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FIN 370 Week 3 Assignment, Financial Ratio Analysis (Apple)

Financial ratios provide comparisons of financial statement accounts in certain categories.  These analysis and comparisons between the financial statement accounts help investors, creditors, and internal management understand how well a business is performing and what areas need improvement. Financial ratios are the most common and widespread tools used to analyze a business’ financial standing. In performing a financial ratio analysis for Apple Inc. against one of its competitor’s Microsoft and against industry standards the following areas were addressed: Current Ratio, Inventory Turnover; Debt Ratios, Time Interest Earned, Gross Profit Margin, Equity Multiplier, Return on Assets, Net Profit Margin, and Return on Equity/DuPont Method.