Abstract

Apple Inc., the world’s largest technology company by revenue, led the global technology market by developing innovative products such as the Mac, iPod, iPhone, and iPad. The company had grown over the years by entering into various segments such as such as software, consumer electronics, and digital media content distribution. Apple had been consistent in its performance. However, FY19 was a challenging year for the company as it observed a decline in sales due to the Covid-19 pandemic. The case study provides detailed financial information about the company which would be useful for readers to conduct a ratio analysis, common size analysis, and common base analysis.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the different methods through which a company’s financial statement can be analyzed
• Examine and interpret the financial ratios of a technology company
• Analyze and interpret common size and common base statements of a technology company

Keywords

Ratio Analysis; Liquidity; Profitability; Leverage; Common Base income statement; Common Size income statement; ROE; ROA; NPM; Turnover Ratio