Analysis on Unusual Current Ratio of Apple Based on Annual Report 2017-2023

Abstract

Apple, as the leading company of technology industry, plays a significant role on the manufacture and sale of electronical devices. Therefore, it is worth to analyze its financial situations. However, its most updated data of unusual current ratio has not been widely noticed. On one hand, its current ratio has dropped to less than 1 since March 2022, underlying its current asset is not adequate to cover up its current debt. On the other hand, its high profitability ratio shows Apple appears to be a fairly prosper firm and is nearly impossible to fall in the foreseeable future. This paper focuses on Apple’s balance sheet and income sheet by using the method of collecting the data from Apple’s financial report from 2017 to 2023 and then analyzing the correlation. The result of the research demonstrates that Apple is still considered safe despite its low liquidity and high risk since it has enormous cash and market securities to pay off its debt.