...Apple Inc Financial Report Analysis FINC 330 Business finance instructor: Philip Bradley Prepared by: Table of Contents Page 1) Company Description……………………………………………….…...... 2 Company background………………………………………..….. 2 Industry analysis………………………………………………..... 2 Products and services…………………………………….…......2 Investment strategy…………………………………….……...…3 2) Market Analysis……………….………………………………................... 3 Direct competitors…………………......…………………………. 3 Financial performance comparison…………………......………3 Growth comparison…………………......…………………...…...4 Trailing total returns comparison…………………......…………4 Ratio comparison…………………......…………………………. .5 Detailed ration comparison…………………......……………5 3) Financial Performance Analysis………………………………………...... 6 Ratio analysis........................................................................... 6 Detailed analysis................................................................. 7 4) Recommendations ……………………………………………………..… ..8 5) Conclusions……………………………………………............................ ..9 6) Reference…………………………………………………………………...10 7) Appendix……………………………………………………………….....…11 Income statement....................................................................11 Balance sheet.......................................................................... 12 Cash flow........................................................................
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...Business Analysis II MGT 521 October 10, 2011 Hoda Bagdady-Asal PhD Abstract The following is a business analysis of the Apple Company. This analysis has been used to determine the financial health of the Apple Company through review of its financial statements. Also, I have included a summary of Apple’s technological advantages over other companies in the same industry, as well as, a benchmarking analysis also comparing Apple to other companies. To invest in a company or not, its economic activities gives idea of the status in the market. Financial statement gives information of financial status of the company as well as its stability. Financial statement is an accounting report of the financial activities of a company base on the entrance and exists of money. Managers use financial statement of the company to evaluate performance of their employees, to prepare a budget of the company base on expectations, to make a decision that can modify operations in the company, for example, when Jobs came back to Apple in 1997 as a chief executive officer, base on the financial statements, closed plants, reduce number of employees, and sold stock to Rival Microsoft Corporation. His purpose was to obtain capital to inject to the company. Also manager uses financial statement for annual report of the company to stockholders. This financial statement is important for investors, lending companies, stockholders, for example...
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...Introduction: Apple is an American multinational corporation located in Cupertino, California. The company manufactures and sells personal computers, software applications, cell phones, portable digital music devices, and networking solutions. Most importantly, it specializes in designing and producing unique products such as: iPhones, iPads, MacBooks, iPods, iCloud, and certain operating software. Apple Inc. was founded in April 1, 1976 by Steve Jobs, Steve Woznaik, and Ronald Wayne. According to the CNN Money website, Apple has about 453 retail stores and 92,600 employees in 16 different countries as of March 2015. Furthermore, Apple’s stocks are publically traded in the NASDAQ stock exchange market. The MacRumor website states that the value of Apple’s stock prices continues to rise competing with other fortune 500 companies like Exxon Mobil, Google, Wells Fargo, and General Electric. As of July 24th, 2015 at 4:08 PM EDT, Apple’s stock price closed at a value of $124.50. The company uses its core competencies which is brand power and high sales volume (Revenue of $182,795 million in the first quarter of 2015) to achieve a sustainable competitive advantage in the business market (Fortune 500, 2015). However, as Apple continues to grow and expands its product line and entry into new markets, the company has to guard against stiff competition from companies like Google and Samsung. Apple is committed towards providing the best computing experience to its customers through...
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...------------------------------------------------- Apple Inc. Business Analysis Category: Business Autor: Mike 26 July 2010 Words: 3002 | Pages: 13 Business Analysis of Apple Inc. On April 1, 1976 Steve Jobs, Steve Wozniak, and Ronald Wayne joined together to form Apple Computer Incorporated. The concept behind their company was the creation of an inexpensive, simple to use personal computer kit. Working out of Jobs' garage in Cupertino, California the trio designed and manufactured their first product in three months. They named this product the Apple I and it went on sale in July 1976 for $666.66. Six months after the release of the Apple I, Ronald Wayne opted to sell his share of the company back to Jobs and Wozniak for a meager $800. Soon thereafter multimillionaire Mike Markkula joined Apple and on January 3, 1977 the company was incorporated. Apple continued to gain momentum and was one of the fastest growing companies by the end of 1978. With the introduction of the Apple II plus, the company enjoyed a 400 percent increase in sales in 1979. In December of 1980 the company went public and within minutes the 4.6 million shares sold out at a price of $22 per share. An additional 2.6 million shares was also sold out by May 1981. However, the firm suffered its first major fallback with the release of the Apple III in September of 1980. The newest version had not undergone necessary testing due to time constraints and pressure from upper management. This proved to be extremely costly mistake and by 1984 the Apple III...
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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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...Business Analysis Part I Pamela Lewis Management 521 October 10, 2011 Dr. Melanie Brown Business Analysis Part I The company tasked a mutual fund manager to evaluation Apple Incorporated to determine if this would be a sound investment for the company. The mutual funds manager will conduct a business analysis on Apple Incorporated and present the recommendations to the company. Apple Inc. is a company known for its vibrant line of products and the innovation it brings to those products. A business analysis is the practice of diagnosing the needs of a business and establishing solutions to business dilemmas. This business analysis is simply a collection of information that will aid in deciding if Apple Incorporated has the stability to sustain a profitable portfolio. This analysis will include a SWOTT analysis, an evaluation of the company stakeholders and their needs and wants, and an explanation of how the company is fulfilling those needs. SWOTT Analysis Chart Strengths (Internal) | Weaknesses (Internal) | * Strong brand image provides and edge over competitors * Robust financial performance strengthens investors’ confidence and provides capital for future avenues * Focused Research and Development driving innovation and consolidating its market position | * Patent infringement lawsuit may affect financial condition and operating results * Product recalls may harm Apple’s reputation and add significant warranty and other expenses | Opportunities...
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...The strategy of the mobile phone industry: A comparative analysis of Apple, Sony, Xiaomi The strategy of the mobile phone industry - a comparative analysis of Apple, Sony, Xiaomi I Executive summary The paper sheds lights on the strategy of three mobile phone industry and that task is to perform comparative analysis on Apple, Sony and Xiaomi. The author has first started with the analysis of the macro-environment using strategic analytic tool called PESTLE. The author has used tools such as Porter’s Five Forces and SWOT to analyze the micro-environment of a mobile phone industry and define Key Success Factors that are essential to be included in company’s strategy. Moreover the paper characterizes the comparative analysis such as objectives, strengths, weakness, financial analysis (quantitative), Vario analysis (Qualitative), merger and acquisitions, market share and competitive advantage strategy, of Apple, Sony and Xiaomi. At the end, the author of this assignment has given his recommendation to these three industries and concludes with a set of challenges being faced by mobile phone industry to create and maintain customer values and profit margins for present and future business successes. The strategy of the mobile phone industry - a comparative analysis of Apple, Sony, Xiaomi II Table of Contents LIST OF ABBREVIATION ..................................................................................................................
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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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...305: Business Finance Spring 2016 Midterm Paper: Financial Analysis on Apple EXPECTATIONS & EVALUATIONS The objective of this paper is to thoroughly analyze Apple’s financial history and status for the last five years (2003 – 2007). Other important topics will be discussed which include: the company’s background, its assets, bonds, stocks, etc. To support the analysis, different relevant ratios will be calculated for Apple Inc in order to estimate the company’s current status, and also to compare Apple Inc. to the computer industry and one of its major competitors – Dell. The financial analysis of Apple is based on evaluating company and industry data from various sources. A trend analysis was performed using data for the last five years, and presented in Excel charts and tables. Finally, I computed various ratios for Apple, and compared them to industry norms, and to Dell’s. Numerous graphs were created using MS Excel to support the analysis. EXECUTIVE SUMMARY History Apple Computer was formed in April 1976 by 25-year-old Steve Wozniak and 21-yearold Steve Jobs—both college dropouts. After selling a van for some extra start-up cash, the two set up shop in the Jobs’ family garage at 2066 Crist Drive in Los Altos, California, to start building computers. In 1977, Jobs and Markkula hired Michael Scott as the company’s first president and Chief Executive Officer (CEO).8 In April of that same year, Apple decided it would be beneficial to their marketing strategies...
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...Business Analysis of Apple Inc Apple Computer Company originated on April 1, 1976 by Steve Jobs and Steve Wozniak, dropped out of high school. At the time of forming their partnership, Steve Jobs worked for Atari and Steve Wozniak worked at Hewlett-Packard. Their company initially started in Steve Jobs’ garage. The first computer was the Apple I, followed by Apple II which launched in 1977. By 1980, Apple III was released and they were able to employ several thousand people. Apple or “the company” is engaged in design, development and marketing of personal computers, media devices, and portable digital music players (Research and, M. 6). The company also sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The two master minds behind the Apple branding has lead to $65.23 billion dollars in sales in 2010. The amount of technical devices this company has produced over the years has earned superior creditability in the technology field for stationery and portable devices. Today Apple’s annual review is more than 60 billion, making them the largest technology company in the world. Apple aims to continually invest in research and development for products that best serve the needs of the market. It is very important in the role as a mutual fund manager, to evaluate the business analysis of Apple Inc. before making the decision of whether or not to invest into this company. In...
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...Our talk is divided into 2 main parts: Ratio and Cash flow analysis. Firstly I will talk about how to measure and decompose ROE. Then Anuar and Kostas will look at another concepts of Ratio analysis and finally Min Xe going to explain cash flow analysis. And we will be glad to answer any questions that you may have at the end or during our presentation. Financial analysis is the examination of a business from a variety of perspectives in order to fully understand the financial situation and determine how best to strengthen the business. Financial involves examining historical data to gain information about the current and future financial health of a company. When looking at a specific company, the financial analyst will often focus on the income statement, balance sheet, and cash flow statement. There are two main tools of financial analysis: ratio analysis and cash flow analysis. Ratio analyses is used to evaluate relationships among financial statement items. it is Single and the most important technique of financial analysis in which quantities are converted into ratios for meaningful comparisons, with past ratios and ratios of other firms in the same or different industries. Ratio analysis determines trends and exposes strengths or weaknesses of a firm. Cash flow analysis - An examination of a company's cash inflows and outflows during a specific period. The analysis begins with a starting balance and generates an ending balance after accounting for all cash receipts and...
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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 Inc. Apple Inc. formerly Apple Computer, Inc., is an American multinational corporation headquartered in Cupertino, California that creates and retails consumer electronics, computer software, and personal computers. Apple’s mission and vision summarizes its committed efforts in bringing the best user experience to its customers through its advanced hardware, software, peripherals, and services along with a unique ability to design and develop its own operating system, hardware, application, software, and services, in order to provide its customers new products and solutions with superior case-of-use, seamless integration, an innovative design (“Apple Inc. Form 10-K Annual Report”, 1, 2012). Company’s mission and vision statements against the performance of the organization Apple’s mission and vision statements and objectives are neither interchangeable nor autonomous. Without objectives, the mission and vision statements are impractical. Without the mission and vision statement the objectives have no relevance. Both statements are too broad to be measurable, and the objectives are too definite to provide the big picture. When properly coordinated they strike a balance that helps to shape the business operations and service strategy. Apple Inc.'s mission statement is as follows - Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through innovative hardware, software and...
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...Business Analysis Business Analysis In this paper, an overall business analysis of Apple Inc. will discuss the company’s financial statements, the company’s financial health and how it compare to other companies in the industry and globalization and how it has affected the company’s business strategies. Lastly, a benchmarking analysis will be conducted in the following comparison with other companies in the same industry. Apple Inc. has the talents of Steven Jobs along with other top idealists. Having such talent clearly gives Apple the advantage over other competitors in this industry. The collaborative efforts of the leaders give Apple Inc. a clear strategic advantage. Apple main goal is to stay on top of its competition. In order to accomplish this goal, the employees have to spend long hours determining what the consumer’s want and how to design their products based on that outcome. A good example would be the development of the iPhone. The iPhone was derived from a display of information of the iPod. This included a bigger touch screen that helped in the development of the smart phone. This vision didn’t stop there; Jobs began to think in the future toward concepts of applications for the smart phone. Once it was realized that the iPhone was a personal computer, three years later Apple Inc. introduce the iPhone and its application system. According to (Bajarin, 2011) Apple raises the bar with every new generation of the iPhone. Apple’s new version of the iPad has stood...
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...Financial Analysis Financial Accounting for Managers Dr. Olajide February 13, 2016 This paper will analyze non-financial factors impacting the investment decision of companies in today’s market. The paper will use Apple as the example within the paper. In the process it will look at the annual report from an investor’s standpoint and evaluate the performance of the company and the reasons and the reason for or not investing. Then from an investor’s view it will discuss Three (3) non-financial factors that suggest investing in the company. (Strayer University, 2016). From an investor’s view, review the last annual report for chosen company. Use financial analysis tools of liquidity, profitability, and solvency to evaluate the company’s performance and reasons for investing or not investing. Include the company’s ranking in the industry, and its major competitors. The 2015 annual report for the Apple Corporation shows that the liquidity, working capital that a company can get a hold of and use quickly, (Kimmel, 2013). The liquidity for Apple would work out to be current assets, $290,479 million (-) minus current liabilities, $171,124 Million = $119,355 Million. (Apple Inc, 2015). This amount shows that the company has enough to pay for the liabilities and still have working capital to work with for new products. For the profitability of Apple, here we will work out the net profit margin. Which will be, net profit, $ 53,394 Million (/) divided by Revenue $ 233,715 Million...
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