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Essay about Apple Inc. Financial Analysis

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APPLE Inc. (AAPL) Accounting and Financial Profile [pic] Name Sachitanand Karnakote Choong Chee Lai Lei Qiu Alcides Santopietro Denisa Voicu September 2008 Contents Introduction 2 The company and its activities 2 Industry & Competition 2 Recommendation 3 Accounting choices and Quality of Earnings 4 Ratios analysis 6 Liquidity: 6 Solvency: 7 Profitability: 8 Market: 8 Relevant Disclosures 9 Risks 9 Analysis of Apple Inc. corporate strategy 10 Introduction 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…show more content…
| |Revenues |Gross Margin |Net Income |EBITDA |Total Assets | |Quick Ration (MRQ) |2.98 |1.02 |1.85 |2.12 |1.02 | |LT Dept to Equity (MRQ) |0.00 |17.22 |20.01 |16.87 |110.98 | Table 1.Apple; Hewlett- Packard - FINANCIAL STRENGTH, source: Reuters Liquidity: |Table 2 |Quick |Current Ratio|Accounts collection period of accounts |Average number of days inventory | | |Ratio | |receivable(days) |on hand | |2006 |1.76 |2.25 |23.7 |7.18 | In 2007, total assets have increased significantly by 48% from 2006. Current assets are 86.62% of total assets in 2007, up from 84.33% in 2006. From the trend over the last 5 years (2003-2007), Cash and Cash Equivalents (CCE) have grown strongly by 175% while total current assets have grown significantly by 273% in the same period. This growth in current assets is also reflected in Apple’s Quick Ratio and Current Ratio which have improved marginally in 2007 to 1.83 and 2.36 respectively. Apple`s ratios are favorable compared to its competitors, e.g.
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