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Value & Performance Measurement. The followings are Home Depot B/S of the recent two years and I/S at fiscal year end, Feb 1, 2015. ($, in million) Calculate the Value and Performance Measures. Balance Sheet, Assets 2015 2014 Liabilities & Shareholder's Equity 2015 2014 Income Statement, for the fiscal year ended 2015 Current Assets Current Liabilities Net Sales 83,176 Cash and Marketable Securities 1,723 1,929 Debt due for repayment 328 33 Other Income 337 Receivables 1,484 1,398 Accounts payable 9,473 9,379 Less Cost of Goods Sold 54,222 Inventories 11,079 11,057 Other current liabilities 1,468 1,337 = Gross Profit 29,291 Other current assets 1,016 895 Total current liabilities 11,269 10,749 Less Selling, General, Admin Exp 16,699 Total Current Assets 15,302 15,279 = EBITDA 12,592 Long-term debt 16,869 14,691 Less Depreciation & Amortization 1,786 Fixed Assets Deferred income taxes 642 514 = EBIT 10,806 Tangiable Fixed Assets Other long-term liabilities 1,844 2,042 Less Interest Expense 830 Property, Plant, and Equipment 40,353 39,064 Total Iiabilities 30,624 27,996 = EBT 9,976 Less Accumulated Depreciation 17,633 15,716 Less Tax 3,631 Net Tangible Fixed Assets 22,720 23,348 Shareholders' Equity Net Income 6,345 Intangible Assets including Goodwill 1,353 1,289 Common Stock and Paid in Capital 8,521 8,536 Other Assets 571 602 Retained Earnings 26,995 23,180 Treasury Stock (26,194) 19,194 Total Shareholders' Equity 9,322 12,522 Total Assets 39,946 40,518 Total Liaibitlies & Shareholders' Equilty 39,946 40,518 Home Depot Financial Information. (Feb 1st, 2015) Price per share ($)* 114.75 Shares outstanding (# in million)** 1,307 Interest Expense on the I/S ($ in million)*** 830 Weighted Average Cost of Capital (%, Given) 9% Cost of Equity (%, Given) 12% Tax Rate (%, Given) 35% Market Capitalization (Market Value, $ in million) 149,978.25 =C26*C27 Market Value Added (MVA, $ in million) 140,656.25 =C34-G22 Market to Book ratio 16.09 =C34/G22 Price to Eanrings ratio 23.64 =C34/K18 Performance Measurement. (For the year ended of the fiscal Year 2015) Economic Value Added (EVA, $ in million) 4,435.33 =(C28*(1-C31)+K18)-(C29*(H13+H22)) Residual Income (RI, $ in million) 5,226.36 =K18-(C30*G22) Return on Capital (ROC, %) 25.30% =(C28*(1-C31)+K18)/(H13+H22) Return on Asset (ROA, %) 16.99% =(C28*(1-C31)+K18)/D23 Return on Equity (ROE, %) 50.67% =K18/H22 Value Measurement. (as of NOW, Feb 1st, 2015) Value Measurement. Market Capitalization: Total market value of equity = # of shares outstanding × stock price per share Market Value Added (MVA): Market Value exceeding Book Value of equity = Market Value of Equity(Market capitalization) - Book Value of Equity Market-to-Book Ratio: Ratio of market value of equity to book value of equity "=" "Market Value of equity " / "Book Value of equity " *Price-to-Earnings Ratio: Ratio of Market Value of Equity to Earnings Performance Measurement. Economic Value Added (EVA) = Income for all investors - A charge for cost of capital = [Net Operating Profit After Tax] - [Opportunity cost of capital × Total Capital employed prior year] = [Interest expense x (1 - tax rate) + Net Income] - [WACC x (prior year Long-term debt + prior year Equity)] Residual Income (considering only equity capital) = Net Income - (Cost of Equity × Equity) 100% Equity Financing? EVA = Residual Income = Net Operating Profit After Tax - (Cost of capital × Total capital) = Net Income - (Cost of Equity × Equity capital) Accounting Performance Ratio "Return on capital = " "Net Operating Profit After Tax " / "total capital " " " "Return on assets = " "Net Operating Profit After Tax " / "total assets " " " "Return on equity = " "net income " / "equity "

Financial Statement Analysis. Apple Inc. | 2022 Form 10-K | (In millions, except number of shares which are reflected in thousands and per share amounts) Part I. Financial Statement Analysis Part II. Financial Ratio Analysis Income Statement Analysis Vertical Aanlysis Horizontal Analysis CONSOLIDATED STATEMENTS OF OPERATIONS 2022 (%) 2021 (%) Changes ($) Changes (%) 1. Liquidity (Safety) 2022 2021 Net sales: Current ratio Products $ 316,199 $ 297,392 Quick ratio Services 78,129 68,425 Accounts Receivable Turnover Total net sales 394,328 365,817 Days in Receivable Cost of sales: Products 201,471 192,266 2022 2021 Services 22,075 20,715 Inventory Turnover Total cost of sales 223,546 212,981 Days in Inventory Gross margin 170,782 152,836 Total Asset Turnover Total Fixed Asset Turnover Operating expenses: Research and development 26,251 21,914 Selling, general and administrative 25,094 21,973 3. Profitability 2022 2021 Insolvency Ratios \ Ratings Aaa Aa A Baa Ba B C Total operating expenses 51,345 43,887 Operating profit margin (%) EBITA/Assets (%) 12.30% 10.20% 10.80% 8.70% 8.50% 6.70% 4.10% Return on Asset (%) Operating profit margin (%) 25.40% 17.40% 14.90% 12.00% 11.50% 9.00% 4.60% Operating income 119,437 108,949 Return on Sales, net profit margin (%) EBITA to interest coverage (multiple) 11.5 13.9 10.7 6.3 3.7 1.9 0.7 Other income/(expense), net (334) 258 Return on Equity (%) Debt/EBITDA (multiple) 1.9 1.8 2.3 2.9 3.7 5.2 8.1 Income before provision for income taxes 119,103 109,207 Debt/(Debt + Equity) (%) 35.10% 31.00% 40.70% 46.40% 55.70% 65.80% 89.30% Provision for income taxes 19,300 14,527 Funds from operations/Total debt (%) 45.50% 43.40% 34.10% 27.10% 19.90% 11.70% 4.60% Net income $ 99,803 $ 94,680 4. Insolvency (leverage) 2022 2021 Retained Cash Flow/Net Debt (%) 31.40% 30.10% 27.30% 25.30% 19.70% 11.50% 5.10% Debt ratio Balance Sheet Analysis Vertical Aanlysis Horizontal Analysis Debt to Equity ratio CONSOLIDATED BALANCE SHEETS 2022 (%) 2021 (%) Changes ($) Changes (%) Asset to Equity (Equity Multiplier) ASSETS: Times Interest earned Current assets: Cash and cash equivalents $ 23,646 $ 34,940 Marketable securities 24,658 27,699 5. DuPont Analysis. (ROE break-down) 2022 2021 Accounts receivable, net 28,184 26,278 Return on Sales, net profit margin (%) Inventories 4,946 6,580 Asset Turnover Vendor non-trade receivables 32,748 25,228 Asset to Equity Other current assets 21,223 14,111 Return on Equity (%) Total current assets 135,405 134,836 Non-current assets: Marketable securities 120,805 127,877 Property, plant and equipment, net 42,117 39,440 Other non-current assets 54,428 48,849 Total non-current assets 217,350 216,166 Total assets $ 352,755 $ 351,002 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable $ 64,115 $ 54,763 Other current liabilities 60,845 47,493 Deferred revenue 7,912 7,612 Commercial paper 9,982 6,000 Term debt 11,128 9,613 Total current liabilities 153,982 125,481 Non-current liabilities: Term debt 98,959 109,106 Other non-current liabilities 49,142 53,325 Total non-current liabilities 148,101 162,431 Total liabilities 302,083 287,912 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,943,425 and 16,426,786 shares issued and outstanding, respectively 64,849 57,365 Retained earnings/(Accumulated deficit) (3,068) 5,562 Accumulated other comprehensive income/(loss) (11,109) 163 Total shareholders' equity 50,672 63,090 Total liabilities and shareholders' equity $ 352,755 $ 351,002 Cash Flow Statment Analysis Activity Analysis in Operating, Investing, & Financing for Cash account on the B/S CONSOLIDATED STATEMENTS OF CASH FLOWS 2022 2021 Not required to do Vertical / Horizontal analysis Cash, cash equivalents and restricted cash, beginning 2. Productivity (Efficiency) 1. Liquidity (Safety) Current ratio: The ability to pay short-term liability = current assets / current liabilities Acid-test (quick) ratio: The ability to pay short-term liability in stress = (cash + ST Investment + AR) / current liabilities Accounts Receivable Turnover (for a year): How many times AR are turned over to make sales = (credit) sales / accounts receivable Days in Receivable: How long days it takes to collect the cash from AR = 365 / accounts receivable turnover 2. Productivity (Efficiency) Inventory Turnover (for a year): How many times the inventory is sold = Cost of Goods Sold / Inventory Days in Inventory: How long days the inventory is hold before sold = 365 / Inventory Turnover Total Asset Turnover (for a year): How efficiently the asset generates sales = Sales / total assets Total Fixed Asset Turnover: How efficiently the fixed asset generates sales = Sales / net fixed asset 3. Profitability Operating profit margin (%): Operating profit from sales = Operating income / sales Return on Asset (%): Net Income generated from the Assets = Net income / assets Return on Sales (net profit margin, %): Net income from sales = Net income / sales Return on Equity (%): Net income generated from the Equity = Net income / Equity 4. Insolvency (leverage) Debt Ratio: Liabilities weight to total assets (Leverage) = Total Liabilities / Assets Debt to Equity Ratio: The ratio liabilities : equity (Capital structure) = Total Liabilities / Equity Equity Multiplier: The ratio Asset to equity (leverage) = Total Assets / Equity Times Interest earned : operating profit available for interest payments = Operating income / Interest expense 5. DuPont Analysis. (ROE break-down)

balances $ 35,929 $ 39,789 Operating activities: Net income 99,803 94,680 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 11,104 11,284 Share-based compensation expense 9,038 7,906 Deferred income tax expense/(benefit) 895 (4,774) Other 111 (147) Changes in operating assets and liabilities: Accounts receivable, net (1,823) (10,125) Inventories 1,484 (2,642) Vendor non-trade receivables (7,520) (3,903) Other current and non-current assets (6,499) (8,042) Accounts payable 9,448 12,326 Deferred revenue 478 1,676 Other current and non-current liabilities 5,632 5,799 Cash generated by operating activities 122,151 104,038 Investing activities: Purchases of marketable securities (76,923) (109,558) Proceeds from maturities of marketable securities 29,917 59,023 Proceeds from sales of marketable securities 37,446 47,460 Payments for acquisition of property, plant and equipmen (10,708) (11,085) Payments made in connection with business acquisitions, net (306) (33) Other (1,780) (352) Cash used in investing activities (22,354) (14,545) Financing activities: Payments for taxes related to net share settlement of equity awards (6,223) (6,556) Payments for dividends and dividend equivalents (14,841) (14,467) Repurchases of common stock (89,402) (85,971) Proceeds from issuance of term debt, net 5,465 20,393 Repayments of term debt (9,543) (8,750) Proceeds from/(Repayments of) commercial paper, net 3,955 1,022 Other (160) 976 Cash used in financing activities (110,749) (93,353) Decrease in cash, cash equivalents and restricted cash (10,952) (3,860) Cash, cash equivalents and restricted cash, ending balances $ 24,977 $ 35,929 Supplemental cash flow disclosure: Cash paid for income taxes, net $ 19,573 $ 25,385 Cash paid for interest $ 2,865 $ 2,687 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except per share amounts) Years ended September 26 September 28, 2022 2021 Total shareholders' equity, beginning balances $ 63,090 $ 65,339 Common stock and additional paid-in capital: Beginning balances 57,365 50,779 Common stock issued 1,175 1,105 Common stock withheld related to net share settlement of equity awards (2,971) (2,627) Share-based compensation 9,280 8,108 Ending balances 64,849 57,365 Retained earnings/(Accumulated deficit): Beginning balances 5,562 14,966 Net income 99,803 94,680 Dividends and dividend equivalents declared (14,793) (14,431) Common stock withheld related to net share settlement of equity awards (3,454) (4,151) Common stock repurchased (90,186) (85,502) Cumulative effect of change in accounting principle - - Ending balances (3,068) 5,562 Accumulated other comprehensive income/(loss): Beginning balances 163 (406) Other comprehensive income/(loss) (11,272) 569 Cumulative effect of change in accounting principle - - Ending balances (11,109) 163 Total shareholders' equity, ending balances $ 50,672 $ 63,090 Dividends and dividend equivalents declared per share or RSU $ 0.90 $ 0.85 5. DuPont Analysis. (ROE break-down) Return on Equity (%) = Profitability x Productivity x Leverage(growth) = Return on Sales x Asset Turnover x Asset to Equity = Net Income / Sales x Sales / Assets x Assets / Equity