Apple Financial Analysis



Table Of Content

INTRODUCTION1

DISCUSSION1

Over view of the Apple Inc1

Industry Overview2

Financial Analysis of Apple Inc 2009 - 20114

Horizontal analysis4

Income Statement4

Balance Sheet5

Vertical analysis6

Income Statement6

Balance Sheet7

Impact of International Trade on Apple Inc7

Risks of Apple Inc International Trade8

Ratios Analysis of Apple Inc9

Profitability Ratios9

Liquidity Ratios9

Debt Management10

Asset management10

Investor Ratios11

Future Business Opportunities11

Dividend yield Of Apple Inc12

The Price-Earnings Ratio13

Cash flow analysis14

CONCLUSION14

REFERENCES16

APPENDIX18

Apple Financial Analysis

Introduction

The analysis of financial statements is highly essential for evaluating the overall performance of the company and ultimately, better investment decisions can be possible. There are various financial tools that are available for making an appropriate analysis of the financial statements. Financial tool which highly used in assessing the financial statements are horizontal, vertical and ratio analysis which not only helps in the assessment of performance of a company, but also allows for better comparison of the performance of one company to that of another. This paper will focus on the U.S. one of the most known and successful Software, hardware, electronic and Digital Distribution Company across the world.

Discussion

Over view of the Apple Inc

Apple Computers is considered to be the creator of the personal computer and much more. One relegated to a niche, hobbyist computer manufacturer, Apple Computers has matured into a media powerhouse with its long tentacles in every aspect of the business. Apple Computers plays a major role in the consumption (iPod and Mac) and distribution (iTunes Store) of music, once thought to be the exclusive domain of giant record tables.

Since January 2010, the company operates through its 284 retail stores in ten countries, and through an online store selling both hardware and software. Among the products of hardware known to the company has teams Macintosh, the iPod, the iPhone and the iPad. Among the software Apple deal with operating system Mac OS X, the operating system IOS, the media browser iTunes, the suite iLife (multimedia and creativity software), the suite iWork (productivity software), Final Cut Studio (a suite of professional video editing), Logic Studio (audio editing software on audio tracks) Xsan (software for exchanging data between servers), Aperture (RAW image editing software), and the web browser Safari (Apple Inc, 2012).

Industry Overview

Apple Inc is from Technology Sector and is from Personal Computers Industry. The Computer Manufacturing industry is being rapidly supplanted by imports, particularly from China. While import penetration in this industry stood at 50.7% in 2007, imports are expected to satisfy an estimated 68.6% of domestic demand in 2012. As a result of off shoring by US-based companies and increased competition from international firms, domestic manufacturing activity has declined. Over the five years to 2012, industry revenue is expected to fall at an average annual rate of 5.1% to $36.8 billion, including a drop of 11.1% in 2012 alone (Stock Research, Analyst Summary Apple Inc, 2012).

The industry's woes cannot be blamed on a lack of demand. In fact, the share of US households that owns at least one computer increased by 7.5 percentage points from 2007 to 2012. While demand has grown, fierce competition and widespread product homogeneity (the result ...