FINANCIAL ANALYSIS

Financial analysis of Apple Inc

Table of Contents

Introduction3

Business Strategy Analysis3

Chairman Reports4

Market Analysis4

Competition between Firms5

Performance of the business over the last five year7

Balance Sheet7

Income Statement10

Cash Flow Statement12

Financial Statement Ratios13

Market Value Ratios16

Performance compared with competitors17

Possible Future performance, Problems or issues19

Projections20

Problems or issues21

Conclusion and Recommendation22

Financial Analysis of Apple Inc

Introduction 

Apple Computer Inc is one of the major manufacturers of computers and portable music players with headquarters in California. Apple not only designs, manufacture, but also sell personal computer systems, Tablet PC's, portable music players, smart phones and different software's and networking hardware's to a variety of consumers (Linzmayer , 2004, pp 45-57). Its products are sold in more than 120 countries and Include personal computers, mp3 players, cell phones, software, and networking products. Steven Jobs and Stephen Wozniak formulated Apple in 1976; initially they manufactured and sold a computer circuit board, which was designed in Jobs' garage in California. Under the leadership of charismatic Steve Jobs and the creative inventor Wozniak, they finally formed the Apple Inc in 1977 (Imbimbo, 2009. pp 44-51).

Business Strategy Analysis

Apple was founded in the first of April 1976 at the hands of Steve Jobs and Steve Wozniak and Ronald Wayne for the sale of personal computers called "Apple-1". These computers are sold as pallets or (Motherboard): central processing unit (CPU) and memory for random access (RAM) chips and video - script core, these parts of course were less than which we consider to be personal computer in the present day. Apple runs different businesses and is engaged in offering several products and services like the computer designs, servers, network solutions and software and services. The company is running business in USA mainly having the headquarters in different cities like California and Cupertino. The company is currently having 34,300 employees and the financial results show that the revenue of the company has increased by 14.4% from 2008 to 2009. The main reason behind a huge increase in the revenue is the increased sales of iPhone handsets and applications from the iTunes Store. Apple is selling its products to almost whole world and almost all the country's can avail the products of Apple Inc. through several sources that include the online delivery, sales through the retailers and etc (Apple, 2010).

Chairman Reports

According to the company's 8K filings with the SEC, Apple announced financial results for its fiscal 2011 third quarter ended June 25, 2011. The Company posted record quarterly revenue of $28.57 billion and record quarterly net profit of $7.31 billion, or $7.79 per diluted share. These results compare to revenue of $15.70 billion and net quarterly profit of $3.25 billion, or $3.51 per diluted share, in the year-ago quarter. Gross margin was 41.7 percent compared to 39.1 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter's revenue.

The Company sold 20.34 million iPhones in the quarter, representing 142 percent unit growth over the year-ago quarter. Apple sold 9.25 million iPads during the quarter, a 183 percent unit increase over the year-ago ...