Current Ratio: The current ratio is the liquidity ratio that helps measure the company's ability to pay short term and long term obligations. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Sales and operating income data in billions. The Rest of Asia Pacific segment includes Australia and Asian countries. The future for Apple is not a complete certainty either; what will be the next killer replacement for its soon decade-old iPhone? Apple, the maker of the popular iPhone, does not actually make the device itself.
The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The average weighted share count was reduced by 6. Capital structure ratios include debt to equity and debt to asset ratios, and liquidity ratios include coverage ratios and solvency ratios. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. For example, when you search for a film, we use your search information and location to show the most relevant cinemas near you. The absence of an overvaluation makes Apple stock most likely a safer bet.
However, most analysts and media outlets focus their attention on the latest announcements from the company, such as the recently launched iPad Air 2 or the iPhone 6 and iPhone 6 Plus models. This is clearly due to the company's brand differentiation and pricing power, which has a big impact on profitability levels. Apple Inc has a current ratio of 1. A satisfactory gross margin leaves room for Apple to more easily manage operating expenses and other nonoperating costs, making it possible to achieve higher earnings growth year after year. Stock quotes provided by InterActive Data. Earnings per share data is split-adjusted. Sales and operating income data in billions.
A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. Oath and our partners need your consent to access your device and use your data including location to understand your interests, and provide and measure personalised ads. On one hand, the market is content with the rate of Apple stock's gain over time as supported by earnings growth. Oath will also provide you personalised ads on partner products. Security analysts use financial ratios to compare the strengths and weaknesses of various companies. However, not everything is bad news for Apple investors when it comes to growth rates lately.
However, Apple's various profitability ratios confirm the company's current business and financial success, which is being sustained by its stellar sales growth in recent years. The Americas segment includes North and South America. Attractive valuation Valuation levels have rebounded somewhat over the last year as investors applaud the company's improved financial performance and dynamic capital distribution policies, which include both. This will help ensure we can keep the site subscription-free in the future. Intraday data delayed per exchange requirements. Future sales growth will depend on multiple factors that are hard to predict, such as demand for the company's new products and the competitive landscape. Calculate the following ratios using Microsoft® Excel®: Current Ratio Quick Ratio Debt Ratio Inventory Turnover Ratio Receivables Turnover Ratio Total Assets Turnover Ratio Profit Margin Net Margin Ratio Return on Assets Ratio © BrainMass Inc.
Copyright FactSet Research Systems Inc. Other ratios such as return on assets and return on equity measure profitability over capital; these ratios tell us how good management is at producing profits for every dollar in assets or equity. Earnings per share data is split-adjusted. Benefiting from robust sales growth, plus healthy profit margins, Apple's yearly earnings growth was 43. Therefore, the sales growth rate is an important metric to watch as Apple goes through a period of transition from its current high growth to finding the next market opportunity.
In addition, Apple has is implementing a massive share repurchase program which is reducing the amount of shares outstanding and accelerating earnings-per-share growth. Net Profit and a company overall value indicator that also includes financial debt, cash position and minority interests which are key indicators when valuing a firm market value. All in all, financial ratios paint a promising picture for Apple investors. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. Profitability ratios include margin ratios such as profit margin or operating margin and return ratios such as return on equity or return on assets. By paying contract manufacturers fixed sums, Apple also saves on expensive production outlays. In no event shall GuruFocus.
Profit margins such as operating margin and net margin measure earnings as a percentage of sales, indicating how efficient the company is at generating profits for each dollar of revenue. Quarterly sales of the iPhone reached 74. The Greater China segment comprises of China, Hong Kong, and Taiwan. The current ratio is 1. It generally indicates good short-term financial strength.