Financial Analysis of Apple Inc.

795 WordsJun 12, 20104 Pages
Financial Analysis (Submitted by) Abstract The following paper aims at discussing the financial position of the American multinational corporation, Apple inc., which designs and markets consumer electronics, computers and personal computers mobile communication devices, and portable digital music and video players, as well as sells various related software, services, peripherals, and networking solutions. Apple Inc. together with subsidiaries sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative customers. As of…show more content…
2009, 2008 & 2007 is determined through the following ratios: Liquidity Analysis | | | | | | S. No. | Detail | Working | 2009 | 2008 | 2007 | a. | Current Ratio | $36,265/$19,282 | 1.88 | 2.29 | 2.36 | b. | Quick ratio | $36265-$455/$19,282 | 1.86 | 2.26 | 2.32 | c. | Collection Period(in days) | $3361*365/$36,537 | 34 | 27 | 25 | d. | No. of day's sales in | $455*365/$23,397 | 7 | 9 | 8 | | ending inventory (in days) | | | | | The company is still highly liquid but this liquidity trend is in declining trend as current ratio 2.36 in 2007 is declined to 2.29 in 2008 and further declined to 1.88 in 2009. This declining trend is mainly due to increase in collection period of the sale and decrease in number of day’s sale in ending inventory as depicted above. Profitability Analysis: S. No. | Detail | Working | 2009 | 2008 | 2007 | a. | Gross Profit percentage | $13,140/$36,537 | 35.96% | 34.31% | 33.97% | b. | Operating income percentage | $7,658/$36,537 | 20.96% | 19.32% | 18.37% | c. | Return on Equity | $5,704/$27,832 | 20.49% | 22.99% | 24.06% | d. | Return on Assets | $5,704/$53,851 | 10.59% | 12.22% | 13.79% | e. | Cash return on assets | $10,159/$53,851 | 0.19 | 0.24 | 0.22 | f. | Quality of income | $10,159/$5,704 | 1.78% | 1.99% | 1.56% | There is an increasing trend in profit of the company over the last three years i.e. 2007 to 2009. The
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