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Using Apple’s 10-K, answer the following questions (Hint: It may be easier to use the Word or
PDF file and use the search feature within the program):
1. Calculate Apple’s current, quick, and cash ratios for 2015 and 2016. The industry averages for
these ratios for 2016 were 1.72, 1.41, and 0.77, respectively. Comment on Apple’s short-term
liquidity.
As far as their current ratio Apple is capable to pay off their short term debt and will continue to
have no issues as long as it stays above 1.
2. Calculate Apple’s debt to equity, long-term debt to equity, and times interest earned (accrual
basis) for 2015 and 2016. The industry averages for these ratios for 2016 were 52.42%, 36.41%,
and 13.83, respectively. You will need to read Note 3 to find the amount of interest expense.
Comment on Apple’s mix of debt and equity and long-term solvency.
Apple is very well rounded as far as Long term debts and short term debts. Apple does well with
keeping their short term debts or debts from year to year below 4 billion.
