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Financial Analysis of Apple Inc:

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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) This value can cover the areas of Phnom Penh and 5 provinces around Tonle Sap Lake (using $100 bill). 4

Horizontal Analysis:
Horizontal Analysis Apple’s sales increased steeply by 52% and 66% between 2009 to 2010 and 2010 to 2011. COGS increased 54% in 2010 leading to lower gross margin due to higher cost structure for new product ( iPad ). Gross margin in 2011 was improved due to...

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