Apple Inc.reported revenues of 234 billion USD and net income of 53 billion USD in 2015.These figures represent a stunning annual growth in revenue and net income of 28 percent and 33 percent,respectively,for 2014.This information indicates the importance of using ________ to evaluate company financial performance.
A) financial ratios
B) industry norms
C) historical comparisons
D) competitor analysis

Question

Quizplus · Accepted Answer

When evaluating company financial performance, it is very useful to compare its financial position over time. This provides a means of evaluating trends. For example, Apple Inc. reported revenues of 234 billion USD and net income of 53 billion USD in 2015. These figures represent a stunning annual growth in revenue and net income of 28 percent and 33 percent, respectively, for 2014. Had Apple's revenues and net income in 2015 been 150 billion USD and 30 billion USD, respectively, it would still be a very large and highly profitable enterprise. However, such performance would have significantly damaged the Apple market valuation and reputation as well as the careers of many of its executives.

Apple Increported Revenues of 234 Billion USD and Net Income of of 53