Essay about Apple Inc. Financial Analysis

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

The figure above shows Apple Inc, the Market cap lead, and Dell, the Market cap last, corporations and their market share compared to the industry and the technology sector. As you can see above Apple Inc. is almost as close to the market cap for the Personal Computers industry. Although, it does have a smaller P/E ratio compared to the industry it still is the highest among the top leaders within the industry. Compared to the industry Apple’s does not have a debt to equity ratio, which is excellent. Apple’s net profit is also the highest within the top competitors and the industry. The price to free cash flow exceeds the industry as well as the technology sector.

Apple is company that enjoys one of the highest stock prices of any publicly traded company in today’s market. In the past year Apple stock prices have ranged from $103.13 to $161.6 in the past year alone (Yahoo Finance 2017). With Apple stock, there are trends during each calendar year that can cause the price to fluctuate. During the months of July and August we can see that the price of stock starts to rise. This could be attributed to time where school is beginning to start up again for that year. During this time, we see massive spending on supplies and equipment that students need to be successful in the classroom. One of these items that we see becoming an increasingly important part of education is a computer. Because of this, we see an increase in the sale of MacBook’s as students head back to school. Another trend that we see during the summer is the apple keynote convention. During this convention, Apple reveals new products to be released later that year. The iPhone 7 debut was envisioned as an industry changing configuration with only one

Current ratio shows that two companies may in a favorable position to obtain short-term credit, but current ratio does not consider the types of current assets these two companies has and how easily they can be turned into cash. Kohl’s has a stronger quick ratio than Dillard’s, indicating that Kohl’s has a little stronger “instant” debt-paying ability than Dillard’s. In other words, Kohl’s has a better ability to convert assets into cash than Dillard’s.

A decreasing trend in the current ratio indicated by JB Hi-Fi from 2015 to 2017 that reveals a lesser safety of margin for short term creditor. As we can see from the table current ratio has declined by 0.3 times. This effect is a distinctive sign that the organization may experience in the situation of considerable difficulties when they pay their present liabilities for short run. By these outcomes, it is obvious that regardless of whether the organization exchanges all - of its present

Part II.  Refer to the latest annual financial statements for the two following companies: Apple:

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

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

We chose to research Apple Incorporated, one of the most innovative companies of our generation. It is safe to say that nearly every one in the US and many foreign countries have used or at least heard of Apple products. We will be looking at the macroeconomic variables that impact Apple’s business as well as how the current developments in the industry have impacted Apple’s financials and we will also look at how Apple competes with other firms in the same industry.

I chose Apple for my course project mainly based on the fact that they release all their records to the public and they have excellent accounting practices. Their paper work is easy to read and follow and based on their records they have an endless amount of revenue in the billions. As we have discussed about Apple in class I was very intrigued how they looked in the books on a specific level of detail and this course project was the perfect way to take initiative to find out just how their numbers actually add up answering the following questions.

Apple, Inc. (formerly known as Apple Computer, Inc.) was incorporated in the State of California in 1977. Apple currently designs, manufactures, and markets a variety of computer and personal electronic products, including Macintosh computers, and the iPod digital music player. AppleÕs key markets are consumers, creative professionals, educational institutions, and business users.

The financial analysis expressed in this paper shows a comparison of two large firms in the communication and technology industry. Microsoft and Apple Inc. both deal in telecommunication gadgets and accessories within the United States and around the world. The paper focuses on the financial comparison of the two companies for two fiscal years of the year 2014 and 2015. A close analysis of the financial ratios is employed in bringing up the comparison. These rates are derived from the balance sheet and statement of income of both firms.

Apple’s annual report, as submitted to the United States Securities and Exchange Commission (SEC) on Form 10-K, lists its total assets as $47,501 for fiscal year 2009 and $75,183 for fiscal year 2010. Its largest asset for the same two years was $18,201 in short-term marketable securities in 2009 and $25,391 in long-term marketable securities in 2010. Accounts payable listed as $5,601 in 2009 and $12,015 in 2010. All figures are noted in millions (Apple, Inc. Annual Report). Apple does not report taxes collected from its customers that are paid to governmental authorities. Apple’s 2010 annual report lists cash, cash equivalents, and marketable securities valued in 2010 as $51,011 million and in 2009 as $33,992 million. Total current assets in the year of 2010 were $41,678 million and for the year ending 2009 were $31,555 million. Current assets are listed in the order

Apple Inc. has launched its iPhone in January 2007 (telegraph) as a new product in the market with latest technology and it was the first multi touch smartphone adding the feature of iPod and received an overwhelmed response by selling 270000 units. It had created a new record for a new company like apple, iPhone had laid a stepping stone for the success of Apple and till this time iPhone is the best seller product of Apple Inc. during first quarter of 2016 apple has sold over 74 million iPhones worldwide. (statista, 2016).

Apple Inc. is globally renowned as one of the leading companies, especially for its specialization in the personal computers and consumer electronics industry. The company is most well-known for the iPod, a digital music player and Macintosh, a personal computer released in 1984.