Facts and Figures: Apple Inc

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.

For the fiscal year (FY) 2013 fourth quarter (Q4) Apple posted revenue of 37.5 billion and quarterly profits of 7.52 billion. Figure 1 shows financial data for three consecutive years from 2011-2013. See Appendix Figure 1 for financial details. Net sales for FY 2013 were $170,910 million an increase of $14,402 million from FY 2012 (Apple reports, 2013). Apple sold 33.8 million iPhones, 14.1 million iPads, and 4.9 million Macs during 2013 Q4. Apples App Stores’ sales exceeded $10 billion for FY 2013. App Store customers downloaded almost three billion apps in December 2013 making it the most successful month in App Store history (App store sales, 2013).

Apple (NASDAQ:AAPL) has emerged as the dominant global manufacturer and marketer of advanced personal computer, desktop and consumer electronics products including the iPod, iTouch and iPhone Series of MP3, tablet PC and smartphone products. Apple's innovative approach to new product development requires intensive coordination and confidentiality on the part of suppliers, as the company will often move quickly from market test to launch in a matter of weeks. The speed and agility Apple moves with is exceptional given its size and the highly competitive nature of the industries it competes in as well (Franke, Schreier, 2010). While best known for its personal computers, MP3 players, tablet PCs and smartphones, Apple is also a leading innovator in the area of systems development and operating systems as well (Apple Investor Relations, 2012).

Apple is a large multinational company and is the second largest information technology company. Apple has a revenue of $199.9 billion and a profit of $44.46 billion. Apple’s market capital, meaning the aggregate value of the company based on its current share price and the number of outstanding stocks is $741.8 billion. Apple is a public company meaning you can buy shares into the company, which are traded freely on a stock exchange and is now the largest publically listed company. It was founded by Steve Jobs, Steve Wozniak and Ronald Wayne on April 1,1976. Apple employs 92,600 people and has 437 stores located in fifteen different countries. An online store is also available in 39 countries to serve on

Based in Cupertino, California, Apple Inc. has become one of the titans of the technological industry in the 39 years since it was created in the spring of 1976. This growing company employees over 115,000 people and has 450 retail stores in 16 different countries. With an annual revenue of $233 billion in 2015 Apple Inc. is the most prosperous technological company in the world. Along with its many retail locations Apple also runs the online Apple Store making it a truly global brand. Over the years Apple has expanded their product line; in its infancy the company specialized in personal computers but more recently the main product line is phones and tablets. Apple’s other significant products include computer software and other consumer electronics (iPod, Apple Watch, and Apple computers).

Further, in 2012 net income increased to $41,733,000,000. This shows that while the industry was declining, Apple was able to stay strong and profitable.

This paper will analyze the financial position of Apple Inc. We will use horizontal and vertical analysis, eight financial ratios including rationale for the ratios chosen; and Altman Z-score to measure Apple’s overall profitability, liquidity and likelihood of bankruptcy. We will perform trend analysis to evaluate company’s performance over time, and use these trends as red flags or benchmarks for performance measurement.

Net sales during 2012 increased $48.3 billion or 45% compared to 2011. The Company has historically experienced higher net sales in its first fiscal quarter compared to other quarters in its fiscal year due in part to holiday seasonal demand. Actual and anticipated timing of new product introductions

Apple included in the top 25 company in forbes magazine The assessment is based on their Rankings for sales, profits, assets and market value. In 2012, Apple posted quarterly revenue of $36.0 billion and quarterly net profit of $8.2 billion, or $8.67 per diluted share. International sales accounted for 60 percent

I believe that Apple has been successful because their leaders are innovative and creative with the products they make. For example, Apple is constantly enhancing their cell phones – iPhones – capabilities and designs to retain their customer 's base and attract new customers. Apple 's press release for 2015 announced that 2015 was Apple 's most successful year (Apple, 2016). The growth is mainly due to iPhones, Apple Watch, and Mac sales. Even though 2016 is not over yet, Apple has provided financial information. The company 's revenue is around $77.5 billion; gross margin is nearly 40 percent; and their operating expenses are around $6.4 billion (Apple, 2016). According to Ycharts (2016), Apple 's return on assets for June 2016, was reported at 16.28%.

In the last decade, Apple Inc. has become one of the utmost successful and wealthiest companies in the world. With the aid of other companies in the field of technology, Apple has achieved strides in the area of innovation that is nearly unparalleled in this modern age. How has the success of this once computer company turned into a multinational technology company, effected its workers, customers, and the social-economy that we live in? Slowly, Apple Inc. has become one of the largest companies in the world with their products being used everyday by millions of people and a major impact in the social economy and quality pay and benefits for their employees, however, with below average treatment in particular cases.

In the last quarter of 2013, Apple has managed to sell 14.1 million ipads, 33.8 million iphones and approximately 4.6 million macs. All these new gadgets helped Apple to generate an enormous amount of $37.5 billion in revenue resulting in a huge profit of $7.5 billion. The full year results for Apple showed that they secured overall revenue of $171

The company started off as “Apple Computer,” best known for its Macintosh personal computers (PCs) in the 1980’s and 1990’s. Despite a strong brand, rapid growth, and high profits in the late 1980s, Apple almost went bankrupt in 1996 (Kim & Yoffie, 2010, p.1). This can be explained that Apple has become larger and more significant than other competitors put together in 1980. Because Apple failed to innovate in 1996, the company almost went bankruptcy but eventually Steve Jobs took Apple from bad situation to the company that can make billions of dollars through promoted itself as a hip alternative to other computer brands. Apple highlighted its computers as the world’s “greenest lineup of notebooks” that were energy efficient and used recyclable materials. The goal was to differentiate the Macintosh amid intense competition in the PC industry (Kim & Yoffie, p.4).

Financially, Apple is a booming company in the computer technology realm, and is supported by many people across the world.   Since 2005 the net income has, as reported earlier in the SWOT analysis, increased by 364% to a net income of 4, 834 million dollars.

I undersigned ………………………a student of T.Y.B.B.A., here by declare that the project work presented in this report is my own work and has been carried out under the supervision of prof. Kuldeep Jobanputra of R.P.Bhalodia College, Rajkot. This work has not been previously report submitted to any other university for any other examination.