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Apple Retained Earnings vs. Current Ratio

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Apple Current Ratio vs. Retained Earnings Fundamental Analysis

Apple is rated third in retained earnings category among related companies. It is rated below average in current ratio category among related companies . The ratio of Retained Earnings to Current Ratio for Apple is about  61,607,518,797 
Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
Apple 
Retained Earnings 
 = 
Beginning RE + Income 
Dividends 
=
94.88 B
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Apple 
Current Ratio 
 = 
Current Asset 
Current Liabilities 
=
1.54 
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).

Apple Current Ratio Comparison

  Current Ratio 
    
  Apple Comparables 
Apple is currently under evaluation in current ratio category among related companies.

Apple Fundamental Comparison