...Apple Financial Performance General Notes: This financial analysis for Apple Inc was carried out for the year 2007. The first section of the Financial Analysis will detail my preconceived notions of Apple (without the facts in hand). The second part of the Financial Analysis will review Apple's stock performance, various financial ratios, competitors, market segment. Interest coverage ratios, dividend yield ratios, and dividend payout will be discussed as well. The financial analysis will conclude with my opinion of Apple's future prospects, its stocks, and whether it is creating value to its shareholders. Apple General Information On January 3, 1977, Apple was officially incorporated in California. Apple's stock is traded under sticker Symbol "AAPL" in NASDAQ stock exchange, and in Frankfurt Stock Exchange, Apples' shares trade under the symbol "APCD". Apple became a public company in 1980, and in its Initial Public Offering (IPOD), Apple's shares were offered for $22.50. On a split-adjusted basis, Apple's Initial Public Offering stock price was $2.75. Apple has no preferred stock outstanding. Apple, Inc. Dividend Policy Apple doesn't pay its stockholders any dividends. In fact, the last time Apple paid dividends was in December of 1995. Apple paid dividends from 15 June 1987 to 1995. As Apple does not have an active dividend policy, Dividend Reinvestment Program (DRIP) is also not available to investors. Cash dividends that Apple did pay, ranged from .06$...
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...APPLE APPLE [Company name] | [Company address] [Company name] | [Company address] Financial Analysis writer Financial Analysis writer 2015 2015 ELECTRONIC INDUSTRY OUTLOOK The electronic industry was developed in the twentieth century and now they become a worldwide industry who earns billions of dollars for every year. Electronic devices are used by modern people in every field of life like use mobile phones and computers for their household and commercial needs. These devices are assembled in semi-automated and automated factories. Electronic industry products were assembled from the integrated circuits. With the passing of days the size of the electronics industry will enhance and they used Toxic material which were not easily recycled. So International courts develop rules and guidelines to address the problems of recycling of toxic material. The Electronic industry will usually be known as consumer's electronics. Different types of products are used by everyone in consumer electronics. For example consumer electronics used in office productivity, communication, and entertainment. Radio broadcasting was the first key consumer product introduced in the twentieth century. Afterwards Calculators, recorders, digital cameras, telephones, Mobiles, personal computers, DVDs, Camcorders and GPS automotive electronics were developed and included in consumer electronics. Now in 2015 these products are made based on latest technologies and everyone used latest mobiles and...
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...Financial Analysis of Apple Inc: Financial Analysis of Apple Inc Subject: Financial Management Group Members : Ms. Ouch Kanika Ms. Hour Kimhun Mr. Pen Vanndarong Lectured by: Mr. Sok Ousa Academic Year: 2011-2012 1 Table of Contents: Table of Contents Introduction Horizontal Analysis Vertical Analysis Ratio Analysis – Profitability Ratio Analysis – Efficiency Ratio Analysis – Liquidity Ratio Analysis – Leverage Conclusion & Recommendation Limitations of the Analysis 2 Introduction: Introduction Corporate Facts: Name: Apple Inc. Founded: April 1976 Founders: Steve Jobs Steve Wozniak Ronald Wayne Head Office: Cupertino, California Industry: Computer hardware Computer software Consumer electronics Digital distribution Products: iPhone , iPad , iPod, iMac, Mac Books and other related hardware and software Marketing: Direct: retail and online stores Indirect: resellers & cellular network carriers 3 Introduction: Introduction Reportedly, Apple is one of the most successful technology companies in the world. Apple business strategy focuses on research & development in order to compete in technology world. Based on Forbes (April 2012), Apple’s market capitalization worth $546 billion, which is: Almost twice of Microsoft ($273.5 billion) More than twice of IBM ($238.7 billion) More than twice of General Electric ($213.7 billion) More than twice of Wal-Mart ($208.4 billion) More than twice of Google ($203.2 billion) More than thrice of Coca Cola ($158.8 billion)...
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...Description: Apple, Inc. was founded by Steven Paul Jobs, Steve Wozniak and Ronald Gerarld Wayne in 1976. The company is headquartered is in Cupertino, CA. Apple designs and manufactures personal computers, related software and mobile communication devices. It designs Mac laptops and software such as OS X, iLife and iWork. Apple was a pioneer in digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with the iPhone. Apple has recently introduced its iPad which is drastically changing mobile media and computing devices. The company's products and services include Macintosh computers, iPhone, iPad, iPod, Apple TV, iTunes Store, and many other software services. It sells its products worldwide through its retail stores, online stores, direct sales force, and third-party cellular network carriers. Notable U.S. cellular companies that currently offer the iPhone are at&t, Verizon, and Sprint. The company also sells a variety of third-party Mac, iPhone, iPad and iPod compatible products. Which include application software, printers, storage devices, speakers, headphones, etc. In the previous months Apple’s stock price has increased over $200 per share. Many analysts claim that this spike is due to the high productivity and retained earnings that Apple disclosed in last quarter’s financial statements, as well as the company’s recent declaration that they will be paying dividends in the future. 2. Intrinsic Value Analysis: A. Multiple...
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...Stock Trak Investment Report [Portfolio Investment Analysis] Portfolio management is an important factor that determines the performance of the portfolio. To perform well in the portfolio, it is not only essential to develop personal investment strategies, but analyzing current financial trend is also vital. Stock Trak is an online portfolio simulation that allows students to try out different investment strategies, and also get a hand on experience in what the real market trading conditions are. By managing the portfolio, I have acquired some new knowledge of investment strategies and also become more familiar with the current market by following closely to the financial headlines. My portfolio composed of only a few specific stocks of some large information technology companies. The main compositions are Apple Inc., Google Inc., and International Business Machines Corp (IBM). By investing different stocks in the same industry, it comes to my attention that even though they are in the similar category, the life cycles of these stocks are still very different. It is interesting to compare and analyze the different progress of those companies, and also to see how different factors affecting the performance of a specific stock and the portfolio as a whole. [Portfolio Performance Analysis] My overall return is 7.92%, which is about average and is a little over performed comparing to the S&P 500 average of 7.71% during the same period of time. Analyzing the historical data...
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...Breakeven for Microsoft and Apple The main purpose for this communication is to address the breakeven for Microsoft and Apple when they develop a new computer operating system. It will also expound on the various challenges that this breakeven rise for Apple, how Apple can overcome these challenges and the sources of Apple’s competitive advantage. Additionally, this memo will address how Apple’s financial performance compares to its rivals, what a DuPont formula analysis explains and challenges that Apple faces moving forward. It will also discuss the moves that Apple should consider moving forward. Subsequently, it will also discuss the stock performance of Apple and how Apple’s retail strategy supports its overall approach to competitive strategy. Lastly, this memo will articulate how important Steve Jobs was to Apple’s future. Breakeven for Microsoft when they develop a new computer operating system The breakeven for Microsoft when they develop a new computer operating system mostly depends on the product being developed since each on them varies. However, Microsoft has ensured that it maintains a breakeven of about 50% for most of its new computer operating system that ensures that Microsoft can cover its expenses prior for it attaining a profit. Microsoft also sets the breakeven quantity in terms of quantity, and the number of months it has to sell so that it can recoup the expenses incurred while developing the new operating system. For example, it had to sell 17...
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...Evaluating Apple Computer’s Annual Report Axia College of University of Phoenix Apple Computer Financial Report On November 5, 2008 Apple Computer filed the company’s 10-K report with the Securities and Exchange Commission (SEC). Although the company is required to file yearly reports with the SEC financial managers and investors use this information to help make sound financial judgments when deciding to invest in Apple Computer. In the report financial ratios, including liquidity, asset management, financial leverage, profitability, and market-based, will be discussed based on the last two years of data. The report also analyses Apple’s working capital management, long-term debt, types of stock, stock selling prices, the weighted average cost of capital, and an evaluation of the data and how the company compares to industry averages. The report will conclude with a recommendation of whether an investor should buy Apple stock. Financial Ratios According to Moyer, McGuigan, and Rao (2007), “Management uses financial ratios for analysis, monitoring, and planning purposes.” Financial ratios assist management in indentifying the strengths and weaknesses of the company, aid management in the monitoring the company, which may uncover a problem in a certain area of the firm’s operations and institute remedial action, and aids in planning. Analyst must keep in mind that while financial ratios are important that one ratio alone should not be used to make financial decisions...
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...FINANCIAL STATEMENT ANALYSIS OF APPLE INC. INTERMAITE ACCOUNTING 312 PROFESSOR BRODERICK MARTINEZ BY: MURTAZA MOIZ TABLE OF CONTENT Cover Page Pg. 1 Table of Contents Pg. 2 Introduction Pg. 3 History Pg. 3 Financial Statement Breakdown Pg. 4 Conclusion Pg. 11 Financial Statements Pg. 12 Work Cited Pg. 16 INTRODUCTION Today this Financial Analysis will serve its purpose as a company which is one of the top leading in making computer manufacturing parts. 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. Apple Inc. is the popular name on almost 1 out of 5 people in the world, whom speak of it. It is by far one of the...
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...Apple Inc. 1 Apple Inc. 2 Apple Inc. Executive Summary This report provides an in-depth analysis of Apple Inc. (AAPL), with necessary recommendation increasing the wealth of the company and their shareholders. The primary competitors of AAPL would include companies such as the Intel Corporation, Target Inc. and any company that sell technological products. The total revenue for the most recent fiscal year was $182,795 billion dollars on their assets and $39,510 of net income. Timothy Cook has been the CEO of Apple Inc. since 2011, and received $9,222,638 in compensation last year, primarily from non-equity compensation. AAPL maintains their social image in society by creating products for all types of consumers and uses an environmentally friendly manufacturing processes when producing products. AAPL return on equity is 48%, which is 20% higher than the Intel Corporation, one of their many competitors. AAPL operating margin is 1.0% higher than, has 0.18 higher assets turnover and a higher financial leverage than of 0.43 compared to INTC. After analyzing AAPL financial data the best approach for AAPL to increase their ROE is to use existing revenue, financial leverage and add additional services to already created products. There are a few unique risks that AAPL face which includes technological changes with the economy/environment, competitors creating new products at a faster pace and selling them at a cheaper price, as well as systematic risk related...
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...Apple Computers 2011 Financial Statement Analysis Abhaya Chauhan, Surya Dantuluri, Vininder Singh Apple Computers 2011 Financial Statement Analysis Abhaya Chauhan, Surya Dantuluri, Vininder Singh Contents 0 Introduction 2 Assets and Liabilities 2 Analysis of Various Ratios 2 Liquidity Analysis: 2 Current Ratio: 2 Quick Ratio: 3 Solvency Analysis: 3 Liability-to-Equity: 3 Times Interest Earned: 3 Profitability Ratio: 4 Return on Assets: 4 Return on Equity: 4 Activity Ratios: 4 RNOA (Return on Net Operating Assets): 4 Net working Capital: 5 Accounts Receivable Turnover: 5 Footnotes Analysis 5 Research and Development 5 Stock performance 6 Stock-Based Compensation 6 Provision for Income Taxes 6 Inventories 7 Property, Plant and Equipment 7 Accounts Receivable 7 Off-Balance Sheet Arrangements 7 Commitments and Contingencies 8 Lease Commitments 8 Accrued Warranty and Indemnifications 8 Conclusion 8 Appendix 9 References: 13 Introduction Assets and Liabilities Analysis of Various Ratios Ratio analysis is done from the values from the company’s balance sheets, cash flows, operating statements and income statements. These ratios give an overview of the company and these ratios can be compared with other companies. We have calculated various ratios from the financial statements given and explained how profitable for a shareholder to consider investing in Apple. Liquidity Analysis:...
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...5/28/2014 Apple Ife Matrix Analysis - Research Papers - Alexpadron MOZHISH1 UPGRADE Get Access to over 1,709,571 More Essays. Upgrade Your Account Now. RESEARCH DOCUMENTS BOOK NOTES AP NOTES Home » Miscellaneous Apple Ife Matrix Analysis By alexpadron | March 2008 Add to Library (0) Download Print Report this Essay Page 1 of 1 Apple IFE Matrix Analysis It was pretty surprising to me to find that all the different groups came up with fairly similar ratings in their IFE matrix for Apple Inc. My group, management, had the second highest rating at a 2.78 and I felt that we were fairly critical of the different strengths and weaknesses for the company. The groups that pertained to a more financial aspect like finance and accounting seemed to have lower scores, which were not as far above the average for utilization of resources internally. This seems interesting because many companies use resources outside their company to assist them in correcting financial problems. Also, there were a few strengths and weaknesses that every group mentioned in their matrix and they were: Steve Jobs leaving and then returning(W), large increase in inventory(W), products are globalized(S). It was interesting to see that Steve Jobs leaving and then returning was on everyone groups list because with out him these last few years Apple Inc. would probably not be where it is at today. The only downside to this is that there seems to be this great dependency on one person in...
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...Introduction Microsoft and Apple are in the electronic equipment industry, and have a NAICS code of 334111. Microsoft participates in the provision of developing and marketing software and hardware services. These products include, computers, phones, and intelligent devices. They also specialize in everyday software products such as Excel, Word, and PowerPoint. Microsoft’s target market is expansive. The Microsoft Suite is aimed for anyone that can use a computer. According to Yahoo Finance, Apple is considered to be one of Microsoft’s main competitors and allies in this industry. Apple engages in the design and manufacture of cell phones, media devices and computers. Some of the products designed and manufactured by Apple includes the iPhone, iPad, Mac and Apple watch.They also have consumer and professional software applications under the iOS, OS, and X brands. However, Apple also implements many of Microsoft’s software like Word and Excel in their products. Apple’s target market is very broad. They make their products for people of all ages that are consumer involved with simple innovative technology. As a business, not only is Apple Inc. (AAPL) significantly bigger than Microsoft Corporation (MSFT), but also has been growing at a fast pace. However, looking into investment opportunities, Microsoft has been outstanding. While the forecasts mention increase in growth for Microsoft Corporation over the next few years as indicated below, Apple Inc. is forecasted to decrease...
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...Business Environment – Apple Inc. Erin Kelly Management/MGT 521 April 29, 2012 Walter Goodwyn Business Environment – Apple Inc. Researching a company’s business environment will provide large amounts of data that could be used by investors, consumers, and even competitors. A company’s business environment consists of many things; this essay will review the three most important business environment factors; income statement, balance sheets, and cash flow. This essay will also compare Apple’s (#36) financial health to two of its Fortune 500, Top 50 competitors in the Information Technology (IT) industry; Hewlett Packard (HP) (#11) and Microsoft (#38) (CNN Money.com, 2011). These factors are important and provide valuable information about a company concerning its general financial health. Although financial statements are important, a company’s technological advantages, globalization, and benchmarking are also important. These topics also will be discussed in more detail throughout this essay. First, the Income statement of Apple Inc., HP, and Microsoft. Income Statement “An income statement, otherwise known as a profit and loss statement, is a summary of a company’s profit or...
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...Apple Computers Inc. is an American-based multinational company that creates consumer electronics goods and computer software. Known for predominantly manufacturing personal computers and facing rocky sales and low market share during the 1990s; In 2001 the introduction of the iPod music player established Apple as a leader in the consumer electronics industry. Their latest success came when the company expanded its range of products and launched the iPhone, iPod Touch and it newest brainchild the iPad. Among their popular line of products are the iPad, iPhone, and Macintosh computers. The software products include the Mac operating systems, iTunes, iLife suite, and iWork suite. Today, Apple is the largest technology firm in the world, with annual revenues of more than $60 billion. Apple continues to expand its portfolio by branching out into other sectors of the technology industry with development, designing, and creative marketing campaigns of personal computers, communication devices, servers, network solutions, portable digital music devices, and all their related accessories. http://en.wikipedia.org/wiki/History_of_Apple Managing the finances of a company such as Apple is not an easy job. The responsibility of the fund manager is to be knowledgeable of the pulse of the market and to ensure the welfare of the their clients to acquire a good returns on their investments. Extensive market research is required to stay abreast of the trends. In some cases, specializations...
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...Executive Summary Apple Inc., formerly Apple Computer, Inc., is a multinational corporation that creates consumer electronics, smart phones, tablets, personal computers, computer software, and commercial servers, and is a digital distributor of media content. Apple's core product lines are the iPhone smartphone, iPad tablet computer, iPod portable media players, and Macintosh computer line. Founders, Steve Jobs and Steve Wozniak effectively created Apple Computer on April 1, 1976, with the release of the Apple I, and incorporated the company on January 3, 1977, in Cupertino, California. Apple experienced modest, but above average growth from its founding until the mid-2000s when the popularity of its iPods and iTunes Store were joined by Apple’s release of the first iPhones. This combination, along with then-CEO Steve Jobs’ iconic leadership, catapulted Apple to successes rarely seen as it became the largest publicly traded company in the world by 2012. Our financial analysis of Apple revealed many things, not the least of which is the simple fact that Apple is a well-run, efficient, innovative company. Over the last three years, Apple realized a consistent positive trend in well over half of the twenty-two key financial ratios analyzed, highlighted by improvements in all profitability and inventory management ratios. It kept pace with the growth experienced in the technology and consumer electronics industries, despite significant gains in market share by giants...
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