Accounting

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M4_A2.docx

FINANCIAL ANALYSIS

It is much clearer that the apple company is the most liquid company compared to the remaining two companies. This is simply because of their ability to allow various types of assets to be bought and sold at much more stable and reasonable prices. Due to this, the company has been able to build a strong reputation, thereby creating strong bonds with their customers originating from different regions.

The comparison of various companies has led to them coming up with much more efficient information concerning the companies, this information can also be used to predict future activities and ensure that various parameters within the companies are effectively catered for within the required time (Herist, 2011). It is very clear that the apple company has the strongest net income which has enabled it to be able to meet various goals, and due to this, it is a clear indication that the Apple Company has the capability of meeting the needs of various customers around the globe. Moreover, their ability to have the strongest net income is also determined by the quality services that they are capable of offering to all of their customers without any form of discrimination. Most of their products are always regarded to be unique and much different from the other products, due to this they have gone the extra mile to ensure that they are able to manufacture genuine products at all times for them to have the capability of satisfying their customers with long lasting goods.

It is also the Apple Company that has the highest solvency among the other two companies. This is a clear indication that they have the ability to possess various forms of assets in excess of most of the liabilities within the organization. This has led to the scaling up of the entire organization to a much higher level since they have the ability to pay all their debts and in most occasions this has always led to the smooth running of the organization without the emergence of barriers that are related to debts. Highest solvency within a given organization can also be promoted through the implementation of good leadership which ensures that each and every parameter is brought into order without any alteration coming from the operation periods.

In terms of profitability among the companies, the Pepsi Company is the most profitable. This is a clear indication that they have the capability of reaching out to their market in one of the most efficient ways. Moreover, looking at their return on equity, it is much higher when compared to the other companies. Profitability within any given company enables it to scale up very quickly and within the shortest period of time possible thereby meeting a good variety of its goals.

The most solid financial investment company would be the apple company since it is capable of having an adequate balance nearly in all the sectors thus this is a clear indication that it has the capability of performing at the top of the business most of the time. It is therefore recommended for an effective solid financial investment which will bring a positive outcome thus benefiting the company in one way or the other.

References

Herist, K. N., Rollins, B. L., & Perri, M. (2011). Financial analysis in pharmacy practice. London

Pharmaceutical Press.