Assignment: Financial and Profitability Ratios
Review “How to Conduct a Case Analysis” on p. 457–67 in Strategic Management.
Review the income statements from Apple and Google:
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?