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Essay on Apple Incorporated: Financial Analysis

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WRITING ASSIGNMENT: FINANCIAL ANALYSIS

FIN 534 – Financial Management
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Abstract
The focus of this analysis is to perform a thorough examination of Apple, Inc.’s financial performance over the past three years and its growing success since being founded in 1976.
Apple’s main focus is on design, manufacturing and marketing of personal computers, peripherals, computer related software, digital music player and related accessories, and is maintained by. The portfolio of company is structured around Mac computing systems, iPods, iPhones and servers. Apple has made drastic financial strides over the past few years, which can be easily illustrated through this analysis. The company recorded revenue over …show more content…

These cash's vault have permitted the Apple Company to start an achievement spree, comprising online company of music Lala Media in December in the year 2009, pursued a month after by the purchase of mobile advertising player.

Financial Ratios A firm’s profitability ratios can be analyzed to rate the ability of the company to generate profit as a comparison to its expenditures and costs. Apple has been able to continue increasing their profitability year after year as exhibited in the ratios below.

Apple Inc. | | | | | Financial Statement Analysis | 2011 | 2010 | 2009 | | | | | Profitability Ratios | | | | Return on capital employed (ROCE) | 134.53 | 106.04 | 93.43 | Operating profit margin | 31.22 | 28.19 | 27.36 | Gross profit margin | 40.48 | 39.38 | 40.14 | | | | | Efficiency Ratios | | | | Asset Turnover | 4.31 Times | 3.76 Times | 3.41 Times | Stock turnover period | 1.88 days | 2.94 days | 2.95 days | Sales revenue per employee | 1.79 | 1.42 | 1.25 | | | | | Liquidity Ratios | | | | Current ratio | 1.61 | 2.01 | 2.74 | Acid test ratio | 1.58 | 1.96 | 2.70 | Working Capital | 17018.00 | 20956.00 | 20049.00 | | | | | Investment Ratios | | | | Dividend yield | 12.86 | 16.92 | 16.92 | EPS | 29.70 | 5.00 | 5.00 | P/E ratio | 11.30 | 64.51 | 42.15 | | | | | Cash Flow ratios | | | | Cash Flow to maturing obligations | 74.53 |

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