Financial Statement Analysis

-Sheldon Goradia

https://upload.wikimedia.org/wikipedia/commons/thumb/3/36/McDonald%27s_Golden_Arches.svg/2000px-McDonald%27s_Golden_Arches.svg.png
https://upload.wikimedia.org/wikipedia/commons/thumb/f/fa/Apple_logo_black.svg/2000px-Apple_logo_black.svg.png

Purpose of the analysis

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To compare the Financial statements put out by both company ● The purpose of this research is to analyze the basic financial ratios of

Levi Pharmacy and compare them the average figures of Finnish

pharmacies.

→ Based on this analysis the recommendations for the future.

● The key challenge

● The main turnover comes during the ski season (Dec – Apr)

● The fixed costs must be paid the whole year

X The purpose of the analysis done on McDonalds and Apple was to analyze the financial ratios of both companies

X Use the data to analyze how the business is functioning and more detailed analysis on the financial information

X This presentation focuses more on the analytical analysis of both the companies accounts.

Business Profile

Apple Inc. is an American multinational

technology company

Cupertino, California

They designs, develops, and sells

consumer electronics, computer

software, and online services.

–

Globally Recognized

https://en.wikipedia.org/wiki/Technology_company
https://en.wikipedia.org/wiki/Cupertino,_California
https://en.wikipedia.org/wiki/Consumer_electronics
https://en.wikipedia.org/wiki/Software
https://en.wikipedia.org/wiki/Software
https://upload.wikimedia.org/wikipedia/commons/thumb/f/fa/Apple_logo_black.svg/2000px-Apple_logo_black.svg.png

They sell

– Large variety of consumable products

– They provide services such as birthday parties

American Fast Food Company

https://upload.wikimedia.org/wikipedia/commons/thumb/3/36/McDonald%27s_Golden_Arches.svg/2000px-McDonald%27s_Golden_Arches.svg.png

MAIN RATIOS

Current Ratio – 1.12

Quick Ratio – 1.09

Cash Ratio – 0.57

https://upload.wikimedia.org/wikipedia/commons/thumb/f/fa/Apple_logo_black.svg/2000px-Apple_logo_black.svg.png

Current Ratio – 1.53 Quick Ratio – 1.52 Days in Inventory – 1.8

https://upload.wikimedia.org/wikipedia/commons/thumb/3/36/McDonald%27s_Golden_Arches.svg/2000px-McDonald%27s_Golden_Arches.svg.png

Horizontal analysis (trend) – Common Size

Values in Millions

Fiscal Period September 2016 2017

Debt 19 877 –

Finance – 133,967

Operating income (EBITDA)

70 529 71 501

Capital Expenditure 12 734 12 451

Revenue Estimate

Current Qtr. (Dec 2018)

Next Qtr. (Mar 2019)

Avg. Estimate 84.26B 59.33B

Low Estimate 83.19B 55.24B

High Estimate 91B 64.19B

Year Ago Sales 88.29B 61.14B

Sales Growth (year/est)

-4.60%

https://upload.wikimedia.org/wikipedia/commons/thumb/f/fa/Apple_logo_black.svg/2000px-Apple_logo_black.svg.png

Apple McDonalds

Forecasting

Apple Forecast

The result of an analysis done showed that Apple has a median target of $182.50 X The Estimate goes as high as $300 X The lows being in $140.00

he median estimate

represents a

X +17.79% increase from the

last price of 154.94.

McDonald Forecast

Conclusions / Recommendations

X Address the China Issue

X Find ways around it as it is effect the company

X Sell more products like the XR

X Focus on culture

Information sources

Apple’s Website/Financial

Section

– 10-K Annual Report

McDonald Website/Financial Section

– McDonalds Financial Report

2017 (10-K)

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