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Apple Financial Statement

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Income Statement It seems that FY 2013 was very tough period for computer Software and computer electronics industry. Astoundingly, Apple sales growth smashed to 9.20% in FY 2013 from 44.58% FY 2012 as compared to Google whose sales growth dropped to 19.23% in FY 2013. Due to slow growth in sales the revenue of apple drastically affected as sales/revenue is backbone of profit. However, in FY 13, the net profit of Apple drastically falls to $ 37bn from $ 41bn. Still, company sustain to keep its overall growth which is supported by its immense cash in hand. Apple was not able to control on its cost of goods sold, which is the main pinpoint in financial statement of FY 13. We can even go in more detail to analysis the Apple FS compared to Google through ratios: As we discussed earlier, Apple’s cost of sales was increased at high rate compared to sales growth which affected its profitability ratio compared to its previous year. Due to its COGS, Apple’s profitability went below the Google’s growth. For FY 2014, there will be optimistic growth rate of around 30.15% in Operating profit. Income from discontinued operations supports the net profit of Google. Hence, COGS was major chunk where Apple needs to look at it and increase on its sales because T Return on Shareholder’s equity went down tremendously, still better to …show more content…

For Apple, net profit and total assets turnover ratio were the key factors in pulling down the ROE. According to figure 4.1, in FY 2012, net profit and total assets turnover ratio of Apple were 26.67% and .89 respectively and it fell down to 21.60% and .83 in FY 2013 and its equity multiplier also increased which shows that assets were purchased through more debt. Hence, it becomes risky for a company if its equity multiplier increases at much faster pace than net profit and total assets turnover ratio. At the same time, ROE of its competitor was just affected by equity

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