For this assessment assignment, you will retrieve financial data from Apple Inc.’s most recent 10-K filing on the SEC Edgar website. You will then use this data to calculate key financial ratios. Finally, you will explain the purpose of these ratios and how a business could use them to evaluate its performance.
Instructions:
Begin by downloading the Ch 4 Assessment Assignment Answers File attached to this assignment. You will be entering all of your “answers” for this assignment on that Word document. Once you have finished, upload your saved Word document (or PDF file) in this assignment submission folder for grading.
The first step is to retrieve Apple Inc.’s most recent 10-K Annual Report from the SEC EDGAR site. (Directions on how to locate a 10-K on the EDGAR site are located below.) You will retrieve the required financial data from the Income Statement and Balance Sheet located in the 10-K report. This data will then be used to calculate the financial ratios we have studied thus far, the Return on Assets, Debt Ratio, and Current Ratio. Finally, you will explain the purpose of each of the ratios and how a business may use each of them.
SEC EDGAR Site
The SEC Edgar website is like a library for financial information about publicly traded companies. It’s where these companies submit their required reports and disclosures to the government. Investors and analysts use this site to access and review these documents, helping them make informed decisions about investing in stocks. It’s a tool for transparency and ensuring that investors have access to important financial information.
To Pull a 10-K Report from EDGAR
To access the site, go to: SEC.gov | EDGAR | Company Filings
Type in the name of the company you’re looking for in the “Company and Person Lookup) box. When you see the name of the company come up in the dropdown section, click on it.
Expand the “10-K (annual reports) and 10-Q (quarterly reports)” section of the “Selected Filings” box.
Review the short list of the most recently filed 10-K’s (annual reports) and 10-Q’s (quarterly reports) to locate the 10-K with the most recent date. Click on it.
You can now use the icon labeled “Sections” at the top to navigate to different sections of the report. If you want to go directly to the financial statements section, click on this option. Or, you can click on one of the other options depending on what you’re looking for.
