Financial analysis Apple Inc.

An in-depth analysis of a company of your choice. This project would require the following: – A Financial analysis covering ratio and other analysis and comparison with competitors, taking account of accounting, institutional and environmental differences. This section would include such things as: • Analysis of the financial statements of the company using ratios and other appropriate techniques (e.g. trend analysis) and covering at least three years. When the company is compared with competitors, differences in GAAP, accounting policies etc. should be taken into account so as to ensure that like is compared with like, as far as possible. The impact of accounting policies and accounting treatments should also be taken into account. • Comparison of the company with its main competitors (or with industry averages) involving both absolute data and ratios. This requires identification of the markets of the chosen company and the nature of competition within them. • Consideration of how the company deals with financial risks such as interest rate and foreign exchange risks. – Explanation of how the EPS forecasts in the analyst’s report have been arrived at, with some explanation of the assumptions which underlie the forecasts. You should also explain how you have valued the shares in order to arrive at your investment recommendation Software/ Quantitative Skills: This project does not require sophisticated quantitative skills and can be completed using Excel. Suggested Reading: Palepu, K. G., Healy, P. M., Bernard, V. L. and Peek, E. (2007): Business Analysis and Valuation IFRS Edition, South-Western CENGAGE Learning, Chapters 1-7.