Apple Computer's Loan

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.

The inventory ratio is 61.6 - FY2016 and 59.6 -FY2015, this is above the industry average of 43.5, this shows Apple inventory management process is operating efficiently and the company is turning inventory at a heathy rate. Apples Debt ratio is well below industry, for FY2016 is 25.2% and FY2015 is 19.2% vs industry average of 53.7%. This indicates Apple’s debt is at reasonable levels, the company is a low risk borrower and has adequate assets to fund its debt. ROA (return on assets) is trending upward and is higher than the industry average of 15.07. For FY2016 the ROA was 30.7% vs. 28.4%. for FY2015, this indicates Apples earnings are sufficient, interest cost is low due to below average

Because of the industries potential being so lucrative, the array of products that one can specialize in is there to be utilized. The only problem would be that the new entrant into this industry, due to the high demand of better products and the established companies expanding to satisfy this demand, would have to enter on a large scale of one product or many products.

Steve Wozniak and the late Steven Jobs founded a computer company in April 1, 1976, Apple Computers Inc. becomes a global leader in the sector of computer and mobile technology (Rawlinson, 2016). Today, the company specializes in a range of products including computer hardware and software, consumer electronics, and provides digital distribution. With over 120 online stores, as well as worldwide retail stores in different countries, Apple continues to portray commendable features of financial stability. The firm remains highly competitive relative to key rivals as Samsung, Dell, and Acer. The study analyzes the financial position of Apple in the last three years in terms of sustainable growth rate (SGR).

Both, horizontal analysis of Apple 's Income Statement and Balance Sheet indicates growth trend. However, despite the fact that Apple’s Retained Earnings had a slightly increase compared to 2013 base year (though still lower than base year), in company’s vertical analysis where the base is the total assets account, retained earnings got deteriorated decreasing from 50% to 31%. This trend is consistent with debt to asset ratio (0.40% in 2013, 0.51% in 2014 and 0.58% in 2015). A ratio greater than 1 indicates that a company may be putting itself at risk of not being able to pay back its debts (Accountingtools.com). As we can see, even though Apple’s debt to asset ratio has been growing, it is still lower than 1. Therefore, the corporation is not in dangerous position of not being able to pay its debt.

Apple Inc. is a global leader in the personal computer and mobile phone industry. The American company operates as a multinational firm, and has helped in adoption of new technology in the industry in the over 200 countries in which it operates. One of the reasons that has helped Apple Inc. (Fortune 500, 2015) to expand its business operations is its compliance with the financial regulations that are adopted for firms of this nature; that is, firms that operate in the international market. For this reason, the company adopts diverse methods to account for its assets, liabilities and shareholder equity. The first method adopted by the company is the balance sheet or the T-method is a two-sided method in which assets are shown on the left

The following paper aims at discussing the financial position of the American multinational corporation, Apple inc., which designs and markets consumer electronics, computers and personal computers mobile communication devices, and portable digital music and video players, as well as sells various related software, services, peripherals, and networking solutions. Apple Inc. together with subsidiaries sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative customers. As of

The industry in which Sun Microsystems is competing in is computer workstations for scientists, engineers, and commercial companies. Sun’s founder’s believed there was demand for a desktop computer workstation costing between $10,000 and $20,000 in a market niche, ignored by minicomputer makers such as, IBM, Data General, Dec, and Hewlett-Packard. Sun’s executives believed that they would only have a short time in this market before the other large companies decided to enter, because it was an exclusive market with a high entry barrier, but with opportunity for extensive profitability.

I believe this is an attractive industry because there is a possibility of making good profits due to buyer’s demand is daily increasing, there are low entry barriers, and technological advances are contributing to grow the industry. Although there is a high threat from potential

OVERVIEW Apple Inc. Strategy Facts Scope The focus of this project is the Mac portable personal computer line of Apple in the United States, a part of its Americas division. Apple is a publicly owned Fortune 100 company based in Cupertino, California. The firm operates primarily in the personal computer industry of the wider technology sector. Apple designs, produces, and sells a line of personal computers as well as mobile phones, portable digital media devices, software, and related peripherals and accessories. The firm sells internationally though a mix of direct sales, online

Industry is expected to grow from $20B in 2010 to $44B in 2014. Although demand was consistently strong and expected to grow 22% in 2012, margins were constantly squeezed due to pricing pressures and manufacturer sought to reduce costs wherever possible. Industry was sometimes prone to supply shortages, so fast, flexible manufacturing practices were critical in meeting customer demand.

Debt ratio (80% - industry 50))- Computron incurred an enormous amount of debt in 2007, partly due to their financing the new project. Debt was the primary source of income to fund this project and with such a high debt ratio present problems with creditors. Creditors usually desire a lower debt ratio just encase Computron goes into bankruptcy or fold. Their debt ratio is considerably higher than the industry and with Computron struggles with liquidity it can be a huge burden on the company's ability to pay interest payments.

Identify the opportunities that the industry has and might be subjected to in the future.

Currently, very few companies (read as large companies) are aware about these opportunities and it is these companies which are leveraging it to maximum extent. Thus, there is an enormous opportunity for different companies and especially companies which have niche product line ups.

On the other hand Apple has reported who has reported for the same quarter a net Operation cash of 37.53 billion, an investing cash of negative 40.42 billion, and a Financing cash of negative 1.43 billion. Apple is up 30.37% over the last year return