Would Apple Corporation be a good investment? Apple is a well known company, but the decision to invest cannot be made on the popularity of the name. To make a well informed decision one must investigate how the company is run. Questions to answer range from looking at the numbers to where the CEO’s are wanting the company go in the future.
Assets
Comparing the final asset numbers from September 27, 2008 and March 28, 2009 it is obvious that the company has more assets. The total assets at the end of September 2008 were $39,572 million and at the end of March 2009 it was $43,237 million. (www.apple.com) Looking closer we see that although the cash is substantially less, the short term marketable securities has more than doubled. (www.apple.com) What does this imply? It says that the corporation is looking to the future and making investments.
Inventories show a decrease of $197 million between the two terms. (www.apple.com) This could mean that the corporation is not making as many products or that sales are high and they are selling more than they are able to make.
The rest of the assets for Apple remained consistent between the two quarters.
Liabilities
Liabilities are what the corporation owes or needs to pay out. September 27, 2008 showed that accounts were $5,520 million while at the end of March, 2009 showed $3,976 million. (www.apple.com) Likewise, the accrued expenses were less in the later quarter. These amounts could imply that Apple was able to pay off loans, or remove some debt.
Inspecting the shareholders’ information, we see that shareholders have been investing more. We also see that the shareholders’ earnings have increased. (www.apple.com) One could conclude from this information that the corporation is doing well financially.
Conclusion
I not only looked at the numbers but took into consideration the amount of time the company has been in business. After my research I have concluded that I would
References: Retrieved July 21, 2011 from http://www.apple.com/pr/library/2009/4/22results.html