Notes Essay

257 WordsFeb 8, 20122 Pages
As of May 10, 2010 S&P marked Apple Inc. in the top 10 companies of 500, showing it the largest by its price in Information Technology sector, which in turn, is the largest sector and takes 18.76%, even more than financial (Standardandpoors.com). Based on the information provided I would invest in Apple Inc. because it shows stable growth and expanding over the year revenue and profit (Apple.com). Based on Liquidity: Current ratio- current assets divided by current liability- 33,332/13,097 gives 2.55:1, so Apple shows good results, in the perspective of industry average of 1.28:1. Based on Solvency- Times Interest Earned ratio, income before taxes- billions- $4,758 (Apple,com) divided by interest expense- absent, Apple is 'on top' as well. Based on Profitability- Price-Earning ratio, earnings per basic share are as follows: $3.74 in 2009 and $2.64 in 2008 (Apple.com), while the price of stock itself is $253.99 as of today May 10, 2010 (Nasdaq.com). Price divided by earning (in 2009) gives the figure of 67.9 times, while the industry average is 26 times. So, the price per share to the earning per share shows more-than-average figure, but still it should be one of the most reliable investments. Resources: http://www.apple.com/pr/library/2010/01/25results.html http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AAPL&selected=AAPL

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