TSC Ratings' Updates: Apple

The debt-to-equity ratio of 0.83 is somewhat low and is less than that of the industry average, implying a relatively successful effort in the management of debt levels. However, the quick ratio of 0.82 is somewhat weak and could be cause for future problems. Return on equity has decreased from the same quarter one year prior, a clear sign of weakness within the company, underperforming the industry average but outperforming the S&P 500. Net operating cash flow has decreased to -$196.20 million, or 47.74% when compared with the same quarter last year. In addition, the firm's growth rate is much lower than the industry average.

We've downgraded Genworth Financial (GNW Quote) from hold to sell, driven by its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Genworth has experienced a steep decline in earnings per share of 178.94% in the most recent quarter compared with the same quarter a year ago, and EPS have also declined over the last year, a trend we anticipate to continue in the coming year. During the past fiscal year, Genworth reported lower earnings of $2.58 vs. $2.73 in the prior year. For the next year, the market is expecting a contraction of 20.9% in earnings to $2.04 versus $2.58. Net income is down 176.1% over the same quarter last year, to -$258 million, significantly underperforming the S&P 500 and the insurance industry. Return on equity has also decreased, trailing both the industry average and the S&P 500, a signal of major weakness within the company.