Statement of Cash Flows In evaluating Appendix B, Table 4, the historical statement of cash flows offered insight into financial performance over the three-year timeframe. Analysis of operating activities revealed the strategy to affect a gain of $6.1 billion in cash flow. Accounting for a large portion of operating activities, variations in cash, cash equivalents, and marketable securities increased 28 percent to gain $13.8 billion in 2015; however, 2016 realized a 14 percent, or $7.7 billion, reduction in net income. Nevertheless, net income produced $45 billion, nearly 70 percent, of operating activities in 2016. Depreciation on capital assets increased $3.3 billion in 2015, yet decreased $752 million in 2016. Apple’s tax strategy …show more content…
Apple 39.08, Google 61.08, Microsoft 61.58 (Appendix B, Table 5 and 6). The profit margin evaluates profitability ((Revenue - Cost of goods sold) / Cost of goods sold). With 39 percent return on sales ratio, Apple lagged behind Google and Microsoft in converting sales into net income. Return on Assets. Apple 14.20, Google 11.63, Microsoft 8.67 (Appendix B, Table 5 and 6). The return on assets measures net income produced from total assets (Net income / Total assets). Indicating a greater return on assets from 2014-2016, Apple outpaced Google and Microsoft by generating 14 cents for every dollar in assets in 2016. Return on Equity. Apple 35.62, Google 14.01, Microsoft 23.33 (Appendix B, Table 5 and 6). Return on equity evaluates the percentage of income derived from common shareholder investments (Net income / Total equity). With a higher ratio, Apple was more efficient in using shareholder money to generate profits across the …show more content…
Apple 14, Google 6, Microsoft 5 (Appendix B, Table 5 and 6). The receivable turnover ratio assesses how fast a company collects on outstanding debts from extended credit (Revenue / Accounts receivable). With a much quicker ratio than Google or Microsoft, Apple’s aggressive strategy turned over accounts receivable 14 times per year in 2016. Average Collection Period. Apple 26.67, Google 57.16, Microsoft 78.19 (Appendix B, Table 5 and 6). The average collection period measures the average number of days to collect accounts receivable (Accounts receivable / (Revenue/365)). Correlating to the receivables turnover, Apple had a quicker average collection period that both Google and Microsoft. Inventory Turnover. Apple 61.62, Google 131.11, Microsoft 14.56 (Appendix B, Table 5 and 6). The inventory ratio measures inventory efficiencies (Cost of goods sold / Average inventory). A high ratio suggests a company quickly turns over inventory. Although Apple turned over inventory at half of Google’s pace, Apple managed to outperform
The net income amount that is shown on three statements show $80,322 in the thousands. The three statements are operation statement, income statement, and the cash flow statement. Per all three statements the net income has decreased in the thousands over the last three fiscal years (Bethel University,
The turnover ratio for CanGo Inventory is .29, and the turnover ratio for Amazon Inventory is.11. Which is indicates that CanGo manages its inventory better than Amazon because the less turnover ratio you have the less overstocking inventory company has. So, we can say that CanGo has more an efficient performance than Amazon. Another factor of having high ratios can indicate a loss of sales or returns. Amazon debt to equity ratio is stands at .42 while CanGo debt to equity is stands at .65;
For example, Verizon has increasing number of common stock. It was $424,000. Also, retained earning increased about 27%. Cash flow Statement Net cash provided by operating activities during 2014 decreased by $8.2 billion because increase in adjustment to net income like increase in income tax payments and interest payments.
Return on equity measures the overall profitability of the financial institution per dollar of equity. Generally shareholders of financial institutions prefer the high ROE. But, higher ROE means an increase in risk. 2014 2013 2012 2011 2010
This was done by decreasing their cash and the amount of property and equipment the company had and complemented this with increasing accrued interest (America's CAR-Mart, 2017). Between liabilities and equity, the company matched the increase of $18,000 by raising the notes payable and simply by earning more (See Appendix Page 8). Revenues and expenses have increased yearly since 2015, however net income was considerably down in 2016 however rebounded about 50% in 2017 (See Appendix Page 9). There has been a decrease in net cash from operating activities since 2016 and a considerable decrease in investing activities as well. Financing activities compose the bulk of spending yearly.
One of the major changes anticipated is the requirement that would see public companies and organizations break out the reporting of their operating segments to in particular cases disclose the inventory balances of each of these segments, for example, an operating segment that would be containing in the financial or manufacturing units of a corporation. In addition, such organizations would have to disclose the segments’ inventory components for example, how much of it consists of raw materials, work-in-process, finished goods, and supplies. In fact, private companies and public ones that do not participate in segment reporting would also have to provide component breakdowns. Component disclosures would supply investors with crucial information about a company’s revenue and cash-flow prospects (Charles Mulford, 2016).
Apple produces most of the technology we use today daily (iphones, macbook, etc) making it a huge impact on our lives. “Apple’s service revenue grew 13.4% sequentially and 18.4% year over year to around $7.2 billion.”,
With a high rate of inventory turnover at 42 times in one year, they only make 53 cents of sales for each of their assets. In comparison to their competitors they do better at efficiently collecting their receivables from consumers with 9.8 times a year and AT& T only has a receivables turnover ratio of 8.8 for 2015. Verizon is strong in return on equity with their ability to efficiently manage assets and gain earnings and has grown in this over the last five years. While in return on assets there has not been much growth, unlike profit margin where the firm has an increasing efficiency in managing operations.
Proposed Accounting Standards Update 2017-210 – Inventory (Topic 330) Summary of Main Points of Proposed ASU 2017-10 Accounting Standards Codification (ASC) 330 provides the provisions mandated by Generally Accepted Accounting Principles (GAAP) for the accounting and disclosure requirements for inventory. Inventory represents products held for resale and has financial significance because it is deemed a current asset on a company’s balance sheet and the reported amount affects cost of goods sold. Thus, its accurate measurement is important for meaningful financial statements.
Note 1: Annual growth rates in excess of 100 percent were considered outliers and were reduced to 100 percent to avoid skewing the averages. Note 2: Profit growth is the percentage change from one year to the next. Profit growth is not provided if either the latest period or the year-ago period contains a net loss. If a company posts a profit in the latest period against a loss in the year-ago period, the percent change is represented as a “P.” Similarly, if a company posts a loss in the latest period against a profit in the year-ago period, the percent change is represented as an “L.” Note 3: “—” indicates that the data is not meaningful as the sector posted losses in all periods.”
Walmart has a 29.03 payout ratio which is much higher than Costco which is at 26.4 and Target which has a payout ratio of 20.0. These ratios help investors and Wall Street analyst understand how companies can successfully manage debt and at the same time become profitable while meeting the needs of the consumers. It is expected and realistic to see that Walmart has a large debt ratio, however, this debt ratio must be understood from an organic and holistic point of view to give credence to the ability of the executive team at the organization. Organizations are entities that are not any different from an analysis point of view than that of actual
According to the income statement of Intel, the net revenue is $59,387 million with $10,316 net income. The net income in 2016 contributed 17.4% of revenue. This indicates the good performance of the company. In terms of AECOM, even the net revenue is $17,411 million in 2016, AECOM can generate the net income at only 0.6% of the revenue which is $96 million. Compared the factor ratios between Intel and AECOM, the net revenue in 2016 of Intel is 3.41 times of AECOM, meanwhile the COGs is only 1.38 times.
Apple sells the popular college essential of MacBooks, iPads, iPods, Apple TV, iOS and OS X , along with iCloud storage system. Just recently Apple and Beats have collaborated for $ 3 Billion
One problem they do have is that they’re not spending enough; this is being said because Apple has a cash hoard of $178 billion. For the last three fiscal years apple has made: 231.28 billion in 2015, 183.24 Billion in 2014, and 178.87 Billion in 2013. For one company, that is a whole lot of money to be making just off of electronics.