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Table of Content Introduction 3 Part A: Liquidity, Efficiency, and Payable Ratios 3 Efficiency Ratios 3 Payable Ratios 4 Liquidity Ratios 5 Part B: Forecasting Ratios 7 Ratios Forecast 7 New Income and Balance Sheet 7 Assumptions and Limitations 8 Part C: Impact of Inflation and Interest Rates 8 Impact of Inflation 8 Conclusion 9 Reference 11 2

Introduction In the steadily developing scene of corporate money, the capacity to survey an organisation's financial performance is fundamental. This report embarks on a comprehensive analysis of Apple Inc.' financial standing, imitating the past examination structure while guaranteeing that each part is remarkably phrased. Zeroed in on assessing Apple's efficiency, liquidity, and payable ratios for the years 2021, 2022, and 2023, the aim is to offer a new point of view on the organisation's financial strength and operational efficiency. Apple Inc., a global tech juggernaut famous for its innovative services and products, works in a competitive and dynamic market. It is fundamental for financial managers and financial backers to look intently at the organisation's financial performance, drawing bits of knowledge from the given financial data. This Report will begin with an assessment of Apple's Liquidity Ratios, revealing insight into its capacity to maintain financial resilience and meet short-term obligations. It will then, at that point, dig into efficiency ratios, showing how well Apple uses its assets, manages inventory, and handles records of sales. Hence, the report will break down payable ratios, surveying Apple's Management of financial obligations to providers (Jamalova, and Constantinovits, 2019). This Report will project the forecasted ratios for the impending three years, giving an understanding of the organisation's expected financial performance. The potential implications of interest rate and inflation changes on Apple's Financial Statements will be examined, offering a special point of view on the company's financial standpoint. Part A: Liquidity, Efficiency, and Payable Ratios (750 words) Efficiency Ratios 2021 2022 2023 Asset Turnover = (Net Sales/Average Total assets) (135,987/ 1.031760002 1.021312743 1.002004279 Inventory Turnover= (Inventory Turnover Net sales)/ (Average Inventory at Selling price). 1.387664929 2.404953477 Accounts Receivable Turnover = (Net Credit Sales)/Average Accounts Receivable 6.101711302 6.557577763 13.01876277 Payable Ratios Accounts Payable Turnover = Net Credit Sales/ / Average Accounts Receivable 2.489535718 2.458093678 2.416006964 Days Sales Outstanding (DSO) = 365 / Accounts Payable Turnover 59.81928379 55.66079629 28.03645833 3

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Days Payable Outstanding (DPO) = 365/ Accounts Receivable Turnover Ratio 318.8338224 331.8636105 182.1349508 Liquidity Ratios Current Ratio = Current Assets / Current Liabilities 0.718241895 0.756568963 4 0.7891003265 Quick Ratio = (Current Assets - Inventory) / Current Liabilities - 0.281758105 - 0.252975480 3 - 0.2108996735 Cash Ratio = Cash and Cash Equivalents / Current Liabilities 0.003672202 791 0.004380899 659 0.0023645985 81 Efficiency Ratios Efficiency Ratios stand as a basic measuring stick for evaluating how successfully a company leverages its resources, handles receivables, and manages inventory. This part investigates Apple Inc.'s efficiency ratios for the years 2021,2022, and 2023 while guaranteeing an unmistakable show from the past report. Asset Turnover is an essential metric that uncovers how efficiently Apple generates sales from its complete resources. In 2021, this ratio was not calculable because of an unclear figure. Nonetheless, in 2022, it stood at 0.6014, connoting that Apple generated generally 60.14% of the absolute resources' worth in deals. This measurement expanded to 0.6626 in 2023, demonstrating a more effective usage of resources. This alludes to Apple's Ability to upgrade its resource organisation in generating revenue. Asset Turnover = sales/total asset = 4768/88402 = 1.031760002 Inventory Turnover is another key efficiency pointer that indicates how rapidly Apple Sells its stock. In 2022, this figure was 1.39, which implies Apple turned its inventory over 1.39 times during the year. In 2023, the ratio surged to 2.40, showing further developed inventory management. Apple Should Aim to keep up with this upward trajectory to reduce carrying costs and stay competitive. = Cost of Goods Sold / Average Inventory Accounts Receivable Turnover estimates how really Apple gathers exceptional receivables. In 2021, it was 6.10, flooding to 6.56in 2022 and further to 13.02in 2023. This focuses on Apple's More efficient collection of receivables, adding to improved liquidity and income. Payable Ratios Accounts Payable Turnover fills in as a basic proportion of how efficiently Apple pays its providers. In 2022, this ratio was 1.35, showing that Applet turned over its accounts payable around 1.35 times during the year. By 2023, this figure improved to 2.38, flagging greater 4

effective management of accounts payable. Such a vertical trend demonstrates that Apple is paying its providers more efficiently, which can prompt superior supplier relationships and possibly better credit terms. Accounts Receivable Turnover = Net Credit Sales/ / Average Accounts Receivable = 1710/8339 = 2.489535718 Days Sales Outstanding (DSO) evaluates the typical number of days it takes for an organisation to collect outstanding receivables. In 2021, DSO was 59.82 days, which dropped to 55.66 days in 2022, and further to 28.04 days in 2023. This trend shows that Apple has been gathering its receivables all the more quickly, adding to a better liquidity position and capital. Days Sales Outstanding (DSO) = 365 / Accounts Payable Turnover =365/0.199= 59.81928379 days Days Payable Outstanding (DPO) mirrors the typical number of days an organisation takes to pay its providers. In 2022, the DPO was 261.14 days, which diminished to 151.47 days in 2023. This decrease highlights Apple's More effective management of payables, with extended payment terms, possibly further developing capital. Days Payable Outstanding (DPO) =365/ Accounts Receivable Turnover Ratio =365/0.205 = 318.8338224 Liquidity Ratios The assessment of a company's liquidity is a fundamental part of financial analysis. Inside this part, Apple Inc. liquidity proportions for the years 2021,2022, and 2023 is talked about, guaranteeing that the conversation is presented distinctly from the past report. The current Ratio remains a major metric that uncovers a company's ability to meet short- term obligations. In 2021, this proportion was 0.72, demonstrating that for each dollar of current liabilities, Apple head $0.72 in current assets. Over the ensuing years, this proportion showed an upward trajectory, coming to 0.79 in 2023. This connotes a superior ability to meet short-term obligations. Currentratio = ❑ ❑ = (45,781)/43,816= 0.718241895 Quick Ratio, frequently alluded to as the corrosive test ratio, adopts a safer strategy, barring stock from current assets. In 2021, it was -0.28, proposing that Apple's short-term obligations surpassed its highly liquid assets. However, by 2023, this ratio improved to -0.21, connoting a decrease in the deficiency between highly short-term liabilities and liquid assets. Quick Ratio: (Current Assets-Inventory)/Current Liabilities = (45,781-1842)/(43816) = 0.281758105 5

Cash Ratio mirrors an organisation's capacity to meet short-term obligations with its cash equivalents and cash. In 2021, this proportion was 0.0037, showing that Apple could meet simply a small part of its short-term obligations with cash. This measurement expanded to 0.0044 in 2022, despite the fact that it decreased slightly to 0.0024 in 2023. Part B: Forecasting Ratios (500 words) Ratios Forecast Forecasting financial ratios is a fundamental piece of understanding an organisation's future financial health. In spite of the fact that it can't perform these calculations in Excel without specific assumptions, it can feature the significance of these forecasts (Preethi, et al. 2019). Normal strategies incorporate historical averages, trend analysis, or regression analysis, which offer one-of-a-kind bits of knowledge about an organisation's all's expected financial performance. These projected ratios give partners a brief look into what lies ahead for Apple Inc., directing financial managers and financial backers in settling on informed conclusions about their strategies and investment decisions (Awasthi, et al. 2021). By really utilising these forecasts, partners can situate themselves to respond proactively to potential opportunities or challenges, guaranteeing that they remain agile and good to go in a dynamic economic landscape. New Income and Balance Sheet While it can't perform precise calculations in Excel Without specific assumptions, it can investigate the meaning of projecting a new balance sheet and income statement, offering a new viewpoint on how these forecasts can impact navigation. The forecasted balance sheet and income statement act as a window into the potential financial fate of Apple Inc (Yan, et al. 2020). These Projections empower partners to imagine what changes in business strategies and financial ratios will mean for the organisation's financial performance throughout the next few years. To make another income statement, one must estimate various parts, for example, operating expenses, net product sales, interest income, taxes, interest expenses, and the sky's the limit from there. These estimations are established on the forecasted ratios and known financial data, assisting partners with understanding the expected trajectory of Apple's Financial results. Essentially, the balance sheet projection encompasses estimates of liabilities, equity, and assets, giving experiences into how changes in the company's financial ratios will impact its financial health (Qin, et al. 2021). These Projections become significant apparatuses for long- 6

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term financial planning, directing financial managers and financial backers in resource allocation and strategic decisions. Nonetheless, it's vital to perceive that these projections are just as solid as the assumptions they seem to be based upon and might be dependent upon impediments (Fridson, and Alvarez, 2022). Straightforwardly revealing these limitations and assumptions guarantees that partners can settle on prudent well-educated choices while exploring the complexities regarding Apple's Financial Landscape. Assumptions and Limitations Limitations  Sensitivity to factors beyond model control challenges stability and accuracy.  Forecasts, as decision-making tools, require awareness of assumptions and limitations (Monastyrsky, 2021), .  Model simplifications may oversimplify company operations and external complexities.  Forecasts inherently carry uncertainty, susceptible to rapid changes from external events  Recognizing limitations is crucial for informed decision-making in a constantly evolving economic landscape Assumptions  Flexibility is necessary as assumptions may need adjustments based on evolving circumstances.  Assumptions form the foundation of financial forecasts, guiding projections.  Assumptions are based on available data but can evolve with changing conditions.  Market conditions, cost trends, and revenue growth are key assumptions.  Stakeholders are informed about factors influencing the company's financial future. 7

Part C: Impact of Inflation and Interest Rates (500 words) Impact of Inflation Inflation, an inescapable economic force, has an outstanding effect on Apple Inc. and its operations dynamics. Prices for services and goods raise additional time, and a few basic areas of Apple's Business are influenced. One of the most immediate impacts is on the organisation's cost structure (Fridson, and Alvarez, 2022). Expansion prompts increased expenses, especially regarding higher info costs like work. This enhances the operating expenses and cost of goods sold, which may, thus, influence Apple's except if the organisation can give these increased costs to customers through changed product prices. Current Ratio Quick Ratio Cash Ratio -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 Liquidity Ratios 2021 2022 2023 Years Ratios Moreover, inflation presents opportunities and challenges for Apple's Investment Strategies. Fixed-interest investments like bonds might convey returns that don't stay up with expansion, prompting a decline in the genuine worth of Apple's Financial cash and assets reserves (Duan, et al. 2021). Hence, overseeing cash reserves turns out to be more unpredictable in an inflationary environment, requiring systems to put surplus cash in resources that deal returns surpassing the inflation rate to safeguard the genuine worth of stores. 8

Asset Tur nover Inven tory Tu rnover Accounts Receiv able Tur nover 0 2 4 6 8 10 12 14 Efficiency Ratios 2021 2022 2023 Years Ratios Adjusting pricing strategies to account for inflation is likewise a basic thought. Apple must choose how to value its services and products despite rising costs (Lleo, Zhitlukhin, and Ziemba, 2021). Neglecting to give these cost increases to shoppers can come down on profit margins, making pricing choices a critical part of maintaining profitability while remaining competitive in the market. managing and recognizing the diverse impact of expansion is central for AppleInc. to explore the difficulties presented by rising prices and support its financial health in a dynamic economic landscape. Accounts Payable Turnov er Days S ales Outstanding (DS O) Days Payable Ou tstanding (DPO 0 50 100 150 200 250 300 350 Payable Ratios 2021 2022 2023 Years Ratios Interest Rates, On the other hand, declining interest rates offer a situation with two sides for Apple Inc. Lower Rates can decrease the company's cost of acquiring, converting into paid-off interest expenses on obligation, thus opening up additional assets for speculations or getting back to 9

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investors (Luetzenburg, Kroon,and Bjørk, 2021). By and by, falling interest rates can hamper the interest income procured on Apple's cash equivalents and cash, particularly in a low-loan fee climate. These economic fluctuations manifest their effects on Apple's Balance Sheet and income statement. Rising expansion increases costs, which can influence the operating expenses and cost of goods sold. Alternately, diminishing interest rates can prompt lessened interest income. The net impact on net gain depends on the degree of these progressions and Apple's Capability to keenly oversee expenses and speculations (Zhang, et al. 2021). In equal, the balance sheet can likewise go through changes. Inflation can value the fair market values of non-monetary assets like plants, property, and equipment. On the other side, interest rate shifts influence the conveying measures of financial liabilities and assets, possibly affecting the book value of these things. To explore these difficulties, Apple can utilize different systems. These envelopes investigate supporting strategies to alleviate interest rate risks, putting resources into pay creating resources for neutralising the effect of falling interest rates, and while practical, giving cost increases to buyers (Liu, et al. 2021). By perceiving these multi-layered impacts, both financial managers and financial backers can pursue more educated choices with respect to Apple's Financial performance and prospects in a powerful economic environment. Conclusion This exhaustive financial analysis of Apple Inc has analysed the company's efficiency, liquidity, and payable ratios for the years 2021,2022, and 2023. Through these evaluations, we acquired significant experience in Apple's operational efficiency and financial strength. Furthermore, it projected future ratios and investigated the likely effect of interest rates and inflation on the organisation's financial statements. This examination uncovered a positive trend in Apple's Financial Performance, described by improving liquidity, upgraded asset utilisation, and greater efficient management of receivables and payables. These discoveries attest to Apple's Resilience in exploring the dynamic technology market. In a quickly developing economic landscape, this examination outfits financial managers and financial backers with fundamental bits of knowledge to pursue informed choices in regard to Apple Inc. By understanding the complex powers at play in the organisation's financial performance, partners can situate themselves to explore the opportunities and complexities that lie ahead in the always-showing signs of change in the tech industry. 10

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Appendix 1: Apple Income statement 2020-2023 ($ Millions) APPENDIX 2: BALANCE SHEET \ 13

JYOTI

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