FINANCIAL ANALYSIS

Apple Inc Financial Analysis

Apple Inc Financial Analysis

Introduction

Apple Inc is one of the most well known and recognized companies presently operating in the world. The company has been the innovator of several ground breaking and highly successful products such as the Macintosh Computers, the IPod and the IPad. Apple Inc's products are available globally and the company enjoys a very strong brand recognition and equity. Apple Inc's current brand value is estimated to be at US $76 Billion, an increase of 129% from a value of US $33 Billion just last year (Interbrand, 2012). Currently, Apple Inc employs approximately 80,000 employees in 14 different countries. Apple Inc's former CEO, Steve Jobs, was one of the most influential and recognized personalities in the entire electronics industry.

Apple Inc Financial History

Apple Inc, listed on NASDAQ with the ticker symbol of AAPL, went public with an Initial Public Offering (IPO) price of $22 per share on December 12, 1980. During the period between 1985 and 1997, Apple Inc suffered from a financial decline. The company was suffering losses and the share price had fallen considerably to a value under $2 per share (Yahoo Finance, 2012). During the 1990s, the share price of Apple Inc hovered between $5 and $10. However, in 1998, Apple Inc developed the IMac that allowed the company to return to its previous profitability levels. During these profitable times, the share price of Apple Inc started to rise (Yahoo Finance, 2012) and reached a high at $135 per share during April of 2000. During June of 2000, Apple went through with a 2:1 stock split. With the development of the IPod and the ITunes music store, Apple Inc acquired widespread success allowing its stock to reach $80 after the stock split. With the development of the IPad, Apple reached its peak of profitability. By 2010, Apple's stock had reached a massive $300. During 2011, because of the worldwide success of its products, Apple Inc had amassed revenues exceeding $108 Billion. After the successful launch of it IPad 3 and the unveiling of news regarding the IPhone 5, Apple's share price had reached an all time high of $705, making the company worth about US $650 Billion in its market capitalization (Yahoo Finance, 2012). It was during 2011 that Apple Inc surpassed Exxon Mobil to become the world's largest company, and it was during August 2012 that Apple's capitalization surpassed Microsoft's capitalization in the 1999 internet boom phase to become the largest US Company of all time. Because of Apple's recent success, the company has amassed a massive cash reserve of about US $117 Billion during 2012 (Biggs, 2012).

Discussion

Apple's 3 Year Annual Report Analysis

As mentioned earlier, Apple Inc is one of the most profitable and financially sound companies currently operating in the world. During the year 2010, Apple's revenues were US $65 Billion (Apple Inc, 2010). In 2011 closing period, Apple's total revenue had increased by over 66% to a massive US $108 billion (Apple Inc, ...