Dynamic firm profitability analysis

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1. Calculate some key profitability, activity, leverage, liquidity, and market ratios for Apple and BlackBerry over time.

2. Conduct a dynamic firm profitability analysis over time (fiscal years 2008–2012) as shown in Exhibit 5.1. Can you find signs of performance differentials between these two firms that may have indicated problems at BlackBerry? When did BlackBerry’s performance problems become apparent?

3. Make a recommendation to Thorsten Heins, the CEO of BlackBerry, about actions he could take to improve firm performance. Key Financial Data for Apple and BlackBerry (fiscal years 2010–2012)

There's a more organized version of the table below in the text: Strategic Management Rothaermel 2e on pages 152-154:

In millions of US$ (except for per share items):

         Apple Y/E Sep. 2012    Apple Sep 2011    Apple Sep. 2010    Blkbrry Mar. 2013    Blkbrry Mar. 2012     Blkbrry Mar. 2011

Total rev.         156,508                 108,249                   65,225                        11,073                    18,423                    19,907

Cost of rev., total 87,846                64,431                    39,541                         7,639                    11,848                     11,082

Gross profit        68,662                  43,818                    25,684                         3,434                     6,575                        8,825

Selling/gen./admin 10,040                7,599                      5,517                         2,111                      2,600                       2,400

Total operating exp 13,421             10,028                      7,299                         4,669                      5,078                       4,189

Operating income    55,241             33,790                    18,385                       -1,235                      1,497                       4,636

Income before tax 55,763               34,205                     18,540                       -1,220                     1,518                        4,644

Income after tax    41,342               25,607                     13,896                               0                     1,429                        3,405

Net income             41,733             25,922                     14,013                           -646                     1,164                       3,411

Diluted weighted avg shrs 945            937                          925                            524                        524                           538

Dividends per shr com. Stk   3                0                              0                                0                            0                               0

Diluted normalized EPS       44             28                            15                               -1                            2                               6

Cash and equivalents 10,746           9,815                    11,261                          1,549                      1,527                       1,791

Short-term investments 18,383      16,137                    14,359                          1,105                         247                          330

Cash & shrt-term invst  29,129       25,952                    25,620                          2,654                      1,774                      2,121

Accounts revble, trade net 10,930   5,369                       5,510                          2,353                      3,062                      3,955

Total receivables, net      18,69      11,717                       9,924                          2,625                      3,558                      4,279

Total inventory                    791          776                        1,051                             603                      1,027                         618

Total current assets       57,653     44,988                      41,678                          7,101                      7,071                      7,488

Prop./plant/eqpmt, ttl-nt 15,452       7,777                        4,768                          2,395                      2,733                      2,504

Accum depr., ttl Gdwill, net 1,135       896                          741                                 0                         304                          508

Intangibles, net                4,224       3,536                           342                          3,448                      3,286                       1,798

Long-term investments  92,122     55,618                      25,391                             221                         337                          577

Other long-term assets, ttl 5,478     3,556                        2,263

Total assets               176,064     116,371                       75,183                       13,165                   13,731                      12,875

Accounts payable        21,175       14,632                       12,015                         1,064                        744                           832

Accrued expenses       11,414         9,247                         5,723                         1,842                     2,382                        2,511

Other current liabilities, ttl 5,953      4,091                         2,984                            542                        263                           108

Total current liabilities    38,542   27,970                         20,722                         3,448                      3,389                       3,630

Total long-term debt               0            0                                   0                                0                             0                               0

Total debt                               0            0                                   0                                0                             0                               0

Other liabilities, total      22,617   14,191                            8,515                            542                         263                           108

Total liabilities                57,854   39,756                          27,392                         3,705                      3,631                        3,937

ommon stock, total            667          381                            283                               13                             14                          66

Additional paid-in capital    0               0                                  0                                 0                               0                            0

Retnd enings (accum def) 101,289   62,841                  37,169                          7,267                        7,913                     6,749

Total equity                     118,210     76,615                   47,791                          9,460                      10,100                     8,938

Total liabi.& shrhldrs’ eqty 176,064  116,371                  75,183                        13,165                     13,731                    12,875

Total common shrs otstnding   939      929                          916                          2,431                       2,446                      2,359

                                                                                        

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