I need help making a financial decision about whether to invest or not invest, a

Question

I need help making a financial decision about whether to invest or not invest, and why/why not, (using the data provided from the income statement, balance sheet, and cash flow statement) in the company posted below:

AAPL Financial model-Saved to my Mac Insert Page Layout Formulas Data Review View Calibri (Body) 12 AA- Wrap Text General Copy Format B IU Paste 'A' ????? ?Merge & Center, $.96 , 68 ,00 Security Warning Extemal Data Connections have been disabled 89 fic 1 Apple Inc. (AAPL) Income Statement Dollars % of Sales s Revenue 6 Total Revenue 7 Cost of Revenue 8 Gross Profit 9 Operating Expenses o Research Development 9/30/1724/16 9/26/15 9/30/17 9/24/16 9/26/15 229,234,000 215,639,000 233,715,000 100% 100% 100% 141,048,000 131,376,000 140,089,000 62% 61%, 60% 198,000 84,263,000 93,626,000 38% 39% 40% 11,581,000 10,045,000 8,067,000 15,261,000 14,194,000 14,329,000 5% 7% 5% 7% 3% 6% - Selling General and Administrative 2 Non Recurring 13 Othens 14 Total Operating Expenses 15 Operating Income or Loss 16 Income from Continuing Operations 61,344,000 60,024,000 71,230,000 27% 28% 30% 2,745.000 1,348,000 1,285,000 196 1%1% 64,089,00061,372,000 72515,000 28% 28%, 31% Total Other Income/Expenses Net 18 Eamings Before Interest and Taxes 19 Interest Expense 20 Income Before Tax -- , 28% 64,089,000 61,372,000 72,515,000 15,738,000 15,685,000 19,121,000 28% 31% 8% Income Tax Expense 22 Minority Interest 3 Net Income From Continuing Ops 24 Non-recurring Events 25 Discontinued Operations 26 Extraordinary lItems 27 Effect Of Accounting Changes 28 Other ltems 29 Net Income 30 Net Income 31 Preferred Stock And Other Adjustments 32 Net Income Applicable To Common Shares 48,351,000 45,687,000 53,394,000 21 % 21% 23% 48,351,000 45,687,000 53,394,000 21% 21% 23% 48,351,000 45,687,000 53,394,000 21% 21% 23% 35 36 Balance Sheet Cash Flow Income Statement Ready

Explanation / Answer

As per my view It is not beneficial to invest in this company . The reasons for it are as follows

Here if we see the given last 3 years data or analyse it we can see that the sale of the company of 2017 gets decreased as compared to the 2015 data and also the cost of the revenue gets increased which both gives the negative thought towards it

and second one it that see that the operating income percentage also gets decreased from 30% to 27% although company has invested more funds in it as compared to 2017 and see that cash flow from financing activities are also gets decreased

and another reason for it that you can see the cash turnover ratio which is regularly decreased from last two years which also show the negative view on it and also we see that the investment in debt may increased by the company as in the 2015 the debt to total assets in 59% after that it increased to 60% and now in 2017 it is 64% which also show that this ratio is almost near about 2:1 if after that it increased it also shows negative impacts

and another point is that net income percentage is also gets decreased from 31% to 28% According to me it is also not good.

Although there are some good things in the company that the company can increase its liquidity which is also helpful for the company to achieve or grant various opportunities and also if we assume that there is a abnormal reason for the decreasing in sale of the company in 2015 to 2016 then this company may be beneficial to iinvest

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