Liquidity Ratio

8 7 6 5 4 3 2 1 0 Yr 81 Yr 86 Yr 91 Yr 96 Yr 98 Yr 00 Yr 02 Yr 04 Yr 06 Yr 08 Yr 09 Yr 10 Current Ratio Quick Ratio

Current Ratio Davids book 1981 1986 1991 1996 1998 2000 2002 2006 2008 2009 2010 3.78 7.02 2.99 1.56 1.67 2.46 3.05 2.4 2.61 2.42 2.01 Pearces book

Quick Ratio Pearces book 1981 1.98 1986 2.38 1991 1.38 1996 1.3 1998 1.63 2000 2.44 2002 2.9 2006 2.37 Davids book 2008 2009 2.56 2.38 2010 1.96

Current Ratio Current ratio depicts the total current asset over total current liabilities. This mean the more higher is more good, when we look about the trend of current ratio from the year 1981 to year 2010 is fluctuate. For the last 5 years, the current ratio showing decrease trend. This mean the total amount of current asset slightly decrease to pay the current liabilities. However, Apple inc showing the stable rate for current ratio, this meaning firm has the ability to meet its short term obligation. Most analysts suggest a

current ratio of 2 to 3 is considered good. When we look the ratio for all the years, start from the year 1981 to 2010, almost of them achieved that target which is between 2 and 3. The most higher current ratio are the years 1986 which are 7.02, and the most lower is the years 1996 which are 1.56 times. However , the year 1996 is still consider good, this is because they are more 0.56 current asset left after paying all obligation they should paid for short term liabilities, which are should paid not less than 1 years. Quick Ratio Quick ratio illustrates the total current asset (exclude inventories) over total current liabilities. This mean the more higher is better. The inventory is should be excluding from the total current assets, this is because some of inventories is slow-moving and obsolescent and this can overstate the performances of Apple Inc. Quick ratio, can be considered as good, when is more than 1. The ability of Apple Inc for paying their short term debt is good, this mean that Apple Inc is effective use of its assets. . When we look the ratio for all the years, start from the year 1981 to 2010, almost of them achieved that target which is1. The most higher current ratio are the years 1986 which are 2.38 and the most lower is the years 1996 which are 1.3 times. For the last 5 years, the quick ratio showing decrease trend. This mean the total amount of current asset after exclude inventories slightly decrease to pay the current liabilities. However, Apple inc showing the stable rate for quick ratio, this meaning firm has the ability to meet its short term obligation