Apple 's Finance And Operations

Apple Inc. is part of the electronic equipment industry that designs, manufactures, and markets mobile communications. Apple also creates and sells media devices, personal computers, and portable digital music players worldwide. This company was founded in 1977 and serves various customers. Apple’s top three competitors are Blackberry Limited, Google Inc., and Hewlett-Packard Company (Yahoo Finance, 2014). The purpose of this paper is to discuss the financial health of Apple by using horizontal analysis, vertical analysis, ratio analysis, and Altman’s z-score for the year 2011, 2012, 2013.

Since 1976 Apple’s innovation has helped the company become a market leader in computer and mobile electronics. Through this time the company has faced a number of challenges either it be an internal power struggles or criticism from the media for certain aspects of their business model. This report covers five different issues that the company is facing or may face in the future.

a) Apple Inc uses multi-step income statement format. It organizes its operating section by using functional expense classification.

Apple Inc. is perhaps one of the most innovative technology companies to emerge since its establishment, in1976. The founders Steve Jobs and Steve Wozniak gave the world products like the Macintosh computer, iPod, and most recently, the iPhone. Apple is also successful in software manufacturing such as Apple OS for computers, media softwares like iTunes and iOS for mobile devices. To date, Apple employs 115,000 employees, 453 retail outlets in 16 countries and a revenue of $182 billion. Thus, Apple’s creative, and innovative product line has had its stock price to hit high every year.

Based on the solvency ratios that have been calculated, it can be realized that Apple has a stable, normal and acceptable position in terms of its allocation of debts, as compared with the proportions of its shareholders’ equity. With debt ratios at .5891 for FY 2015 and

This paper will analyze the financial position of Apple Inc. We will use horizontal and vertical analysis, eight financial ratios including rationale for the ratios chosen; and Altman Z-score to measure Apple’s overall profitability, liquidity and likelihood of bankruptcy. We will perform trend analysis to evaluate company’s performance over time, and use these trends as red flags or benchmarks for performance measurement.

Apple had nearly $137 billion of cash at the end of Dec 2012. Over the past few years, the Company had been highly successful with the launch of the iPhone 3G in 2008, and which was followed by the launch of iPad in 2010. The Company enjoyed high profitability, and was able to keep its costs at a minimum. The gross margin on the iPhone was between 49% and 58% from October 2010 to March 2012, and the gross margin on the iPad was between 23% and 32% in the same time period. Apple’s capital structure included no debt; hence, there was no outflow of cash for making interest payments.

Apple Inc. has been stagnant over the past two years despite successful profits, a fast-growing dividend, and over $130 billion worth of share repurchases (Wall Street Journal, 2016). The staple product, the Apple iPhone, accounts for over two thirds of Apple 's revenue and profits and

Apple Inc. Is a multinational manufacturer that 's centered in the USA and headquartered in Apple California located in California, U.S. Apple was once centered in April 1976 with the aid of Steve Jobs and Steve Wozniak and was built-in in January 1977. The organization designs and later sells purchaser electronics, personal computers and computing device application. The Macintosh variety of character desktops, iPod, iPhone and the iPad are among the Apple’s satisfactory identified merchandise. Normally probably the most program furnished with the aid of utilizing the brand entails ultimate lower studio that could be a monitor and video construction suite, Aperture which is legit pix utility, iTunes media browser, Mac Os X working process and common sense studio which is a music production suite (Apple, 2012). As of May just 2012, Apple (2012) suggests that the organization has over 300 stores located in more than ten international locations in additional to the online retailer. Banton (2011) describes Apple has been among the finest technological organizations in the world so far as firms’ traded in the world via market capitalization are worried. In keeping with Banton (2011), some analysts have even immediate that Apple has more cash than the U.S. Government. Apple (2012) states that, the manufacturer has greater than 60,000 staff employed on everlasting foundation and a few 2,800 temporally staff in world. Whatever the success that the manufacturer has

Table 1 reports the selected financial data concerning business operation, and related growth rates from the annual report of Apple Inc. (2015). Notably, net sales rose 28% during 2015, with increase of net sales $50.9 billion. The growth of net sales over 2014-2015 was the second biggest rate during the recent five years. Note that the sales of Apple are determined by launching of new products

In the last quarter the Revenue (in billion) of three of Apple products (Ipod, Mac and iPhone) is of 28.23 and the cost of Revenue is 16.89. The gross profit is 11.38, which leave us between the selling, administration and expenses, also the department of research and development a total operating expense 19.56. so after taxes the income available Is 6.62 with this information investor can identify how Apple has been growing despite the death of their executive chief.

This essay is intended to provide a financial breakdown and evaluation of Apple Inc. from the fiscal year 2008 to 2009. The performance assessment is based on the ratio calculated by the data from balance sheet, cash flow statement and income statement of Apple Inc. This essay contains three parts. The first part is a historical record and position in the market of Apple Inc. The second part is the assessment of Apple 's performance and the key drivers for Apple 's performance. Finally, a conclusion and recommendation for Apple Inc.

The company was founded back in April of 1976, their founders were Steve Jobs, Steve Wozniak and Ronald Wayne. Today the company’s headquarters is located in California. As the company stands today it is one of the world’s largest technology company. With all the products and services that the company provides, Apple has a vast target market. This attracts a ton of attention to the company which in return has provided plenty of products to their consumers, for example, iPhones, MacBook’s, Watches, Apple Music, Beats, iMacs and many more. The company really took off after Apple choose to take part of the cell phone industry in 2007, from there on Apple has done a fantastic job with integrating all their products together. This allows the consumer to enjoy the company’s products on multiple different platforms. Currently Apples biggest products are the iPhone, MacBook’s, iPads, and iMacs. In over the past year the company’s stock prices has risen from $113 a share to currently sitting at $167.37 a share, and over the course of the past 5 years their stock price was at $72.82. Their most recent stock split was in June of 2014 Apple had a 7-1 split.

Few companies in the world today achieve the success Apple has earned over the last couple of decades. Apple was founded by co-founders Steve Jobs and Steve Wozniak in 1976 in Cupertino, California, in which both men dropped out of Reed College and UC Berkeley respectively. The year prior, the two men had teamed up to create 50-100 of the first Apple computers. Since that time, Apple has risen to become one of the most innovative and successful companies in the world today. In terms of profit, Apple, Inc. enjoys large profits every year. In addition to that, in January of 2015, it was reported by

The iconic American technological company Apple is worth a staggering $498 billion (CNN Money, 2016) and has the biggest customer loyalty base. This once garage operating company start-up is now one of the largest multi national companies taking not only the millennial by storm but also our baby boomers. People of all ages are enjoying the innovation and originality of Apple products. Apple has a growth rate of 44% annually (CSI Markets, 2015) and makes up 35% of the global technological market (Edwards 2014). Although Apple may operate out of California they have a vast presence overseas, especially in Eastern Countries. China is where Apple manufactures all of their crazed products annually. 71% of smart phones are manufactured in China (Ibisworld 2016). If Apple were to move manufacturing of their products to the US it would cost the company $4.2 Billon US (Forbes, 2013). Many multinational companies call China home to manufacturing due to the low cost of in capital, undervalued currency, energy and tax incentives.