COMPANY NAME Pfizer PLEASE ADD AS MUCH IN DEPTH DETAIL AS YO

-COMPANY NAME Pfizer PLEASE ADD AS MUCH IN DEPTH DETAIL AS YOU CAN.

As the new financial manager of your company, the CEO has asked you to provide a brief analysis of the company\'s performance to present at the upcoming board of directors meeting. The CEO has asked that you assess the company\'s performance against your company\'s industry. Thus, to do this, you will need to use ratio analysis or other techniques to determine areas in which the company is doing well, as well as areas that management should look at. ( you can pick the company) Determine which company you will analyze. As such, be sure that the company has debt on its balance sheet, as this will be a requirement for future projects. Go to the website for your company and download the 10-K report for the most recent year. Perform your ratio analysis on your company: A good place to start would be to perform a complete DuPont analysis of the company. The DuPont analysis might provide guidance as to what particular areas of the company should be examined next and what ratios should be calculated. Be sure to include ratios that cover the following areas: i. Profitability ii. Debt Management ii. Liquidity iv. Asset Management v. Market Value In addition to the DuPont analysis ratios, be sure to present and discuss at least six relevant ratios that you team feels may best assess the company\'s performance Using an online database, such as bizstats.com or a similar database, capture the ratio averages for your company\'s industry to evaluate your company\'s performance Provide an analysis that compares your company\'s ratios to the industry standards. There is no need to explain the purpose of the ratios. Rather, be sure to provide an interpretation of the results. This may enta some research from news sources on the company\'s recent performance URGENT: NEED ANSWER ASAP PLEASE RESPOND WITH COPY AND PASTE, NOT ATTACHMENT USE ORIGINAL CONTENT NOT USED BEFORE ON CHEGG PLEASE ANSWER THROUGHLY TO ALL ANSWER TO BEST ABILITES ORIGINAL SOURCE NEVER USED BEFORE!!!

Solution

THE Company chosen to be analysed will be AAPL inc.

We wil go through various ratios to analyse the data.

The 10 K form has been downloaded for AAPLE inc to September 2017

First of all we will see the profitability ratio.

Profitability ratio:

The profitability ratio will explain the margins tested with its net turnover, the returns we earned on our

Investments

  

= 88186/229234*100

=. 34.46%

2. Net Profit Margin = Earning after tax/ Sales

  

   =. 48351/229234*100

  

   =. 21.10%

3. Return on asset = Net Earnings/total asset

  

           =       48351/375319

       =. 12.88%

4. Return on Equity = Net Income/stock holder equity

= 48351/134047

        =      0.36 times

Liquidity ratio= These ratios tells about how frequently and how we can manage our financial obligation

1. Quick ratio =. Current assets- prepaid expenses- inventory/current liabilities

=. 128645-4855/100814

            =. 1.22 times

2. Current ratio. =. current asset/current liabilities

= 128645/100814

   =. 1.28 times

3. Working capital =. Current assets- current liabilities

= 128645-100814 = 27831

Asset management ratio-

   =. 141048/4855

   =. 29.05 times

2. Days sales inventory ratio = 365/ inventory ratio

   =. 365/ 29.05 = 12.56 times

3. Receiveble turnover = sales/ receivables

    = 229234/17874

=        12.82 times

4. Average collection period = 365/ receivable turnover ratio

   = 365/ 12.82

= 28.47 days

5. Fixed asset turnover   =. sales/ net fixed asset

= 229234/228497

  

                     =. 1.003 times

Debt Management

Debt Ratio - Total Liabilities/ Total Assets

              241272/375319=

.64 times

Debt equity ratio = Debt/ Equity

              

               97207/134047  
              

               .72:1

Equity Multiplier =       Average total asset/average stockholder

                   375319/134047

                       2.79 times

When the ratios are being calculated and analysis has been made then it can be considered that the company is in stable form and making a favourable conditions. As we can see that capital mix is sufficient and somehow it can increase the leverage point to some extent because as per industry standards the mix should be 1:2 and whereas we have .72:1 in our calculations.

We have taken out the data for industry standards from investing.com.

Comparing the same, we get a net margin more than the industry’s standard which is 17.01%. It shows the performance of the company is not adversely affected but the same has shown some positive affect. AAPL is adequately keeping check on meeting its daily financial activities and so its maintaining the quick and current ratio as per the standard rates and meeting the requirements optimal.

Other than this, while reviewing the efficiency ratios we can check that asset to turnover is performing sufficient but behind the industry standards and so either we need to re check the loophole as why we are not meeting what is required per industry. Either we need to asses the asset consumption or look at the turnover.

Proceeding to the profitability and management ratios we will make an analysis that there is not such a huge difference in the levels of industry and its own. Firstly they are showing positive increase and variation upto a level which can be covered in a short while

As we can summarise, AAPL is doing good with the financial health looking at the data and its been consistent in its revenue generation and profit management from past 3 years. Along with it looking out from shareholder perspective it s meeting the requirement of EPS for these years a,d for the recent year it has dividend for $2.40.

The ratios are summarised above based on financial data provided in company’s 10K form and industry standards have been collected from Investing.com