6.5: Financial Ratios in Action

Here is Costco’s more recent (2021) report:

https://investor.costco.com/static-files/0878117f-7f3f-4a77-a9a5-c11a2534e94d

Apple Computers issued a huge amount in debt in 2013 in spite of its having, at the same time, a great, as in really a lot, deal of cash. Here’s why they sold (a.k.a., issued or borrowed) debt. [4]

Here are Apple’s Balance Sheets from 2005-2019 [5] . Notice how Long-term Debt went from zero to $17 Billion from 2012 to 2013. Calculate its Debt-to-Assets ratio for both years.

1. 1Costco. (2019). 2019 Annual report: Fiscal year ended September 1, 2019. Costco investor relations. https://investor.costco.com/static-f...b-5e456e5a0f7e ↵
2. 2General Motors Corporation (2007). General Motors Corporation 2007 annual report. Annual reports. https://www.annualreports.com/Hosted...SE_GM_2007.pdf ↵
3. 3Isidore, Chris (2009 June, 2) GM bankruptcy: End of an era. CNN Money. https://money.cnn.com/2009/06/01/new...gm_bankruptcy/ ↵
4. 4References Balassi, J., & Cox, J. (2013). Apple wows market with record $17 billion bond deal. Retrieved Sep 20, 2021, from https://www.reuters.com/article/us-a...93T10B20130430 ↵
5. 5https://www.macrotrends.net/stocks/c.../balance-sheet ↵