Preview

Financial Analysis of Apple Inc.

Powerful Essays
Open Document
Open Document
807 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Financial Analysis of Apple Inc.
Financial Analysis

(Submitted by)

Abstract
The following paper aims at discussing the financial position of the American multinational corporation, Apple inc., which designs and markets consumer electronics, computers and personal computers mobile communication devices, and portable digital music and video players, as well as sells various related software, services, peripherals, and networking solutions. Apple Inc. together with subsidiaries sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative customers. As of September 26, 2009, it had 273 retail stores, including 217 stores in the United States and 56 stores internationally. In the paper, the financial analysis has been done for the latest 3-5 years and the resulting ratios are examined for trends and also compared to industry ratios for those years. Profitability and solvency ratios are the two ratios taken to measure company performance.
Key words: liquidity ratios, profitability ratios, trends etc.

Main Body
The financial position of Apple Inc. with personal computer systems industry is shown below: Growth Rates % | Company | Industry | S&P 500 | Sales (Qtr vs year ago qtr) | 48.60 | 46.50 | 15.80 | Net Income (YTD vs YTD) | 66.50 | 61.10 | 90.50 | Net Income (Qtr vs year ago qtr) | 89.80 | 82.60 | 121.60 | Sales (5-Year Annual Avg.) | 38.97 | 35.01 | 7.78 | Net Income (5-Year Annual Avg.) | 98.68 | 86.79 | 8.56 | Dividends (5-Year Annual Avg.) | NA | NA | 5.16 |
Financial data in U.S. dollars
Industry: Personal Computer Systems
From the above data, (yahoo finance. Com) it can be seen that Apple has been an industry outperformer. Since the last five years if we average out the performance of Apple inc. we can see that the sales and net income of Apple



References: 1. (Stilgar, 2007), Apple financial analysis, retrieved from: http://blogs.indews.com/financial_analysis/apple_financial_analysis.php on, 18-06-2010. 2. Jonathan Richey, Craig Maddron, “Financial analysis of Apple Inc.”, retrieved from: http://web.mac.com/jonathanrichey/My_Portfolio/Publications_&_Papers_files/apple%20analysis.pdf on, 18-06.2010. 3. http://www.scribd.com/doc/31945598/Apple-Company-Analysis. retrieved on 18-06-2010

You May Also Find These Documents Helpful

  • Good Essays

    Accounting statements and ratios provide a great deal of information about a company’s financial stability. Some of the concepts to be discussed in further detail include horizontal analysis, current ratio, quick ratio, and cash to current liabilities ratio. A horizontal analysis is used to compare data from two or more periods side by side. The current ratio reveals the relative amount of working capital by dividing current assets by current liabilities. A quick ratio is calculated by dividing the assets by the current liabilities. This paper will examine the financial standing of Apple, INC and provide recommendations on how to better improve their financial gains in the future.…

    • 672 Words
    • 10 Pages
    Good Essays
  • Powerful Essays

    Mkt421 week 5 individual

    • 1692 Words
    • 7 Pages

    References: Apple Inc. (2011). Annual Report Pursuant to Section 13 OR Fifteen (D) of the Securities Exchange Act of 1934. 26: October. Retrieved from http://files.shareholder.com/downloads/AAPL/1826229879x0xS1193125-11-282113/320193/filing.pdf…

    • 1692 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    March 26, 2011 Apple pleasantly reported that the cash flow from operations was over $6.2 billion looking ahead in the third quarter to make up to $23 billion and expect diluted earnings per share of about $ 5.03 (Apple, 2011). The current total assets of Apples recent annual reports were posted in the “second quarter revenue of $ 24.67 billion and recorded second quarter net profit of $ 5.99 billion, or $ 6.40 per diluted share” (Apple, 2011). According to Apple (2011), Comparing the results in” the revenue of $ 13.50 billion and net quarterly profits of $ 3.07 billion, or $ 3.33 per diluted share, in the year ago quarter” (Apple, n.d.). International sales accounted 59 % of the quarter’s revenue. In giving a 41.4 % compared to 41.7 % (Apple, 2011).The orders of current assets are as follows:” a category, assets include current assets, fixed or long-term assets, property, intangible assets, and other assets”(Reference for Business,…

    • 1398 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Why Invest in Apple Inc.

    • 1620 Words
    • 7 Pages

    This paper presents a brief discussion and analysis of Apple Inc. using the Strengths, Weaknesses, Opportunities and Threats (SWOT) management model as a way of providing the reader an “at a glance” perspective prior to making a decision to invest in the firm. Some of the company’s financial figures obtained from its recently published 2011 unaudited financial reports such as the income statement, balance sheet and cash flow reports are included in the analysis and will be used as a reference for the explanation of the concepts here reviewed.…

    • 1620 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    revenue recognition

    • 1779 Words
    • 8 Pages

    Refer to the financial reports of Apple, Inc. for the year ended September 25, 2010…

    • 1779 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Hassan Private Label

    • 1077 Words
    • 5 Pages

    Question 1: How would you describe HPL and its position within the private label personal care industry?…

    • 1077 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Apple through its innovative hardware, software, peripherals, and services aims to be a continued leader at bringing the best user experience to its customers. With its unique ability of designing and developing its own operating systems, hardware, application software, and services, Apple provides its customers with new products and solutions with ease-of-use, seamless integration, and innovative design. The Company has various products like the iPhone, iPad, Mac, Apple TV, and Operating systems like iOS and Mac OS X. Apple, through its iTunes store, has broadened its platform and delivery of third-party digital content and applications. The Company also supports various software development communities that develop software applications complementing its offerings.…

    • 1604 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Our analysis of Apple Inc. will incorporate the general overview of the company and how it records it revenues. We will observe how they make an honest effort to be within compliance of all accounting standards according to the Financial Accounting Standards Board for recording and disclosure of its income. Apple’s leading competitor, Google Inc., will also be examined to see whether they are comparable to Apple and still within compliance of the Securities and Exchange Commission and FASB for revenue recognition. Apple takes on design, development and marketing of personal computers, portable digital music players, and media devices that exceed the reach of everyday needs. The company also sells a variety of related software, services, networking solutions, and digital content and applications through its centralized internet store. The company’s assortment of attributes consist of iPhone handhelds and iPad portable multimedia and computing devices, Macintosh computers, and iPods line of portable digital media players. The company primarily operates in the US. It is headquartered in Cupertino, California and employs 46,600 employees (DATAMONITOR).…

    • 1412 Words
    • 6 Pages
    Powerful Essays
  • Best Essays

    A Capstone of Apple, Inc.

    • 3213 Words
    • 13 Pages

    Lliev, V., Lindinger, A., & Poettler, G. (2004). Apple Computer Inc. Strategic Audit. Retrieved from http://www.Andreaslindinger.Net/Downloads/Strategicmgmts-Lindingeretal.pdf…

    • 3213 Words
    • 13 Pages
    Best Essays
  • Powerful Essays

    References: Arvidson, E. (n.d.). Target Audience for Mac or Apple Computers. Retrieved October 10, 2012, from EHow Tech: http://www.ehow.com/info_8737092_target-audience-mac-apple-computers.html…

    • 10056 Words
    • 41 Pages
    Powerful Essays
  • Better Essays

    In conclusion, challenges lie ahead for the Apple Company. Apple’s positives easily outweigh its negatives at present. The stock remains something of a bargain in this frothy market, too, notwithstanding its recent rally. Indeed, trading at about 16 and 14 times the consensus share-net estimates for fiscal 2014 and fiscal 2015, respectively, the good-quality issue still looks to have room to run. Dividend growth will likely be healthy, as well, with the company now looking to return more of its cash hoard to shareholders. And Apple’s excellent finances make its shares suitable for most…

    • 1017 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Final Analysis

    • 906 Words
    • 4 Pages

    Financial analysis has an important role in the changing economic environment. It helps in understanding of the correctness and efficiency of the use of financial resources in generating company earnings. It gives company’s an opportunity to evaluate its financial operations and market position, to identify possible risk, to notice mistakes and make plans for the future. The evaluation of a company’s financial position and operating efficiency can be regarded as part of financial policy. With that being said, a skillful management of resources must be based on the results of financial analysis.…

    • 906 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Ryanair

    • 447 Words
    • 2 Pages

    In April 1986, the Ryan brothers announce that Ryanair will offer service between Dublin and London, a route dominated by Aer Lingus and British Airways. AL and BA offer a range of tickets with varying restrictions and varying classes of service, but the least expensive, unrestricted round-trip fares were priced at IL208, far higher than the IL98 that Ryan Air announced. Ryanair’s strategy to launch a single far no restriction ticket at such a low price will gain market share quickly as well as possibly obtain some of the 750,000 travelers that opt to use rail and sea ferries for IL55.…

    • 447 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Operating activities of a company can be mainly measured by its profitability indicators. Therefore in analyzing Union Bank’s operating performances, we have taken few financial balances and ratios and compared their progress during last few years as follows.…

    • 1937 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    KEY OPERATING AND FINANCIAL DATA OF LAST FIVE YEARS HAVE BEEN PRESENTED BELOW IN SUMMARIZED FORM…

    • 518 Words
    • 3 Pages
    Satisfactory Essays