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| | Apple Computer (AAPL) |
| | Part 1: Liquidity and Activity Ratios |
| | | | | 2) (6 pts) | | 3) (6 pts) |
| | | 1) (6 pts) | | Inventory | | Days Sales |
| | | Current Ratio | | Turnover | | Outstanding |
| | 2016 |
| | 2017 |
| | 2018 |
| | 2019 |
| | 2020 |
| | Current Ratio Analysis |
| | 1a) (1 pt) |
| | 1b) (2 pts) |
| | 1c) (2 pts) |
| | Inventory Turnover Analysis |
| | 2a) (1 pt) |
| | 2b) (2 pts) |
| | DSO Analysis |
| | 3a) (1 pt) |
| | 3b) (2 pts) |
| | 3c) (1 pt) |
| | | | Current | | | | | Accounts |
| | | Current Assets | Liabilities | COGS | Inventory | Revenue | | Receivable |
| | 2015 |
| | 2016 |
| | 2017 |
| | 2018 |
| | 2019 |
| | 2020 |
| | Part 2: DuPont Method Ratio Analysis |
| | | Pretax | * | 1 - Tax | = | Net | * | Operating | * | Financial | = | Return on | | | Debt to |
| | | Profit Margin | | Rate | | Margin | | Leverage | | Leverage | | Equity | | | Capital |
| | | For every dollar | | A higher ratio | | For every | | How many | | How has debt | | How much net | | | What % of |
| | | of revenue | | means t is | | dollar of revenue | | dollars of revenue | | helped expand | | income has been | | | the company's |
| | | generated, how | | lower & the | | generated, how | | can the company | | the company's | | generated as a % | | | capital is Debt |
| | | much does the | | co. is keeping | | much does the | | generate for | | asset base? | | of the owners' | | | (rather than Equity)? |
| | | co. keep (before | | more of its | | company keep | | every dollar it | | | | investments? |
| | | taxes)? | | pretax dollars | | | | has invested in | | | | | | | (Mirrors Financial |
| | | | | as net income | | | | assets? | | | | | | | Leverage) |
| | 1) | (30 pts) | | | | Net Margin | * | Asset Turnover | * | Assets to Equity | = | Return on Equity |
| | | | | | | | | | | | | | | | 2) (6 pts) |
| | | PreTax Income/ | * | | = | Net Income/ | * | Revenue/ | * | Assets/ | = | Net Income/ | Check | Check | Debt / |
| | | Revenue | | (1- t) | | Revenue | | Assets | | Equity | | Equity | ROE | Net Margin | Capital |
| | 2016 |
| | 2017 |
| | 2018 |
| | 2019 |
| | 2020 |
| | | | Pretax | | Net |
| | | Revenue | Income | Tax | Income | t | | Assets | | Equity |
| | 2016 |
| | 2017 |
| | 2018 |
| | 2019 |
| | 2020 |
| | 3) Is the trend in the company's ROE over the last 5 years favorable or unfavorable? (1 pt) |
| | 4) Which factor (or factors) has driven the ROE trend? (3 pts) |
| | 5) Do you believe the company has room for future increases in ROE? (2 pts) |
| | | If so, which ROE component(s) would drive these increases and why? (5 pts) |
| | | If not, which ROE component(s) would prevent ROE increases and why? (OR 5 pts here) |
| | Part 3: Beta |
| | 1) AAPL Beta (1 pt): |
| | What does this statistic tell you about Apple? (2 pts) |
| | Part 4: Risk Vs. Return Analysis |
| | 1) Overall, how would you rate the company's Risk/Reward tradeoff? (2 pts) |
| | Use Ratios / Statistics and your thoughts on the company's future ROE potential to justify your conclusions (5 pts): |
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DupontProjectTemplate1.xls
