For this assignment, you will continue researching your chosen company. Compose a paper on the financials of your chosen firm; you will choose two ratios from each category (liquidity, prof

For this assignment, you will continue researching your chosen company. Compose a paper on the financials of your chosen firm; you will choose two ratios from each category (liquidity, profitability, and solvency) and conduct an analysis as well as highlight key areas/trends of the income statement and balance sheet finance report

Instructions
Research Paper: Part III
For this assignment, you will continue researching your chosen company. Compose a paper on the financials of your chosen firm; you will choose two ratios from each category (liquidity, profitability, and solvency) and conduct an analysis as well as highlight key areas/trends of the income statement and balance sheet. Be sure to answer the following questions in your response:
What do the ratios reflect?
Does the company appear healthy and headed in the right direction? Explain.
How does the company compare to another firm in the same industry in regards to financial metrics (for instance, a comparison of Target versus Walmart based on the basic ratio categories mentioned above)?
Your paper must be at least two pages in length, and you must use at least two sources. Adhere to APA Style when creating citations and references for this assignment.
Requirements: at least two pages in length
FIN 3301, Financial Management 1 Course Learning Outcomes for Unit VI Upon completion of this unit, students should be able to: 5. Prepare preliminary financial statements and ratio analyses. 5.1 Perform an analysis of a firm using various ratios. 5.2 Summarize key areas of an income statement and balance sheet. 6. Evaluate stock and bond valuation. 6.1 Assess the health of a firm using financial data. 6.2 Compare the financial metrics of two companies in the same industry. Course/Unit Learning Outcomes Learning Activity 5.1 Unit Lesson Chapter 14, pp. 432-458 Unit VI Scholarly Activity 5.2 Unit Lesson Chapter 13, pp. 391-420 Unit VI Scholarly Activity 6.1 Unit Lesson Chapter 13, pp. 391-420 Chapter 14, pp. 432-458 Unit VI Scholarly Activity 6.2 Unit Lesson Chapter 13, pp. 391-420 Chapter 14, pp. 432-458 Unit VI Scholarly Activity Required Unit Resources Chapter 13: Business Organization and Financial Data, pp. 391-420 Chapter 14: Financial Analysis and Long-Term Financial Planning, pp. 432-458 Unit Lesson In this unit, we will study financial data and financial analysis. We will examine the different business organizations and the basic financial statements. Further, we will gain a better understanding of the ratios and how they assess a firms performance. Finally, we will learn about the link between financial analysis and long-term financial planning. UNIT VI STUDY GUIDE Financial Data and Data Analysis
FIN 3301, Financial Management 2 UNIT x STUDY GUIDE Title Corporations prepare financial statements to inform shareholders, creditors, and others about the financial position of the company on the date that the financial statements were prepared. The financial statements consist of the following: ? The income statement, which is a summary of the revenues and expenses of the business over the accounting period; ? The balance sheet, which is a summary of the assets and liabilities of the company on a specific date; and ? The cash flow statement, which is a summary of the net inflows and outflows of cash during an accounting period (Needles et al., 2011). The statement of retained earnings is also considered an important financial statement; it shows the changes in retained earnings over the accounting period. The four statements are interrelated with the information on some statements dependent on the information in other statements (Brigham & Houston, 2015). The following sections discuss the relationship of the financial statements to the objective of the firm and corporate governance, financial statement analysis, and the use of financial statements for long-term financial planning. Objective of the Firm The general objective of all firms in the private sector is to maximize profit for the shareholders. The financial statements provide information about the degree of success the firm has in increasing profit for shareholders although the financial statements report only on accounting profit (Thomas & Maurice, 2016). Investors can use the information in the financial statements to determine if their investment in the company is providing the required amount of return when considering factors such as the type of industry and the amount of risk involved in the business. The investors can also use the financial statements to determine whether managers have been successful in increasing shareholder value. Because financial statements in all companies have to use the same accounting standards such as Generally Accepted Accounting Standards (GAAP), the statements enable investors to compare the return on their investment with other similar companies in the same industry. Creditors also use financial statements to determine the amount of risk involved with loans to the firm. As a result, the financial statements can influence the cost of debt capital for the firm, which can affect profitability. Corporate Governance Financial statements are useful for providing the board of directors as well as managers with information about the effect of past financial and operational decisions. The directors of a company can use the financial statements as a tool to help with the oversight of the company. The board of directors has an audit committee usually composed of directors who are not managers in the company that helps to ensure that the financial statements are a full and accurate representation of the financial position of the company (Lee, 2006). The directors can also use the financial statements to assess the performance of managers for achieving the basic objective of the firm (increasing shareholder value). The financial statements contain a substantial amount of information about the company to help managers assess the strengths and weaknesses of the company and take appropriate corrective action (Brigham & Houston, 2015). One of the ways that financial statements can help managers with controlling the activities of the company includes providing information for preparing budgets and determining whether budget objectives have been met. Financial statements can also assist managers with financial analysis, capital investment decisions, and cost and revenue estimation (Marsh, 2012). To use financial statements effectively, however, managers have to be familiar with the methods to analyze the statements. All firms want to increase profits. Financial statements help measure this. (Photoking, 2018)
FIN 3301, Financial Management 3 UNIT x STUDY GUIDE Title Financial Statement Analysis Financial statement analysis determines how important items in the company’s financial statements relate to the company’s primary objective of increasing shareholder value (Needles et al., 2011). The objective of increasing shareholder wealth can be divided into different categories to assist with the analysis of the company’s performance. In addition, ratios can be created from the information in the financial statements; these ratios can be used to assess the current effect of managerial decisions and to compare changes in the financial statements over time as well as comparing the financial statements of a company with industry peers (Brigham & Houston, 2015). Liquidity Ratios The liquidity ratios are a measure of the ability of a company to pay its liabilities that are due within one year and to have enough cash to meet unforeseen expenses. Liquidity is based on cash and assets that can be quickly converted to cash without substantially reducing the value of the asset. The most important of the liquidity ratios is the current ratio that is found by dividing current assets by current liabilities (Brigham & Houston, 2015). Current assets are cash and marketable securities while current liabilities are accounts payable or other bills payable within one year. A company should have a current ratio greater than one to ensure it can pay its liabilities without borrowing. The ratio should also be similar to industry peers. The quick ratio is useful for assessing the liquidity of companies that carry inventories. The quick ratio is calculated by subtracting the value of inventory from current assets then dividing by current liabilities (Brigham & Houston, 2015). The quick ratio is important for determining how dependent the company is on the sale of inventory to pay its current liabilities, which could be an important issue during periods of business slowdown. Asset Management Ratios The asset management ratios are a set of ratios that measure how effective managers are with using the company’s assets to produce value for shareholders (Brigham & Houston, 2015). The accounts receivable turnover assesses how well the company manages its credit policy and is found by net credit sales divided by average accounts receivable. The ratio helps managers evaluate the tradeoff between increasing sales through easy credit policies and the costs of longer periods necessary for collection (Baker & Powell, 2005). A variation is receivables collection period, which can be found by dividing 365 by the accounts receivable turnover. Changes over time in the receivables collection period can provide information about the effectiveness of the credit policy. Additionally, the inventory turnover ratio provides an indication of whether the company is carrying too much inventory and is found by dividing the cost of goods sold by the average inventory. The total asset turnover ratio is an indication of the effectiveness of management for using the company’s assets to produce value for shareholders. The ratio is found by dividing sales by total assets. The ratio varies across industries because some industries are more capital intensive than other industries. Financial Leverage Ratios The financial leverage ratios evaluate the effectiveness of the company in managing its debt and are of great interest to creditors. As the level of debt increases, the risk the debt represents to the company also increases. The debt ratio is found by the total liabilities divided by the total assets. A ratio less than one suggests the company is at risk of insolvency (Baker & Powell, 2005). The debt-to-equity ratio assesses the relationship of debt and equity in the capital structure and is found by total liabilities divided by total equity. The long-term debt ratio is found by dividing long-term debt by total assets; this provides a guide as to whether a company is excessively leveraged.
FIN 3301, Financial Management 4 UNIT x STUDY GUIDE Title Profitability Ratios Profitability ratios are of interest to investors and evaluate how the company compares to competitors. Operating margin is found by dividing operating profit over sales and is a rough indicator of whether operating costs are too high. The net profit margin is found by dividing net income by sales and can be compared to industry averages to determine the effectiveness of management policies. The return on assets (ROA) is found by dividing net income by total assets, and it determines the effectiveness of management for using assets to produce value (Baker & Powell, 2005). The return on investment (ROI) is based on dividing net income by average total equity. Market Value Ratios Market value ratios relate to the company’s stock price and are theoretically affected by company earnings and value. The price earnings (P/E) ratio divides the stock price by the earnings and indicates how much investors are willing to pay for a share per dollar of earnings (Brigham & Houston, 2015). A high P/E ratio suggests that investors are optimistic about a company’s future earnings. The market-to-book ratio divides the market value of equity by the book value of equity with a ratio greater than one indicating that the company has produced excess value for investors. Long-Term Financial Planning Past financial statements provide information about trends in the company based on current policies and operations. As a result, financial statements can be useful for long-term financial planning by providing a basis for projecting the effect of different scenarios in the future. For example, a company could use pro-forma financial statements for future accounting periods to determine the effect of a 10% decrease in sales from a future recession on the ability of the company to meet its long-range debt obligations. The approach could be useful to support decisions about financing capital expansion with either debt or equity. The assumption in using past financial statements to make future financial projections is that the past conditions and trends will remain unchanged in the future except for one critical variable. In summary, we studied financial data and financial analysis and examined the different business organizations. We learned about the basic financial statements and gained a better understanding of the ratios. Finally, we explored the link between financial analysis and long-term financial planning. References Baker, H. K., & Powell, G. (2005). Understanding financial management. Wiley-Blackwell. Brigham, E. F, & Houston, J. F. (2015). Fundamentals of financial management. Cengage. Dragon345. (2018). ID 71348428 [Image]. Dreamstime. https://www.dreamstime.com/stock-photo-blue-ballpoint-pen-financial-ratios-analysis-check-lists-antique-clock-two-vintage-brass-keys-business-image71348428 Lee, T. A. (2006). Financial reporting and corporate governance. Wiley. Marsh, C. (2012). Financial management for non-financial managers. Kogan Page. Needles, B. E., Powers, M., & Crosson, S. V. (2011). Financial and managerial accounting. South-Western Cengage. Firms use ratios for many different financial aspects. (Dragon345, 2018)
FIN 3301, Financial Management 5 UNIT x STUDY GUIDE Title Photoking. (2018). ID 131218859 [Image]. Dreamstime. https://www.dreamstime.com/profit-word-yellow-paper-wooden-steps-arrow-black-grunge-background-profit-word-steps-image131218859 Thomas, C., & Maurice, S. C. (2016). Managerial economics. McGraw Hill. Suggested Unit Resources In order to access the following resource, click the link below. The video below gives a quick lesson on the fundamentals of financial statements. In about five minutes, you will have a pretty good basic understanding of this concept. Costa, C. (2012, April 3). 5 minute finance lesson: Financial statement basics [Video]. Cielo24. https://c24.page/yky7vp8wubugjcvu99bmmx7cdy A transcript and closed captioning are available once you access the video. Learning Activities (Nongraded) Nongraded Learning Activities are provided to aid students in their course of study. You do not have to submit them. If you have questions, contact your instructor for further guidance and information. How well do you know the unit material? Take the Unit VI Knowledge Check Quiz to find out! (PDF of Unit VI Knowledge Check Quiz)
Financial Management
Chrystal Fassett
Columbia Southern University
Financial Management
Dr. Russ Davis
Due 12-20-22
Financial Management
Introduction
Apple Inc. is an American global technology enterprise renowned for its software, online services, and consumer electronics. It is one of the world’s leading companies in market capitalization, with over $2 trillion (Euroconsumers, 2021). It designs, assembles, and sells various consumer electronics, including Apple Watches, iPhones, Macs, iPads, Apple TVs, and HomePods. Apple also provides digital content and services such as Apple Books, Apple News+, and Apple TV+.
Discussion
Apple Inc. was established in 1976 by Steve Jobs and Steve Wozniak, became a corporation in 1977, and today ranks among the most valuable and well-known brands in the world. It is also the largest technological firm in terms of revenue. As of 2021, Apple had approximately 140,000 full-time employees and operated 500 retail stores in 25 countries (Euroconsumers, 2021). Apple has traditionally been a consumer electronics company and is now a leading technology firm worldwide. It operates in various retail, health, education, entertainment, and telecommunications industries.
Apple’s banking structure is primarily focused on its current research and development investments and its partnerships with other technology companies. Apple is structured as a publicly traded company, which allows it to receive capital from public markets and investors. It is listed on the NASDAQ stock exchange (Al Mheiri et al., 2021). It has a diverse range of partners, including suppliers, distributors, retailers, and banks, who serve as important sources of capital and liquidity. Apple also has an extensive venture capital network, investing in companies such as Airbnb, Lyft, and Uber, which allows it to invest in innovative products and services.
The company’s banking structure consists of current and past investments, such as marketable securities, cash, short-term investments, and cash equivalents. Apple’s current investments are mostly in government and corporate bonds, while its past investments include stock, mutual funds, and other securities (Al Mheiri et al., 2021). These investments have been used to finance Apple Inc.’s operations and growth since its inception. Apple also structures its capital through banking relationships with large financial institutions, including Bank of America, Goldman Sachs, and JPMorgan Chase. The banking relationships offer the company services such as credit lines and lines of credit for short-term financing. The company has a long-term debt of approximately $100 billion, funded through various banking relationships (Yie et al., 2021). The company also has a strong balance sheet with a substantial cash position. These relationships provide the company with access to capital for investments and acquisitions, as well as access to liquidity for day-to-day operations. Apple also has a strong credit rating, which helps to secure its banking relationships. Apple has a long and storied history in the technology industry, and its products and services are widely used and appreciated worldwide.
Apple Inc.’s capital structure consists of both debt and equity. Equity is the company’s ownership interest, which comprises common and preferred shares. Apple Inc. currently has over five billion shares outstanding, most of which are held by institutional investors. Debt is a form of borrowing, and Apple Inc. has issued corporate bonds, commercial paper, and other forms of debt to finance its operations. Apple currently employs a debt-equity structure to finance its operations, with a large amount of debt relative to equity (Yie et al., 2021). It enables the company to maintain its financial flexibility and take advantage of low-cost financing.
Conclusion
In conclusion, Apple has a long history of success in technology. The company is a leader in the retail and consumer technology markets, with its products and services driving much of the industry’s innovation. Apple’s banking structure is a mix of debt and equity. Apple’s equity capital is mainly composed of retained earnings and common stock. The company is a leader in the retail and consumer technology markets, with its products and services driving much of the industry’s innovation. With a strong financial position, Apple is well-positioned to continue its success in the future.
References
Al Mheiri, R., Al Hosani, N., Saif, E., & Nobanee, H. (2021). Ratio analysis of Apple.?Available at SSRN 3895231.
Euroconsumers. (2021). Apple did it again: consumer organizations ask for justification of obsolescence practices reported for recent iPhone models.
Yie, W. L. S., Chan, K. Y., & Lim, F. P. (2021). Estimation of value at risk for stock prices in the mobile phone industry.?Data Analytics and Applied Mathematics (DAAM),?2(2), 14-26.
Yie, C. E., Zhi, C. E., & Ping, N. T. S. (2021). A Critical Analysis of Internal and External Environment: Case Study of Apple Inc.?Journal of International Business and Management,?4(10), 01-14.
Financial Management
Chrystal Fassett
Columbia Southern University
Financial Management
Dr. Russ Davis
Due 1-24-23

Apple Week 5 Financial Management
Which stock market exchange is the company listed on?
Look at the past three years worth of stock activity for your company.
What is the average stock price during that period?
What was the high/low price?
How many shares of stock are outstanding? Authorized? Issued?
Apple Inc. is a corporation that has maintained a healthy financial position over the previous several years and is traded on the NASDAQ stock exchange. The company has an average stock price of $197.55 per share and a current value of $302.74 (Yahoo Finance, 2023). Apple’s stock is deemed to have a lower level of risk due to an improving trend in the world of finance. During the past three years of stock activity, Apple’s shares have had a high price of $ 302.74 and a low price of $ 139. 14 (Yahoo Finance, 2023). Apple’s finances are strong, and they show signs of further advancement, demonstrating that there is scope for the company’s stock value to increase in the years to come. As of January 2023, Apple’s total number of issued and outstanding shares is 16,030,382,000. In addition, a total of 6,213,840,000 shares are approved for the corporation. Apple’s ability to generate adequate income, which increases the firm’s liquidity and efficiency, ensures that investors will get a return on their investment if they choose to put their money into the company. Apple’s revenue enables the company to either keep its profits and reinvest them, giving investors more wealth, or to share those earnings as required.
Has the company ever initiated a stock split?
The purpose of a stock split is to make the stock more accessible to a wider range of investors by reducing the per-share price. Apple has split its stock five times since it went public. The last stock split was a 4-to-1 split, which occurred in August 2020 (Investor Apple, 2023). This means that for every share of Apple stock that an investor owned, they received four additional shares, effectively reducing the stock’s per-share price by a factor of four.
Compare this companys stock to another company within the same industry. How does the stock compare in terms of price and activity? Explain.
Dell is a company whose stocks are similar to those of Apple. Apple and Dell are both technology companies with a strong presence in the personal computer and consumer electronics markets. They have been competitors for many years. Apple has historically been known for its design-centric approach and has a strong brand and loyal customer base. Apple has a more diversified product line and generates significant revenue from its services and wearables businesses, in addition to its hardware. Apple has a higher Price-to-Earnings ratio and a higher market capitalization than Dell. On the other hand, Dell has traditionally been known for its focus on enterprise and corporate customers and has a strong presence in the server and storage markets. Dell has a more limited product line than Apple and generates most of its revenue from PC sales. Dell has a lower Price-to-Earnings ratio and a lower market capitalization than Apple.
In terms of stock price, Apple, as of January 20, 2023, closed at $ 137.87. On the other hand, Dell closed at $ 40. 26 in the same period (MarketBeat, 2023). In recent years, Apples stock has been affected by several factors, such as the global pandemic and the trade war between China and the United States, but it has generally performed well. In 2021, the stock price reached an all-time high of $157.92 on August 19 and $132.00 on December 31, 2021 (Team, 2021). On the other hand. Dell’s return on investment (ROI) reached an all-time high of over 72 in 2008, but it had declined to a total of less than half by 2013. Apple demonstrated that it is better to do things slowly and steadily to achieve success by achieving growth of around 20% throughout the same five-year period. From this analysis, Apple is more profitable than Dell.
In terms of stock performance, Apple’s stock has performed better than Dell’s stock over the past few years. However, many factors can affect stock performance, and past performance is not indicative of future results. It’s important to thoroughly analyze a company’s financials, management, industry trends, and other factors before making investment decisions.
Would you invest in this company based on what you have evaluated? Why, or why not?
I would not invest in a company based solely on its stock price, performance, and stock activity. It’s important to thoroughly analyze a company’s financials, management, industry trends, and other factors before making an investment decision. This includes analyzing the company’s revenue, earnings, cash flow, and other financial metrics, as well as assessing the company’s competitive landscape, the potential for future growth, and management’s track record. I also consider my financial situation, risk tolerance, and investment objectives before making any investment decisions.

References
Investor Apple. (2023). FAQ. Apple. Retrieved January 21, 2023, from https://investor.apple.com/faq/default.aspx#:~:text=back%20to%20top-,How%20many%20times%20has%20Apple’s%20stock%20split%3F,%2C%20and%20June%2016%2C%201987.
MarketBeat. (2023, January 21). AAPL competitors 2023: Apple Alternatives. MarketBeat. Retrieved January 21, 2023, from https://www.marketbeat.com/stocks/NASDAQ/AAPL/competitors-and-alternatives/
Team, T. (2021, April 16). Apple vs. Dell Technologies Stock: I hope you made money. Forbes. Retrieved January 21, 2023, from https://www.forbes.com/sites/greatspeculations/2021/03/10/apple-vs-dell-technologies-stock-hope-you-made-money/?sh=6cc6f2601a77
Yahoo Finance. (2023, January 21). Apple Inc. (AAPL) valuation measures & financial statistics. Yahoo! Finance. Retrieved January 21, 2023, from https://finance.yahoo.com/quote/AAPL/key-statistics/

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