PRESENTATION ON:

THE CURRENT RATIO OF APPLE INC.

PRESENTED TO:
MR. KHURRAM JAWAD
PRESENTED BY:
RIZWAN UL HAQ
ALEEZA NAZAR
BISMA HAMEED
SANA JAMIL
 TABLE OF CONTENT

• INTRODUCTION OF COMPANY
• WHY WE CHOOSE THIS COMPANY
• RATIO ANALYSIS
• LIQUIDITY RATIOS
• CURRENT RATIO
• DATA OF COMPANY

• THE CURRENT RATIO OF APPLE

• GRAPH
• INTERPRETATION
 INTRODUCTION OF APPLE INC.

• APPLE IS AN AMERICAN CORPORATION THAT DEVELOPS AND SELLS COMPUTER ELECTRONICS,

SOFTWARE, PERSONAL COMPUTERS, AND PORTABLE DEVICES INTERNATIONALLY.
• FOUNDERS STEVE JOBS, STEVE WOZNIAK, AND RONALD WAYNE
• CEO OF APPLE IS TIM COOK
• ESTABLISHED IN 1976
• AFTER 2007, APPLE FINALLY ACHIEVED WIDESPREAD SUCCESS WITH THE LAUNCH OF THE IPHONE,
THE IPOD TOUCH, AND THE IPAD.
• IT IS TRADED ON THE NASDAQ UNDER THE TICKER AAPL. IT IS ALSO A PART OF THE NASDAQ-100
AND S&P 500.
 WHY WE CHOOSE THIS COMPANY

• THE TOP COMPANY IN THE WORLD

• WITH A MARKET CAPITALIZATION OF MORE THAN $2.6 TRILLION
• IT IS ALSO MORE VALUABLE THAN TESLA AND AMAZON COMBINE
• IT IS WELL KNOWN BECAUSE OF ITS UNIQUE PRODUCTS AND DIFFERENTIATION
• IT MAKES APPLE THE MOST VALUABLE COMPANY ON THE EARTH
 RATIO ANALYSIS

• RATIO ANALYSIS IS REFERRED TO AS THE STUDY OR ANALYSIS OF THE LINE

ITEMS PRESENT IN THE FINANCIAL STATEMENTS OF THE COMPANY.
• IT CAN BE USED TO CHECK VARIOUS FACTORS OF A BUSINESS SUCH AS
PROFITABILITY, LIQUIDITY, SOLVENCY AND EFFICIENCY OF THE COMPANY OR
THE BUSINESS.
 CURRENT RATIO

• THE CURRENT RATIO IS A LIQUIDITY RATIO THAT MEASURES A COMPANY'S

ABILITY TO PAY SHORT-TERM OBLIGATIONS OR THOSE DUE WITHIN ONE
YEAR.
• IT TELLS INVESTORS AND ANALYSTS HOW A COMPANY CAN MAXIMIZE THE
CURRENT ASSETS ON ITS BALANCE SHEET TO SATISFY ITS CURRENT DEBT AND
OTHER PAYABLES.
• WE NEED A BALANCE SHEET TO CALCULATE THIS RATIO.
• WE COLLECTED DATA FROM INVESTING.COM
 Period Ending: 202224/09 202125/09 202026/09 201928/09

Total Current Assets 135405 134836 143713 162819

Total Assets 352755 351002 323888 338516

Total Current Liabilities 153982 125481 105392 105718

Total Liabilities 302083 287912 258549 248028

Total Equity 50672 63090 65339 90488

Total Liabilities & Shareholders' Equity 352755 351002 323888 338516

Total Common Shares Outstanding 15943.42 16426.79 16976.76 17772.94

Total Preferred Shares Outstanding - - - -

In millions of USD (except for per share items)

 Apple Current Ratio Historical Data
Date Current Assets Current Liabilities Current Ratio
2022-09-30 $135.41B $153.98B 0.88
2022-06-30 $112.29B $129.87B 0.87
2022-03-31 $118.18B $127.51B 0.93
2021-12-31 $153.15B $147.57B 1.04
2021-09-30 $134.84B $125.48B 1.08
2021-06-30 $114.42B $107.75B 1.06
2021-03-31 $121.47B $106.39B 1.14
2020-12-31 $154.11B $132.51B 1.16
2020-09-30 $143.71B $105.39B 1.36
2020-06-30 $140.07B $95.32B 1.47
2020-03-31 $143.75B $96.09B 1.50
2019-12-31 $163.23B $102.16B 1.60
2019-09-30 $162.82B $105.72B 1.54
2019-06-30 $134.97B $89.70B 1.51
2019-03-31 $123.35B $93.77B 1.32
2018-12-31 $140.83B $108.28B 1.30
2018-09-30 $131.34B $115.93B 1.13
2018-06-30 $115.76B $88.55B 1.31
2018-03-31 $130.05B $89.32B 1.46
1.8

1.6
1.6
1.5 1.54 1.51
1.4 1.47 1.46
1.36 1.32 1.3 1.31
1.2
1.14 1.16 1.13
1 1.04 1.08 1.06
0.93
0.8 0.88 0.87

0.6

0.4

0.2

0
 INTERPRETATION

• A CURRENT RATIO OF 1.0 OR GREATER IS CONSIDERED ACCEPTABLE FOR MOST

BUSINESSES
• HOWEVER, WHEN EVALUATING A COMPANY'S LIQUIDITY, THE CURRENT RATIO
ALONE DOESN'T DETERMINE WHETHER IT'S A GOOD INVESTMENT OR NOT. IT'S
THEREFORE IMPORTANT TO CONSIDER OTHER FINANCIAL RATIOS IN YOUR
ANALYSIS

LESS THAN 1
Unacceptable 1 GREATER THAN 1
Acceptable
 INTERPRETATION

• APPLE AS CURRENT RATIO OF 0.88, INDICATES THAT THE COMPANY MAY HAVE
DIFFICULTY MEETING ITS CURRENT OBLIGATIONS
• LOW VALUES HOWEVER DON’T INDICATE A CRITICAL PROBLEM IF APPLE HAS
GOOD LONG-TERM PROSPECTS
• IT MAY BE ABLE TO BORROW AGAINST THOSE PROSPECTS TO MEET CURRENT
OBLIGATIONS
 INTERPRETATION

• POOR SALES OF IPHONE 14

• ITS TOP MARKETS, THE THE AMERICA CHINA, AND EUROPE ARE EXPERIENCING
ECONOMIC DOWNTURNS
• INFLATION HAS REDUCED THE CONSUMER’S ABILITY TO SPEND ON PHONES 14
• CUT OFF PRODUCTION
• SHIFTING OF PRODUCTION UNITS FROM CHINA TO INDIA DUE TO POLITICAL REASONS
• DECREASE IN NET INCOME OF $19.44 BILLION, FROM THE PREVIOUS YEAR’S NET INCOME
OF $21.74 BILLION
• THE STOCK LOST ALMOST $20 PER SHARE OVER 30 DAYS ($157.96 ON SEP 1,2022 AND
FINISHED THE MONTH AT $138.20 ON SEP 30, 2022