Evaluation of the financial performance of Apple Inc. from 31 Dec 2006 to 31 Dec 2010
1.0 Terms of Reference:
This research report, addressed to the Board of Directors is a method of offering clear perception over the financial evolution of Apple Inc. (APPL) from 2006-10. APPL is a designer, manufacturer and marketer in a range of personal computers, media devices, mobile communication and portable digital music players. It also sells a range of related software, services and applications. Apple Inc. a total of 317 stores, from which 233 stores in United States and 84 stores internationally. The aim of this report is to analyse the company’s financial position regarding liquidity, efficiency and profitability.
2.0 Findings
The
…show more content…
Generally, there was a slight fall in the Apple’s Inventory Turnover. Thirdly, Average Age of Inventory is a measurement which estimates the average time it takes a company to sell a given product. A high Average Age of Inventory may display that a company is not effectively managing its inventory or it has a substantial quantity of goods which are proving difficult to sell. Between 2007 and 2010 it took Apple about 7 days to sell its stock. Finally, Debtor Turnover ratio indicates the average time that debtors take to pay a firm for their purchases. As presented in the table below, the pattern in debtor collection was so varied in the last five years. To conclude, it is evident on all four of the efficiency measures that Apple’s efficiency has clearly improved over the five-year period.
Ratio (formula) 2010 ($m) 2009 ($m) 2008 ($m) 2007 ($m) 2006 ($m)
Asset Turnover (Revenue/Total Assets) 65,067/41,67= 1.56 42,603/31,555= 1.35 32,479/34,690= 0.93 24,006/21,956= 1.09 19,315/14,509= 1.33
Inventory Turnover (Cost of Goods Sold/Inventor) 38,471/753= 51.09 times 25,017/482= 51.90 times 20,861/427.47= 48.80 times 15,535/307.98= 50.44 times 13,492/217.51= 62.03 times
Average Age of Inventory (365/Inventory Turnover) 365/51.09= 7.14 days 365/51.90= 7.03 days 365/48.80= 7.47 days
Refer to the financial reports of Apple, Inc. for the year ended September 25, 2010
Apple Incorporation is one of the largest organizations dealing into Information Technology. Apple has a host of products ranging from Laptops, Desktops, Mobile Phones and Multimedia Devices. The company has been extremely innovative in the field of multimedia and it owes it success to one of the greatest innovators, Steve Jobs. The company has always believed in innovation and that is the major reason why it has been so successful in the mobile phone segment. In recent years Apple is second only to Samsung in the Global Mobile Phone industry. However the operations have been largely based in the United States and in times of recession any organization needs to focus on economies of scale and thus focus on growth
This paper introduces six economic indicators that affect Apple Inc. and how they form part of the firm strategic plans and goals for the future of the firm. A definition this paper provides a definition of each economic indicator along with an explanation of how they affect the company’s domestic operations. In addition, the paper offers suggestions as of what the strategic response for each indicator should be.
The purpose of this report is to give an analysis of the major issues that Apple Inc is facing or may face in the future. It includes an overview of the company in terms of external and internal issues and later gives recommendations on how certain issues can be resolved or prevented. The report first gives a brief explanation on the methodology that has been used and is followed by the main findings from the research. The findings include a description of the issue as well as each issue being analyzed through one of the six perspectives. It later follows conclusions about Apple and leads to recommendations that can be followed up to fix certain issues.
This report was done within Strategic Management course it consists on choosing a well known company that the public in general is familiar with and using the Hambrick/Fredrickson five element model describes how the strategy of a company can be seen. For this analysis I chose Apple Inc. because I think that it meets the requirements. Concluding the report, there is a summary where the soundness and successfulness of the company are evaluated.
Apple Inc. was founded on April 1, 1976 in Cupertino, CA and was incorporated on January 3, 1977 (Apple, 2010). The company was founded by Steve Jobs and Steve Wozniak. Jobs also asked his former colleague from Atari, Ronald Wayne to join them in their startup. Wayne designed the first Apple logo. In early 1976 Jobs approached a local company store, The Byte Shop, said they would be interested in the machine, but only if it came completely assembled (Foljanty, 2010). The shop ordered 50 Apple I computers which sold for $666.66. The three owners would assemble the Apple Is at night in their garage still managed to deliver the ordered Apple Is in ten days. In April of 1976 Ron Wayne resigned from Apple Computer because he felt the financial
The figure above shows Apple Inc, the Market cap lead, and Dell, the Market cap last, corporations and their market share compared to the industry and the technology sector. As you can see above Apple Inc. is almost as close to the market cap for the Personal Computers industry. Although, it does have a smaller P/E ratio compared to the industry it still is the highest among the top leaders within the industry. Compared to the industry Apple’s does not have a debt to equity ratio, which is excellent. Apple’s net profit is also the highest within the top competitors and the industry. The price to free cash flow exceeds the industry as well as the technology sector.
This paper is a business situation analysis of Apple, Inc. Apple a market leader in the consumer computer industry with products including desktop, laptop, and handheld computers, as well phones, media streaming, and now watches. A multinational company, Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976. They specialize in designing, developing, and selling high-end computers, software, and other electronic devices. Because of Apple’s broad product portfolio they compete with many different companies in a range of markets. This analysis will be conducted using historical information, a SWOT analysis, and portions of Porter’s Five Forces Model to understand its business strategies, impact within markets, products and services offered, corporate leadership, and future.
Refer to the financial reports of Apple, Inc. for the year ended September 25, 2010
Our group decided to analyse the company Apple Inc., listed on Nasdaq Market as AAPL. The analysis was mainly based on the annual financial report of the company for the fiscal year ended on September 29th 2007. Apple Inc. is today one of the most
Our analysis of Apple Inc. will incorporate the general overview of the company and how it records it revenues. We will observe how they make an honest effort to be within compliance of all accounting standards according to the Financial Accounting Standards Board for recording and disclosure of its income. Apple’s leading competitor, Google Inc., will also be examined to see whether they are comparable to Apple and still within compliance of the Securities and Exchange Commission and FASB for revenue recognition. Apple takes on design, development and marketing of personal computers, portable digital music players, and media devices that exceed the reach of everyday needs. The company also
We chose to research Apple Incorporated, one of the most innovative companies of our generation. It is safe to say that nearly every one in the US and many foreign countries have used or at least heard of Apple products. We will be looking at the macroeconomic variables that impact Apple’s business as well as how the current developments in the industry have impacted Apple’s financials and we will also look at how Apple competes with other firms in the same industry.
The financial analysis expressed in this paper shows a comparison of two large firms in the communication and technology industry. Microsoft and Apple Inc. both deal in telecommunication gadgets and accessories within the United States and around the world. The paper focuses on the financial comparison of the two companies for two fiscal years of the year 2014 and 2015. A close analysis of the financial ratios is employed in bringing up the comparison. These rates are derived from the balance sheet and statement of income of both firms.
Established in 1976, Apple ignited the personal computer revolution with the Apple II and the Macintosh. Today, Apple designs, manufactures and markets personal computers, portable digital music players and mobile communication devices as well as related software, services, peripherals and network solutions. Apple sells its products worldwide through its online stores, retail stores, direct sales forces and third party distributors to its core customers—consumers,
This paper presents a case study of Apple Inc. Apple Inc. is a technology based corporation with emphasis on computer software and hardware (MAC and Apps), tablets (IPad), smart phones (IPhone), and mp3 plays, (ITouch). Apple Inc. has grown tremendously over the years and ever since 2001 has expanded its brand and retail stores to over 375 stores/outlets globally. The business has seventy two thousand eight hundred employees in thirty eight countries. Apple Inc. has truly become one of the most efficacious corporations within its field behind or competing with Microsoft and Google Inc.