Bus 5110 Managerial Accounting - Discussion Forum Unit 8

UNIVERSITY OF THE PEOPLE MASTERS IN BUSINESS ADMINISTRATION (MBA) BUS 5110: MANAGERIAL ACCOUNTING DISCUSSION FORUM UNIT 8 Profitability, Liquidity, Solvency, and Market Valuation Ratios DR JACENT GAYLE JANUARY 20221 | P a g e I refer back to Apple, Inc. Manufacturing Company and assessing the financial statements using the acquired ratio tools in the course. Selecting one profitability, liquidity, solvency, and market valuation ratio and evaluating the results. Based on the findings, post an initial response on: What the metrics tell you about the companys performance? Supporting the answer by explaining the results from the assessment. If you were considering investing in the company, what other questions would you ask to gain further insight into the performance? Solution Profitability Return on assets indicates net income generated for the normal dollar invested in assets. Apple, Inc. Manufacturing Companys decreased Return on Assets drew criticism from hedge fund D.E. Shaw, demanding that Apple, Inc. be divided up due to unsuccessful efforts to control costs, alleging they could save $1 billion yearly. If actualized, this saving would reduce operating expenses and SG&A hence, higher net income and return on assets. 2019 2018 2017 2016 Industry AVG (2018) Net Income 2,306,000 2,203,000 1,518,000 1,635,000