I) Debt Refer to the notes to the financial statements in the annual report . Yo
ID: 2487673 • Letter: I
Question
I) Debt
Refer to the notes to the financial statements in the annual report. You will also need to refer to the other notes to the financial statements and to the financial statements themselves in order to answer the questions in all parts of this project.
1) In which current liability does the company have the largest dollar amount owed?
2) In which long-term (noncurrent) liability does the company have the largest dollar amount owed?
3) In total dollar amounts, are the company’s liabilities primarily short-term (current) or long-term?
II) Compare the current year ratios.
1. Using the formula given in the textbook, calculate the following for the past two years: Remember, if you need them you will find prior years’ amounts in the Five-Year Summary of Selected Financial Data.
Show your computations.
a) Debt-to-Equity:
Annual Report’s
Current Year:
Last Year:
b) Explain what information this ratio provides. Why do we use it?
c) How do the results for your company compare by year? Explain and give possible reasons for what you’ve found. (at least one paragraph)
2015 Form 10-K: http://investor.apple.com/secfiling.cfm?filingid=1193125-15-356351&cik=320193
Explanation / Answer
Debt to Equity ratio = total liabilities / stockholders equity
2015 =171,124/119,355
= 1.43
2014 = 120,292/111,547
= 1.08
Debt to Equity ratio is used to measure financial leverage. this ratio indicates the extent to which assets are financed by debt relative to the amount of value represented in shareholder’s equity
The company is doing well there is increase of 2% approximately in Gross profit more so because of increase in sales. Also we see there is increase in other comprehensive income due to increase in fair value of marketable securities.
- Current liability with largest dollar amount is account payable
- Noncurrent liability with largest dollar amount is long term debt
- Non-current
Debt to Equity ratio = total liabilities / stockholders equity
2015 =171,124/119,355
= 1.43
2014 = 120,292/111,547
= 1.08
Debt to Equity ratio is used to measure financial leverage. this ratio indicates the extent to which assets are financed by debt relative to the amount of value represented in shareholder’s equity
The company is doing well there is increase of 2% approximately in Gross profit more so because of increase in sales. Also we see there is increase in other comprehensive income due to increase in fair value of marketable securities.