The company is Apple This week, perform ratio analysis and share your results on
ID: 2397995 • Letter: T
Question
The company is Apple
This week, perform ratio analysis and share your results on your company's liquidity. Make sure that you are indicating the years for the ratios so that, they can be easily compared. Try to determine if one company is clearly more liquid than the rest using the following ratios" Quick ratio Current ratio Operating cash flows to current liabilities Average collection period Days sales in inventory Provide ratios three consecutive years for the quick ratio and current ratio. Provide results for two consecutive years for the other three ratios List any ratios that seem out of alignment with the group and discuss reason for the outlier. Mention anything that you find strange while looking at the financial statements so that, the item can be discussed later.Explanation / Answer
2017 2016 2015 Quick Ratio 1.09 1.22 0.89 Current Ratio 1.28 1.35 1.11 Operating Cash Flows to Current Liabilities 63598/100814 =63.08% 65824/79006 = 83.31 Average Collection Period 26.77 27.59 26.79 Days Sales in Inventory 9.04 6.22 5.81