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Pick a company that you think is well run and find their latest 10k. Do you...

Pick a company that you think is well run and find their latest 10k. Do you think they are a well-run company after viewing their financial statements? Why?

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COMPANY WE WILL USE FOR OUR ANALYSIS IS APPLE INC. (2018 FINANCILA STATEMENT) Margins % of Sales Revenue COGS Gross Margin SG&A R&D 2009-09 2010-09 2011-09 2012-09 2013-09 2014-09 2015-09 2016-09 2017-09 2018-09 100.00 61.66 38.34 100.00 60.62 39.38 8.46 TTM 100.00 61.66 38.34 100.00 59.86 40.14 9.67 100.00 59.52 40.48 100.00 56.13 43.87 100.00 62.38 37.62 100.00 59.94 40.06 100.00 100.00 60.92 39.08 100.00 38.59 38.47 6.56 6.66 4.66 er Operating Margin Net Int Inc & Other EBT Margin 27.36 28.19 31.22 35.30 28.67 28.72 30.48 27.84 26.76 26.69 26.69 28.12 28.42 31.60 35.63 29.35 29.26 31.03 28.46 27 .96 27.45 27.45 Profitability Tax Rate % Net Margin % Asset Turnover (Average) Return on Assets % Financial Leverage (Average) Return on Equity % Return on Invested Capital % Interest Coverage 2009-09 2010-09 2011-09 2012-09 2013-09 2014-09 2015-09 2016-09 2017-09 2018-09 18.34 22.41 TTM 21.48 23.95 21.09 22.41 22.84 27.07 18.01 20.45 16.07 16.07 31.27 41.67 42.84 33.61 36.90 36.87 49.36 49.36 34.69 41.04 42.01 26.08 19.86 369.79 140.28 99.93 43.15 23.50 23.50

NET MARGIN: We can see that over 10 year i.e. (2009-2018) company maintained an average net margin of over 20% (which shows an excellent consistency of the company)

Return on Asset: Company have also maintained excellent Return on Asset Average of 21.11% over 10 years

Financial average: Company have increased its financial leverage i.e. current financial leverage is 3.41 which means if sales will grow by 10% PAT will grow by 10*3.41= 34.1% as we can see in their financial statement that over the last 5 year their sales growth rate is 10.57%

Interest Coverage Ratio: It is clearly visible the over the last 6 year company have maintained an Interest coverage ratio of 117.57 which is great indicator as compare to industry

Item 6. Selected Financial Data The information set forth below for the five years ended September 29, 2018, is not necessarily indicative of results of future operations, and should be read in conjunction with Part tem 7, Managements Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and related notes thereto included in Part I, tem 8 of this Form 10-K to fully understand factors that may affect the comparability of the information presented below (in millions, except number of shares, which are reflected in thousands, and per share amounts) 2014 2016 S 265,595 $ 229,234 215,639 233,715 182,795 S 59,531 48,351 S 45,687 $53,394 $ 39,510 2018 2017 2015 Net sales Net income Earnings per share Basic Diluted S 12.01 9.27 S 11.91 $ 8.35 $ 9.28 6.49 6.45 9.21 S 8.31 9.22 $ Cash dividends declared per share S 2.72 $2.40 S 2.18 1.98 $1.82 Shares used in computing earnings per share Basic 4,955,377 5,217,242 5,470,820 5,753,421 6,085,572 5,000,109 5,251,692 5,500,281 5,793,069 6,122,663 Diluted Total cash, cash equivalents and marketable securities Total assets Non-current portion of term debt Other non-current liabilities 237,100 $ 268,895 S 237,585 $ 205,666 155,239 S 365,725 $ 375,319 S 321,686 290,345 $ 231,839 S 93,735 $ 97,207 75,427 $ 53,329 $ 28,987 S 45,180 40,415 S 36,074 $33,427 24,826

2018 265596 229234 215639 233715 182795 2017 2016 2015 2014 AVERAGE GROWTH NET SALES PERCENGTAGE CHANGE IN NET SALE EPS DILUT

Company have maintained a net sale growth of 10.57% and its average EPS growth is 18.31% which is great for any large cap company

Company have able to grow 45.30% Net Sale growth of 5 year and EPS of 84.65% 5year growth

As we can see that Company is Growing Constantly in term of Sales and EPS Constantly hence we can say that it can be a good company to invest in for long term

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