...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 = .228457737 (x) multiply that by 100 =$ 22.85Billion. (Apple Inc, 2015). This also shows that Apple is still a god company to invest in. Lastly will be the solvency of Apple. To show this the total...
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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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...Business Analysis for Apple Inc Robert A Smith II MGT 521 May 9, 2011 Mary Jo Payne, Ph.D. Business Analysis for Apple, Inc As children many people are taught that the only way to earn income is by obtaining a job, and a way to get more money is by logging additional hours on the job. This ideology is true, but for people who also value possessing the free time to enjoy life while in pursuit of financial success this way of life is also very wearing. Investing is a fiscal tool people can use to send their money to work. True investors understand that making their money work presents some risks, but with guidance and thorough analysis they can maximize their earning potential whether or not they receive a raise, decide to work overtime or look for a higher paying job (Investopedia, 2011). With many investment vehicles to choose from such as bonds, mutual funds, and company stocks, the most important thing to remember before investing is to do research and only invest money when there is a realistic probability of revenue. In this paper a Strength, Weakness, Opportunity, and Threat (SWOT) analysis of Apple Inc. was performed to determine if this electronic computer corporation giant is a worthy investment. SWOT Analysis |Strengths |Weaknesses |Opportunities |Threats | |Reputation |Product weaknesses |iPhones ...
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...Ocotober 31, 2012 Apple Financial Health As stated before in my business analysis paper, Apple is a very rich, prosperous, and innovative company. Its innovations and creativity has enable Apple to keep growing, striving, and propelling itself to the top of the personal computer industry. Apples dominancy and growth is not just known by people around the world it is documented and can be proven by Apple’s financial statements. Financial Statements On apples income statement one can see that their net sales rises each year for the past three years. Starting in 2009 where net sales were just $42,905 million, in 2010 $65,225 million, and then now to 2011 $108,249 million (Apple INC, 2011). This data shows that Apple’s net sales nearly triple from 2009 to 2011. Their gross margin also substantially increases starting at 17,222 million to in 2011 43,818 millions (Apple INC, 2011). This margin represents the percent of total sales revenue that the company retains after the direct costs associated with producing goods sold for a company. This means for the past three years Apple is able to make more profit then the cost that it takes to make its products. Furthermore as with every growing company comes more expenses so their expenses have risen from 2009 to 5,482 million to 10,028 million in 2011 (Apple INC, 2011). Their expenses are counteracted and accounted for by their net income which triples from 2009-2011 from $8,235 to 25,922 million (Apple INC, 2011). The net income...
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...Question and Answer: 16. List the amount of cash flows from each of the 3 activities: Operating, Investing, and Financing for the 2 most recent years. What was the increase or decrease in cash for each of these years? Answer: $ Million | 2012 | 2011 | Operating | 50,856 | 37,529 | Investing | (48,227) | (40,419) | Financing | (1,698) | 1,444 | Change in cash | 931 | (1,446) | 17.Were there any Non-Cash Investing/Financing Transactions? Describe the type and amount. Answer: No, there were no Non-Cash Investing/ Financing Transactions 18.What is the dollar difference between accrual net income and Cash provided by Operations? Answer: Accrual Net Income = $ 41,733 million Cash provided by operations = $ 50,856 million Difference = $9,123 million 19.What investing activity provided the largest inflow of cash in the current year? Answer: Proceeds from sale of marketable securities 20.What investing activity used the largest amount of cash in the current year? Answer: Purchase of marketable securities 21.What financing activity provided the largest inflow of cash in the current year? Answer: Excess tax benefits 22.What financing activity used the largest amount of cash in the current year? Answer: Dividends 23.Does the company have sufficient cash inflows from the appropriate category? Describe any problems the company many experience with cash flow from your analysis of the cash flow statement. Answer: 24.Show the change in...
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...| | |Case Study #3: “Apple Vs. Samsung” | | | | | |Anna Cunningham | |Aaron Keith | |Katherine Seo | |Xiaotao Wu | |Luke Revitsky | |Jiayi Ge | |Monday October 10, 2012 ...
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...the investor. Introduction Deciding to invest is a decision that should not be taken lightly. Investing can make or break you financially depending on how you play the cards you are dealt. The purpose of this paper is to provide a rationale for the U.S. publicly traded company indicating the significant factors driving the decision to invest in the company. A profile of the investor that is suitable will also be provided. Five financial ratios will be used to analyze the past three years of the company’s financial data and the financial health of the company will be determined. Based on the financial review of the company, the risk level paired with minimization strategies will be determined. The paper will conclude with recommendations of the stock as an investment opportunity. Investments come in many forms. The key to any investment is knowing what type of investor you are and knowing exactly how you want to see your returns from your investment. A financial manager’s role is to educate the client about the risks and rewards of investing in publicly owned companies. Apple, Inc. Apple Inc. (Apple) is a publicly traded company that is responsible for designing, manufacturing and marketing several mobile communication and media devices. These devices include personal computers, portable music players, and related software. Products and services provided by Apple include the iPhone, iPad, Mac...
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... Dr. Yan Ling ASSIGNMENT 2 FIRM ANALYSIS REPORT: APPLE INC. ------------------------------------------------- GROUP # 4 Sonny Nguyen || Brittany Krammes Larisa Zenokhova || Bryan Berduo Table of Contents Page # SECTION I – INTRODUCTION3 SECTION II – BUSINESS LEVEL STRATEGY3 SECTION III – VRIO FRAMEWORK OF RESOURCES & CAPABILITIES4 SECTION IV – VALUE CHAIN ANALYSIS6 SECTION V- INTERNAL WEAKNESSES7 SECTION VI –STRATEGIC ACTION RECOMMENDATION 7 A. REFERENCES…………………………………………………………………………………………………………….8 B. EXHIBITS………………………………………………………………………………………………………..……….11 SECTION I – INTRODUCTION For this analysis, we chose Apple Inc. because of its impact on the smartphone industry in the United States. First, the report will identify the business level strategy that the company has pursued and key factors that attribute to its success. Next, the report will use the VRIO framework to analyze Apple Inc.’s tangible and intangible resources, and capabilities. Then, a value chain analysis is provided to evaluate how Apple Inc. creates value for their customers, followed by a brief explanation of three internal weaknesses. Finally, based on what our group knows about the mobile industry in the United States and Apple Inc., we recommended strategic actions the company should take in order to maintain its position in the industry. SECTION II-BUSINESS LEVEL STRATEGY Apple Inc.’s existing business-level strategy within the U.S. branded...
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...Communicating the Change Introduction: Communication is generally known as the glue that holds organizations together. It is the way we share information, ideas, goals, directions, expectations, feelings, and emotions in the context of organized action. The change strategy for communicating the necessary changes made by Apple during the integration of iPod and iTunes business unit and the subsequent vision that kept the company flexible to remain competitive, is inherent in its ability to handle communication at all levels. The CEO’s vision provides clear direction for all the business units working together to meet shareholder expectations and at the same time provide value to their customers and employees. The organization works for the mission. Apple understands the importance of being continuously innovative with a vast and loyal army of Apple fanatics behind it to regularly come up with new products like iPad. (A) The communication plan grid is a separate document (B) ONE of the communication pieces: Debut a brand new product with a summary of the company's milestones “Apple followed its usual script for the new iPhone's coming-out party. Apple CEO Tim Cook, kicked off the festivities before an audience of reporters, bloggers, applications developers …” (MICHAEL LIEDTKE and PETER SVENSSON) The following script was created from a series of Apple’s communication strategy: We desire to continue to provide you with the latest technology; we are innovating at an incredible...
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...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 and financial report, paying close attention to the related current news and industrial trend, and using P/E ratio...
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...APPLE INC. Ryan Plumbo ACC 205 Thomas Sutton 7 Dec 14 The decision to invest in a company is an important one. When investing your money into the free market there is never a guarantee on investment. That is why a little bit of research and due diligence is always recommended beforehand. It is the hope that with this knowledge our investment will have a better chance at returning a profit. The company we will be looking at in this report is the tech giant Apple Inc. or to most just known as Apple. Apple Inc. (Apple), incorporated on January 3, 1977, designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company offers a range of mobile communication and media devices, personal computing products, and portable digital music players, as well as a variety of related software, services, peripherals, networking solutions and third-party hardware and software products. In addition, the Company offers its own software products, including iOS, the Company's mobile operating system; OS X, the Company's Mac operating system; and server and application software. The Company's primary products include iPhone, iPad, Mac, iPod, iTunes, Mac App Store, iCloud, Operating System Software, Application Software and Other Application Software. Some of Apple’s biggest competitors...
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...Apple Inc. Apple Inc Apple Inc. has become my favorite corporation because of their easy to use, unique, and innovative technology. They climbed 18 slots in the Fortune 500 this year to number 17. They have accomplished this by expanding their reach in existing markets, and always creating new ones. Apple is the largest publically traded company in the world by market capitalization. market value hit $600 billion on Tuesday, making them the most valuable company (Svensson, 2012). Apple was founded by Steve Jobs and Steve Wozniak in California on January 3, 1977. Tim Cook is the present day CEO who ensures they keep pumping out the newest technology. Apple is known for their differentiated and innovative products and have a very loyal customer base despite their high prices. The multi-colored apple logo has become an icon throughout the years and is used the most in their industry in product placement. They put their highest percentage of sales to their research and development department (over 489 million to date) which puts them in a situation where they sell the most innovative products, then can move on to newer technology while their competitors are trying to catch up. Innovative products and popular designs have given Apple a competitive advantage over their competitors as they are now finally associated with quality and uniqueness. While Apple is not the “giant” of their industry, they are the most profitable company in their industry and the 3rd most profitable...
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...Apple Inc.’s financial results for its fiscal 2012 ended September 29, 2012 show to be more profitable in comparison to its previous year. However, its marginal growth rate was not as profitable as its previous fiscal years. Apple reported the fourth quarterly revenue of $36 billion and quarterly net profit of $8.2 billion, or $8.67 per diluted share. In comparison to the year ago quarter, these results are up from revenue of $28.27 billion and net profit of $6.62 billion. Apple’s organizational structure consists of a division devoted to product creation and management and another dedicated to administrative functions. According to the financial analysis using monetary ratios, Apple seems to have a relatively strong standing. Although it is experiencing an overall lower level of profit compared to its booming history, it is excelling in most respective areas more than those of its competitors. In order to please its shareholders and show gratitude for their loyalty, Apple Inc., for the very first time, declared and distributed $2.65 dividends per share. I would be interested in investing in Apple because of its leading position as innovator in technology, its lack of long-term debt, and its undeniable ability to generate profits. Apple is organized into two sectors: management and product creation. Apple is a very secretive company and keeps everything to themselves to keep an element of surprise. They keep their organizational structure the same way. “Even employees...
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...business, whereas a person buying bonds will become a creditor to that company and usually has wants no decision making responsibilities. Apple, Inc. is one of the worlds richest companies and its stock prices has had a roller-coaster ride since Steve Jobs and Steve Wozniak founded it in 1976. On the other hand, the purchase of U.S. Treasury Bonds by bondholders has had a long history of helping America in the country’s times of need, especially during wars and other financial recessions. Buying bonds has also helped many Americans save for their retirement years or helped put their children through college. Apple began in a garage when both men had to sell their personal items and take out loans just to fulfill their first order of the Apple 1 computers they sold. Since then Apple has become one of the largest revenue companies in the world and is changing people’s lives everyday with their technology and products. Just like many other companies in the world Apple’s stock has had both good and bad years over the last twenty years, but through it all their stock has always bounced back from the edge of collapse. Compared to the 20 years of positive gains the S&P 500 companies have had since 1984; Apple, Inc. has had 18 years of positive gain over the same period, proving they are a steady and profitable stock to purchase for any investor. Apple grew their sales by over 65% in 2011 to $108 billion and they went on to exceed...
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...Prepare a brief report on your conclusions and illustrate with examples. Answer: I would opt for second economy, as in that economy I will have a ease of diversification which will help in mitigating risk. To design the investment portfolio of it is important to analyze different aspects which are the time for which the funds are being committed for the future needs, the expected rate of inflation and the expected payment that is likely to receive in the future. It is important to diversify your portfolio, so it is advised to focus on investing in different assets as it helps in mitigating risk and giving us adequate returns. Investing in the second economy will help in diversification, distributing the wealth among different countries and classes which will help in providing the best returns by strongly focusing on the attributes and characteristics of the asset and the returns that are likely to be earned from the same. Example: Investing in different moderate to high risk investments with a strong focus on investment in equity which will include foreign as well as domestic equity exposure which will range approximately 60 to 70 percent of the total portfolio along with 30 to 40 percent of investment in bonds and short term investments...
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