on the investment. So this firm is very attractive in the view of investor.

Taylor Made Financial Statements

Jeff Gillum
Net Income- 668 Million
Earnings Per Share- 3.32
Stock Class- Common Stock
Treasury stock is available with 70,000 shares available valued at 301 Million
Dividends paid were 10.50 per share
The largest source of cash inflow was retail sales
The current ratio is 2.2%
The debt ratio is 16.2%
The operating profit is 8.1%
Return on Common Stock was 2.9%
I would invest on the Adidas group. Their debt ratio is low and their amount paid to
shareholders has grown in the last three years. The companys profits have grown by an average
on 11 million a year for the three years too. The company is constantly growing in popularity and
also as a business. They are a safe bet to get your money and then some too.

Final Analysis:
Apples net income was much higher (in the billions) than the other two companies, but this is
mainly because of the difference in their industries. Cash flow was mainly from operating
activities and sales, this shows that the companies, although different, are creating revenue
mainly from their products and services.
Our group has decided to invest in each of the 3 companies studied. They all show positive
ratios with growth only increasing from the previous years financial statements. All of the
companys debt ratios except the Taylor Made corporation are below the industry averages which
shows that they are able to manage their liabilities effectively.