ASSIGNMENT UNIT 2
My investment would be in APPLE INC. because is a solid good company in which even government has shares, this company was made from private capital, in this order, it represents a good chance to invest.
Apple is a rapid growing company that supplies its very good products world wide, and it is known for its investment nationwide which reach more than 1 Billion dollars a year and it has a great performance in NYSE and the main Stock markets around the world which is a good warranty that I usually check in order to assure that my investments are well done and are in the proper place.
The main KPI I usually use in order to have information about the company to invest in, are Current Ratio, Acid Test (Liquidity), Receivable turnover ( activity), financial leverage, debt ratio, Degree of indebtness (debt), Gross Profit Ratio, Net profit Margin, Earnings per share, among others. …show more content…
It is the most widely used test of liquidity of a business and measures the ability of a business to repay its debts over the period of next 12 months.
Current Ratio = Current Assets Current Liabilities Apple Inc has a Ratio of 1.08 which means that has enough assets to pay debt in short term, and an additional 0.08 cents, when this indicator is below 1 it means that is critically low and represents liquidity problems.
Making a horizontal analysis show that the company has had a good performance in the recent years, but liquidity is decreasing year by year due to large investments which is a good sign.
QUICK RATIO The quick ratio or acid test ratio is a liquidity ratio that measures the ability of a company to pay its current liabilities when they come due with only quick assets. Quick assets are current assets that can be converted to cash within 3 months. Cash, cash equivalents, short-term investments or marketable securities, and current accounts receivable are considered quick
My investment would be in APPLE INC. because is a solid good company in which even government has shares, this company was made from private capital, in this order, it represents a good chance to invest.
Apple is a rapid growing company that supplies its very good products world wide, and it is known for its investment nationwide which reach more than 1 Billion dollars a year and it has a great performance in NYSE and the main Stock markets around the world which is a good warranty that I usually check in order to assure that my investments are well done and are in the proper place.
The main KPI I usually use in order to have information about the company to invest in, are Current Ratio, Acid Test (Liquidity), Receivable turnover ( activity), financial leverage, debt ratio, Degree of indebtness (debt), Gross Profit Ratio, Net profit Margin, Earnings per share, among others. …show more content…
It is the most widely used test of liquidity of a business and measures the ability of a business to repay its debts over the period of next 12 months.
Current Ratio = Current Assets Current Liabilities Apple Inc has a Ratio of 1.08 which means that has enough assets to pay debt in short term, and an additional 0.08 cents, when this indicator is below 1 it means that is critically low and represents liquidity problems.
Making a horizontal analysis show that the company has had a good performance in the recent years, but liquidity is decreasing year by year due to large investments which is a good sign.
QUICK RATIO The quick ratio or acid test ratio is a liquidity ratio that measures the ability of a company to pay its current liabilities when they come due with only quick assets. Quick assets are current assets that can be converted to cash within 3 months. Cash, cash equivalents, short-term investments or marketable securities, and current accounts receivable are considered quick