Marketing Strategy For Apple Inc.

888 WordsApr 27, 20174 Pages
Apple Inc. is number one company in personal entertainment. It has been loyal in design and marketing strategy for over 33 years. Apple Inc. has been promoted itself as a worldwide for its innovation and market leading business operation. Whenever Apple Inc. introduces new products to the public; it always attracts the whole world to pay attention to it. A closer look on their finances could somewhat explained why Apple Inc. has a great influence to the business world. Apple was founded in 1976 by Steven Job, Steve Wozniak, and Ronald Wayne and focused on personal computer. Tim Cook is Apple’s current CEO and serves on its Board of Directors since August 2011. Apple Inc 's insider ownership is 0.19% in 2016. Apple Inc 's institutional…show more content…
Apple is on an aggressive debt financing by increase it debt year over year. However, Apple’s debt ratio is 56.27%, which indicates that it used a moderate degree of leverage and has a moderate degree of risk. In 2016, Apple weighted average cost of capital is 9.55%, and Apple 's return on invested capital is 28.68%. Apple generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. Apple’s 254% ROIC is the highest of all companies under coverage. Apple Inc. 's ROIC improved from 2014 to 2015 but then slightly deteriorated from 2015 to 2016 not reaching 2014 level. Apple generates very high returns across several metrics: ▪ Return on invested Capital: 33% ▪ Cash Return on Invested Capital: 33% ▪ Free Cash Flow Return on Invested Capital: 38% With these high returns, Apple can continue to build long-term value with just a little growth and a lot of value with higher growth, but Apple’s ability to grow is now in question. Apple’s dividend was reinstated a couple years ago. The current dividend is $2.28 per share respects to a yield of 1.6%. However, according to analysts, with all of cash and disposal, Apple could be able to pay more than $46 per share to investors, which is 32% of current share. That would bring a lot of cask back to the investors’ pockets. Apple’s earnings have declined because of the
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