______________________________________________________________________________

SUBMITTED TO: SIR. HADI HASSAN KHAN

SUBMITTED BY: DOWLAT KHAN (40022)
SUBJECT: FINANCIAL STATEMENT ANALYSIS
PROGRAM: MBA (B&F)
SEMESTER: 5th
SECTION: A
SESSION: SPRING 2019

LAST DATE OF SUBMISSION: July 18th, 2019

 Contents
Apple Inc. ..................................................................................................................................................... 2
Financial Statements ................................................................................................................................... 3
Interpretation of Common-size Analysis .................................................................................................. 5
Cash and cash equivalents...................................................................................................................... 9
Short-term marketable securities .......................................................................................................... 9
Other Current Assets .............................................................................................................................. 9
Total Current Assets ............................................................................................................................... 9
Non-Current Assets ................................................................................................................................ 9
Current Liabilities .................................................................................................................................. 9
Total Liabilities ....................................................................................................................................... 9
Shareholders’ Equity .............................................................................................................................. 9
Net Sales, Cost of Sales and Gross margin ........................................................................................... 9
Net profit and Operating Expenses ..................................................................................................... 10
Interpretation of Ratios ............................................................................................................................ 10
Activity Ratios ....................................................................................................................................... 10
Liquidity Ratios..................................................................................................................................... 10
Solvency Ratios...................................................................................................................................... 10
Component Percentage ..................................................................................................................... 10
Coverage Ratios ................................................................................................................................ 10
Profitability Ratios ................................................................................................................................ 11
Margins .............................................................................................................................................. 11
Returns ............................................................................................................................................... 11
Three Factor DuPont for the Return on Equity................................................................................. 11
Other Ratios .......................................................................................................................................... 11
Earnings Per Share ........................................................................................................................... 11
Book Value Per Share ....................................................................................................................... 11
Price-to-Earnings Ratio .................................................................................................................... 11
Dividends Per Share ......................................................................................................................... 11
Dividends Payout Ratio .................................................................................................................... 11
Plowback Ratio.................................................................................................................................. 11
Apple Inc.
An American Multinational Technology Company. The Company designs, develops and sells Consumer
Electronics, Software and Online Services.

The Company's Hardware Products include the iPhone (smartphone), the iPad (Tablet computer),
the Mac (Personal Computer), the iPod (Portable Media Player), the Apple Watch (Smartwatch),
the Apple TV (Digital Media Player).

A portfolio of Consumer and Professional Software Applications include:

MacOS, iOS, iPadOS, WatchOS and TvOS operating systems and professional applications Final Cut
Pro, Logic Pro, and Xcode.

Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Music, Apple
TV+, iMessage, and iCloud.

All of the Company’s hardware products are currently manufactured by outsourcing partners that are
located primarily in Asia, with some Mac computers manufactured in the U.S. and Ireland. A significant
concentration of this manufacturing is currently performed by a small number of outsourcing partners,
often in single locations. Certain of these outsourcing partners are the sole sourced suppliers of
components and manufacturers for many of the Company’s products.
 Financial Statements

Apple Inc.
Consolidated Statements of Operations Vertical Analysis Horizontal Analysis
(Amount In Millions) Relative
Years Ended Years Ended Years Ended
Change
Sep. 30, 2017 Sep. 24, 2016 Sep. 30, 2017 Sep. 24, 2016 Sep. 30, 2017 Sep. 24, 2016
Net sales $ 229,234 $ 215,639 100% 100% 106.30% 100% 6.30%
Cost of sales (141,048) (131,376) 62% 61% 107.36% 100% 7.36%
Gross margin 88,186 84,263 38% 39% 104.66% 100% 4.66%

Operating Expenses:
Research and development 11,581 10,045 5% 5% 115.29% 100% 15.29%
Selling, general and administrative 15,261 14,194 7% 7% 107.52% 100% 7.52%
Total Operating Expenses (26,842) (24,239) 12% 11% 110.74% 100% 10.74%

Operating income 61,344 60,024 27% 28% 102.20% 100% 2.20%

Other income (expense), net 2,745 1,348 1% 1% 203.64% 100% 103.64%
Income before provision for income taxes 64,089 61,372 28% 28% 104.43% 100% 4.43%
Provision for income taxes (15,738) (15,685) 7% 7% 100.34% 100% 0.34%
Net income $ 48,351 $ 45,687 21% 21% 105.83% 100% 5.83%

Apple Inc.
Consolidated Statements of Operations
(Amount In Millions) Pro Forma Income Statement
Years Ended Years Ended
Sep. 30, 2017 Sep. 24, 2016 Sep. 2020 Sep. 2019 Sep. 2018 Assumptions
Net sales $ 229,234 $ 215,639 $ 275,381 $ 259,049 $ 243,686 6.30% increase in Sales
Cost of sales (141,048) (131,376) (169,359) (159,315) (149,867) 61.5% of Sales
Gross margin 88,186 84,263 106,022 99,734 93,819 Sales - CGS

Operating Expenses:
Research and development 11,581 10,045 13,769 12,952 12,184 5% of Sales
Selling, general and administrative 15,261 14,194 19,277 18,133 17,058 7% of Sales
Total Operating Expenses (26,842) (24,239) (33,046) (31,086) (29,242) Total Operating exp.

Operating income 61,344 60,024 72,976 68,648 64,577 Gross Profit - Expenses
Other income (expense), net 2,745 1,348 23,179 11,383 5,590 Increase by 103%
Income before provision for income taxes 64,089 61,372 96,155 80,031 70,167 EBT
Provision for income taxes (15,738) (15,685) (24,039) (20,008) (17,542) 25% of EBT
Net income $ 48,351 $ 45,687 72,116 60,023 52,625 EBT - Taxes / 21% of Sales
 Apple Inc.
Consolidated Balance Sheet Vertical Analysis Horizontal Analysis
(Amount in Millions) Relative
Years Ended Years Ended Years Ended
Change
Assets Sept. 30, 2017 Sept. 24, 2016 Sep. 30, 2017 Sep. 24, 2016 Sep. 30, 2017 Sep. 24, 2016
Cash and cash equivalents $ 20,289 $ 20,484 5% 6% 99.05% 100% -0.95%
Short-term marketable securities 53,892 46,671 14% 15% 115.47% 100% 15.47%
Accounts receivable, net 17,874 15,754 5% 5% 113.46% 100% 13.46%
Inventories 4,855 2,132 1% 1% 227.72% 100% 127.72%
Vendor non-trade receivables 17,799 13,545 5% 4% 131.41% 100% 31.41%
Other current assets 13,936 8,283 4% 3% 168.25% 100% 68.25%
Total Current assets 128,645 108,869 34% 34% 118.16% 100% 18.16%

Long-term marketable securities 194,714 170,430 52% 53% 114.25% 100% 14.25%
Property, plant and equipment, net 33,783 27,010 9% 8% 125.08% 100% 25.08%
Goodwill 5,717 5,414 2% 2% 105.60% 100% 5.60%
Acquired Intangible Assets, net 2,298 3,206 1% 1% 71.68% 100% -28.32%
Other non-current assets 10,162 8,757 3% 3% 116.04% 100% 16.04%
Total Assets $ 375,319 $ 321,686 100% 100% 116.67% 100% 16.67%

Liabilities and Shareholders' Equity

Curren Liabilities
Accounts payable $ 49,049 $ 37,294 13% 12% 131.52% 100% 31.52%
Accrued expenses 25,744 22,027 7% 7% 116.87% 100% 16.87%
Deferred revenue 7,548 8,080 2% 3% 93.42% 100% -6.58%
Commercial paper 11,977 8,105 3% 3% 147.77% 100% 47.77%
Current portion of term debt 6,496 3,500 2% 1% 185.60% 100% 85.60%
Total Current liabilities 100,814 79,006 27% 25% 127.60% 100% 27.60%

Deferred revenue Non-current 2,836 2,930 1% 1% 96.79% 100% -3.21%

Long-term debt 97,207 75,427 26% 23% 128.88% 100% 28.88%
Other non-current liabilities 40,415 36,074 11% 11% 112.03% 100% 12.03%
Total liabilities 241,272 193,437 64% 60% 124.73% 100% 24.73%

Shareholders’ equity
Common stock and additional paid-in capital,
$0.00001 par value 35,867 31,251 10% 10% 114.77% 100% 14.77%
Retained earnings 98,330 96,364 26% 30% 102.04% 100% 2.04%
Accumulated other comprehensive income (loss) (150) 634 0.04% 0.20% -23.66% 100% -123.66%
Total Shareholders’ equity 134,047 128,249 36% 40% 104.52% 100% 4.52%
Total liabilities and shareholders’ equity $ 375,319 $ 321,686 100% 100% 116.67% 100% 16.67%
 Apple Inc.
Consolidated Balance Sheet
(Amount in Millions) Pro Forma Balance Sheet
Years Ended Years Ended
Assets Sept. 30, 2017 Sept. 24, 2016 Sep. 2020 Sep. 2019 Sep. 2018
Cash and cash equivalents $ 20,289 $ 20,484 $ 19,715 $ 19,905 $ 20,096 Assumptions
Short-term marketable securities 53,892 46,671 86,432 74,081 63,495 All Assets are calculated as a
Accounts receivable, net 17,874 15,754 29,804 25,545 21,895 percentage of Total Assets,
Inventories 4,855 2,132 8,941 7,664 6,568 Except Cash which is
Vendor non-trade receivables 17,799 13,545 29,804 25,545 21,895 calculated as 0.95% decrase
Other current assets 13,936 8,283 23,843 20,436 17,516 in following years.
Total Current assets 128,645 108,869 198,540 173,175 151,464

Long-term marketable securities 194,714 170,430 315,805 268,734 226,199

Property, plant and equipment, net 33,783 27,010 56,146 45,987 39,410
Goodwill 5,717 5,414 6,861 6,498 6,037
Acquired Intangible Assets, net 2,298 3,206 846 1,181 1,647
Other non-current assets 10,162 8,757 17,882 15,327 13,137
Total Assets $ 375,319 $ 321,686 596,082 510,902 437,894 16% Increase in Total Assets

Liabilities and Shareholders' Equity

Curren Liabilities
Accounts payable $ 49,049 $ 37,294 77,491 66,417 56,926
Accrued expenses 25,744 22,027 41,726 35,763 30,653
Deferred revenue 7,548 8,080 11,922 10,218 8,758
Commercial paper 11,977 8,105 17,882 15,327 13,137
Current portion of term debt 6,496 3,500 11,922 10,218 8,758
Total Current liabilities 100,814 79,006 160,942 137,943 118,231

Deferred revenue Non-current 2,836 2,930 5,961 5,109 4,379

Long-term debt 97,207 75,427 154,981 132,834 113,852 Total Liabilities: calculated
Other non-current liabilities 40,415 36,074 65,569 56,199 48,168 through Debt to Assets and Debt
to Equity Ratios.
Total liabilities 241,272 193,437 387,453 332,086 284,631

Shareholders’ equity
Common stock and additional paid-in capital,
$0.00001 par value 35,867 31,251 54,224 47,245 41,165 Calculated as 10% increase in each y
Retained earnings 98,330 96,364 154,981 132,834 113,852 26% of Total Assets as per policy
Accumulated other comprehensive income (loss) (150) 634 (576) (1,264) (1,754)
Total Shareholders’ equity 134,047 128,249 208,629 178,816 153,263 Total Equity Calculated through Debt
Total liabilities and shareholders’ equity $ 375,319 $ 321,686 596,082 510,902 437,894 Equity and Financial Leverage Ratio
 Apple Inc.
Consolidated Statement of Cash Flows Vertical Analysis Horizontal Analysis
(Amount in Millions)
years Ended Years Ended Years Ended
Change
Sept. 30, 2017 Sept. 24, 2016 Sep. 30, 2017 Sep. 24, 2016 Sep. 30, 2017 Sep. 24, 2016
Cash and Cash equivalents, bigining of the year $ 20,484 $ 21,120 8.94% 9.79% 96.99% 100% -3.01%
Net income 48,351 45,687 21.09% 21.19% 105.83% 100% 5.83%
Depreciation and amortization 10,157 10,505 4.43% 4.87% 96.69% 100% -3.31%
Share-based compensation expense 4,840 4,210 2.11% 1.95% 114.96% 100% 14.96%
Deferred income tax expense (benefit) 5,966 4,938 2.60% 2.29% 120.82% 100% 20.82%
Other (166) 486 -0.07% 0.23% -34.16% 100% -134.16%
Changes in operating assets and liabilities
Accounts receivable, net (2,093) 527 -0.91% 0.24% -397.15% 100% -497.15%
Inventories (2,723) 217 -1.19% 0.10% -1254.84% 100% -1354.84%
Vendor non-trade receivables (4,254) (51) -1.86% -0.02% 8341.18% 100% 8241.18%
Other current and non-current assets (5,318) 1,055 -2.32% 0.49% -504.08% 100% -604.08%
Accounts payable 9,618 1,837 4.20% 0.85% 523.57% 100% 423.57%
Deferred revenue (626) (1,554) -0.27% -0.72% 40.28% 100% -59.72%
Other current and non-current liabilities (154) (2,033) -0.07% -0.94% 7.58% 100% -92.42%
Cash generated by operating activities 63,598 65,824 27.74% 30.53% 96.62% 100% -3.38%

Investing Activities
Purchases of marketable securities (159,486) (142,428) -69.57% -66.05% 111.98% 100% 11.98%
Proceeds from maturities of marketable securities 31,775 21,258 13.86% 9.86% 149.47% 100% 49.47%
Proceeds from sales of marketable securities 94,564 90,536 41.25% 41.98% 104.45% 100% 4.45%
Payments for acquisition of property, plant and equipment (12,451) (12,734) -5.43% -5.91% 97.78% 100% -2.22%
Payments made in connection with business acquisitions, (329) (297) -0.14% -0.14% 110.77% 100% 10.77%
Payments for acquisition of intangible assets (344) (814) -0.15% -0.38% 42.26% 100% -57.74%
Payments for strategic investment, net (395) (1,388) -0.17% -0.64% 28.46% 100% -71.54%
Other 220 (110) 0.10% -0.05% -200.00% 100% -300.00%
Cash used in Investing activities (46,446) (45,977) -20.26% -21.32% 101.02% 100% 1.02%

Financing Activities
Proceeds from issuance of common stock 555 495 0.24% 0.23% 112.12% 100% 12.12%
Excess tax benefits from equity awards 627 407 0.27% 0.19% 154.05% 100% 54.05%
Payments for taxes related to net share settlement of
equity awards (1,874) (1,570) -0.82% -0.73% 119.36% 100% 19.36%
Payments for dividends and dividend equivalents (12,769) (12,150) -5.57% -5.63% 105.09% 100% 5.09%
Repurchases of common stock (32,900) (29,722) -14.35% -13.78% 110.69% 100% 10.69%
Proceeds from issuance of long-term debt, net 28,662 24,954 12.50% 11.57% 114.86% 100% 14.86%
Repayments of term debt (3,500) (2,500) -1.53% -1.16% 140.00% 100% 40.00%
Change in commercial paper, net 3,852 (397) 1.68% -0.18% -970.28% 100% -1070.28%
Cash used in financing activities (17,347) (20,484) -7.57% -9.50% 84.69% 100% -15.31%
Increase (decrease) in cash and cash equivalents (195) (636) -0.09% -0.29% 30.66% 100% -69.34%
Cash and cash equivalents, end of the year $ 20,289 $ 20,484 8.85% 9.50% 99.05% 100% -0.95%
 Activity Ratios 2017 Total Avg.
Cost of sales 141,048
Inventory Turnover = Cost of Goods Sold/Avg. Invent. 40.37441
Inventories 4,855 2,132 6,987 3,493.50
Total Revenue / Sales 229,234.00
Receivable Turnover = Total Rev./Avg.Rec. 13.63352
Accounts receivable, net 17,874 15,754 33,628 16,814
Net sales 229,234.00
Total Asset Turn. = Total Rev./Avg.Total Assets 0.6577686
Total Assets 375,319.00 321,686.00 697,005.00 348,502.50
Total Revenue / Sales 229,234.00
Working Capital Turn. = Total Revenue/Avg. work. Cap 7.95
Working Capital 27831 29863 57694 28847

Operating Cycle Formulas 2017

Purchases = Cost of goods sold + Ending Invent.- Beginning Invent. 143,771
No. of Days of Inventory = 365/ Inventory Turn. 9.0403799
No. of Days of Receivables = 365/ Receivable Turn. 26.77225 Accounts Payable Turnover = Purchases / Avg. Pay 2.12377393
No. of Days of Payables = 365/Payable Turn. 171.86387

Operating Cycle = No. of days of Inv. + No. of days of Rec. Net Operating Cycle = No. of days of Inv. + No. of days of Rec. - No. of days of pay.
35.81263006 -136.0512368

Liquity Ratios 2017 2016

Current Ratio = Current Assets / Current Liabilities 1.276 1.3780 Cash and cash equivalents 20,289 20,484
Short-term marketable securities 53,892 46,671
Quick Ratio = Cash + Short-Term Investment s+ Receivables / Current Liabilities 1.09 1.22 74,181 67,155
Vendor non-trade receivables 17,799 13,545
Cash Ratio = Cash + Short-Term Investments / Current Liabilities 0.74 0.85 Accounts receivable, net 17,874 15,754
Total 109,854 96,454

Solvency Ratios (Component percentage) 2017 2016

Debt-to-Assets Ratio = Total Debt / Total Assets 0.276 0.245

Long-Term Debt-to-Assets Ratio = Long-Term Debt / Total Assets 0.259 0.234

Debt-to-Equity Ratio = Totabl Debt / Total Shareholders' Equity 0.774 0.615

Financial Leverage = Total Assets / Total Shareholders' Equity 2.800 2.508

Coverage Ratios 2017 2016

Interest Coverage Ratio = EBIT / Interest payments 28.589 43.151

2017 2016
Fixed Change Coverage Ratio = EBIT + Lease Payments / Int. Pay + Lease Payments 7.675 8.697
EBIT 66412 62828
Interest Payment 2323 1456
Cash Flow Coverage Ratio = CFO + Int.Pay + Tax Pay / Interest Payments 35.152 56.981
Tax Payment 15738 15685
Lease Payment 7279 6517
Cash Flow-to-Debt Ratio = CFO / Total Debt 0.264 0.340 Cash generated by operating
activities 63,598 65,824
 Profitability Ratios (Margins) 2017 2016
Gross Profit Margin = Gross Profit/Total Revenue 0.385 0.391

Operating Profit Margin = Operating profit / Total Revenue 0.290 0.291

Net Profit Margin = Net Profit / Total Revenue 0.211 0.212

Pretax Profit Margin = Earnings Befire Taxes 0.280 0.285

Returns 2017
Operating Return on Assets = Operating Income / Average Total Assets 0.191

Return on Assets = Net Income / Average Total Assets 0.139

Return on Total Capital = Net Income / Average Interest Bearing Debt+Avg. Assets 0.110

Return on Equity = Net Income / Average Shareholders' Equity 0.369

Thre Factor Dupont for Return On Equty (ROE) 2017 2016

Return On Equity 0.36070 0.35624

Total Asset Turnover 0.61077 0.67034

Financial Leverage 2.79991 2.50829
Net Profit Margin 0.21092 0.21187

Other Ratios 2017 2016

Earnings Per Share 9.23908 8.37706
2017 2016 2015
Book Value Per Share 26.10807 24.05129
No. of Common
Price-to-Earnings Ratio 18.67069 13.7984 5134.312 5332.313 5575.331
Dividends Per Share 2.43995 2.22780
Shares Outstanding
Dividends Payout Ratio 0.264089 0.26594 Share Price 172.5 115.59
Plowback Ratio 0.735911 0.73406
 Interpretation of Common-size Analysis
Cash and cash equivalents
A decrease in Cash and Cash equivalents mainly due to purchase of Marketable Securities, Repurchase of
Common Stock and other investing Activities. Cash and Cash equivalents has decreased to 5% from 6% to
total assets in 2017, and decreased 1 percent relative to cash and cash equivalents in 2016.

Short-term marketable securities

Significantly (15%) increased relative to investment in marketable securities in 2016. Currently 14 percent
of total assets.

Other Current Assets

There is also increase in Accounts Receivable, Vendor Non-trade receivables and a dramatic increase
(128%) in Inventories relative to 2016. However, they increased slightly as a percentages of Total Assets
in 2017. Other Current Assets increased to 4% from 3% of total assets in 2017.

Total Current Assets

Total current assets increased 68% in 2017 relative to 2016, but remained same, 34% of total assets.

Non-Current Assets
Long term marketable, property plant and equipment and other non-current assets almost remained at same
percentages of Total Assets as were in 2016, and overall, they are 64 percent of total assets in 2017 as were
in 2016 as well. But increased 16.4% relative to Non-current assets in 2016.

Current Liabilities
Accounts Payable, Accrued expenses, Deferred revenue and current portion of long term debt has
increased 2% as a percentage to total assets in 2017. And is 128 percent of Current liabilities of 2016.

Total Liabilities
Current liabilities and Non-current Liabilities; Deferred revenue Non-current and Long term debt has
increased due to which total liabilities increased to 64% of total assets in 2017 from 60% in 2016.

Shareholders’ Equity
Shareholders’ equity decreased to 36% of total assets in 2017 from 40% in 2016, mainly due to
Repurchase of Common stock and $195 million loss in other comprehensive income.

Net Sales, Cost of Sales and Gross margin

Net Sales Increased by 6.3% in 2017 along with a 7% increase in Cost of Sales relative to year 2016, due
to which Gross margin falls to 38% from 39% of Net Sales.
Net profit and Operating Expenses
Operating expenses increased to 12% from 11% in 2017, while Net Profit remained same as 21%t of Net
Sales due to increase in cost of sales and operating expenses.
Research and Development expenses, Selling, general and administrative expenses remained at same
5% and 7% respectively of Net Sales as were in 2016 also.
Provision for Income taxes also remained same 25% of Income before provision for income
taxes/EBT.

The Company has to thoroughly and carefully focuse on It’s Operating, Investing and Financing
activities, Has improved Investing Activities in 2017 relative to 2016. But has to improve it’s
Operating and Financing activities.
Simply It shows a high Cash outflows relative to Cash Inflows.

Interpretation of Ratios
Activity Ratios
The Company has a brilliant Activity Ratios.
It’s Inventory Turnover Ratio is 40.37 and No. of Days of Inventory is 9 Days. It indicates that the
company sell out all of it’s inventory almost 40 times a year or after every 9 days.
It’s Receivable Turnover Ratio is 13.6 and No. of Days of Receivable is 26.77 Days. Which indicates
that Company Receive all of It’s Credit Sales in Cash almost 14 times a year or after every 27 Days.
The Company Asset turnover is 0.6577 or we can say It generates 65.77% Revenue on Its Total Asset
employed, while the Company Working Capital Turnover is 7.95 which again shows a positive sign of
Company’s effectiveness.

The Company’s Operating Cycle completes in almost 36 Days, Or 10 times a year, which means
that the company Sell all of It’s Inventory and Receive all of It’s Receivables in Cash after every 36
Days or 10 times a year.

Liquidity Ratios
The Current Ratio (1.3780), Quick Ratio (1.22) and Cash Ratio (0.85) of the Company in 2017 has fallen
to (1.276), (1.09) and (0.74) Respectively.

Solvency Ratios
Component Percentage
The Debt to Assets, Long-Term Debt to Assets, Debt to Equity and Financial Leverage Ratios in 2017
shows an increase in these Ratios relative to 2016.

Coverage Ratios
The Coverage Ratios in 2017 shows a fall in Interest Coverage Ratio, Fixed Change Coverage Ratio and
Cash Flow to Debt Ratio relative to 2016.
The Liquidity and Solvency Ratios in 2017 do not show a positive sign of the efficiency and
performance of the company compared to 2016.
Profitability Ratios
Margins
The profitability margin Ratios also do not show a good sign of the performance of the company in 2017
relative to 2016 The Gross profit margin, Operating profit margin, Net profit margin and pretax margin
Ratios has steadily fallen in 2017 compared with 2016.

Returns
The operating Return on Assets, Return on Assets, Return on Total Capital and Return on Equity Ratios
are: 0.191, 0.139, 0.110 and 0.369 respectively in 2017.

Three Factor DuPont for the Return on Equity

Return on Equity has increased to 36.070% in 2017 from 35.624% in 2016. Which is mainly due to
increase in Financial Leverage to 2.79991 in 2017 from 2.50829 in 2016, while Total Asset turnover and
Net Profit Margin Ratios are even greater in 2016 except Financial Leverage Ratio compared with 2017.

Other Ratios
Earnings Per Share has increased to $9.239 in 2017 from $8.377 in 2016, calculated as Net Income
divided by Average Common Shares Outstanding.

Book Value Per Share Has increased to $26 in 2017 from $24 in 2016, calculated as Net Assets
(Shareholders’ Equity) divided by Common Shares Outstanding for the year as the company has not
issued any other type of Shares. Book Value calculation depends on Company policy, Sometimes, It can
be Face value of Share or as decided by the company and recorded in financial accounts.

Price-to-Earnings Ratio Has increased from $13.7 to $18.6 in 2017.

Dividends Per Share Has increased to $2.4 from $2.2 in 2017.
Dividends Payout Ratio Has slightly decreased from 0.265 to 0.264 in 2017, calculated as Dividends
paid divided by Net Income for the year.

Plowback Ratio also known as Retention Ratio slightly increased from 0.734 to 0.735 in 2017, which
is because of a slight decrease in Dividends Payout Ratio in 2017. Calculated as 1– Dividends Payout
Ratio or Net Income – Dividends Paid divided by Net Income for the year.