Session Long Project Report—Module 1

Session Long Project Report—Module 1

Company Overview

Apple Inc. is involved in the designing, manufacturing and marketing activities of media and mobile communication devices, portable digital music players and personal computers. The company also sells various related softwares, peripherals, services, networking solutions, third party digital applications and content. Apple retail stores sell its products world over along with direct sales force, online stores and third party wholesalers, mobile network carriers, value added resellers and retailers (Apple Web-site, 2014). Since its initial offering that was well-received by the investors and media, the company has grown and evolved as the leading company in the industry. As of March 2013, Apple Inc. has been ranked as the world's largest company in terms of market capitalization (PwC , 2014).

Financial Information

Table 1 below shows the current price of Apple's stock and the key financial information related to the company. The company's stock is trading at a price of $519.01 as at April 17, 2014. Sales of the company has been continuously increasing over the three year period however, the net income has decreased in 2013 as compared to 2012. An increasing trend is also seen in the assets, liabilities and equity of the company over the three years from 2011 to 2013. Further, being a for-profit organization, one of its main goals is to increase the wealth of the shareholders. The company did not paid any cash dividends to its common shareholders in the year 2011, however a cash dividend of $2.65 was paid in 2012 and the cash dividend increased in 2013 to $11.4 (Yahoo.finance).

Table 1: Apple Inc.'s Key Financial Information

 

2011

2012

2013

Current stock price

$519.01

Company sales/revenue ($ millions)

108249

156508

170910

Net Income ($ millions)

25922

41733

37037

Total Assets ($ millions)

116371

176064

207000

Total Liabilities ($ millions)

39756

57854

83451

Owner's Equity ($ millions)

76615

118210

123549

Cash dividends declared per common share

$ 0

$ 2.65

$11.40 ...