Financial and Profitability Ratios Of Apple and Google Analysis

Assignment: Financial and Profitability Ratios

3.1, 3.5

Review “How to Conduct a Case Analysis” on p. 457–67 in Strategic Management.

Review the income statements from Apple and Google:

· Apple’s Income Statement

· Google’s Income Statement

Calculate financial and profitability ratios using the income statements, including:

· ROA (return on assets)

· ROE (return on equity)

· ROR (Return on revenue)

· net income

· growth margin

· EBITDA (Table 1, p. 396; es-1)

Note: It is possible to research some of these ratios. If you use research to find them, cite them properly.

Write a 250 word description of the business models of Apple and Google, including a response to the following question:

· What do these financial ratios tell you about the business model?