APPLE INC Company Analysis Table of Contents Apple
APPLE INC. Company Analysis
Table of Contents Apple Revenues Chart Apple Horizontal Analysis Apple Vertical Analysis Apple Performance Ratios Invesment conclusion
Apples Earnings 2011 through 2013 Sales Revenue Apple Inc. $ 180, 000. 00 $ 160, 000. 00 $ 140, 000. 00 $ 120, 000. 00 $ 100, 000. 00 $ 80, 000. 00 $ 60, 000. 00 $ 40, 000. 00 $ 20, 000. 00 $September 24 2011 September 29 2012 September 28 2013
Apple Earnings 2011 through 2013 Revenues are increasing constantly albeit at a slower rate from 2012 to 2013. A further inspection of the companies financial statements reveals much more detail.
Apple Inc. Performance Ratios Performance ratios are comparisons of different values within the company that give a bigger picture of the liquidity, solvency, growth, and efficiency of a company regardless of its size. They will be referred to and explained in greater detail later in the presentation to provide further evidence of conclusions drawn from the vertical and horizontal analysis. Performance Ratios September 28 2013 working capital current acid test inventory turnover average inventory account rec. Turnover average account rec. days of sales outstanding days in inventory avg inventory fixed asset turnover total asset turnover debt ratio times interest earned equity multiplier gross profit margin operating profit margin net profit margin ROE ROA average total assets $ 29, 628 $ 19, 111 1. 68 1. 50 $ 1. 64 $ 1. 48 133. 785 122. 511 $ 1, 277. 50 0. 070 0. 077 $ 12, 016. 00 27. 98098414 25. 49039027 0. 012 0. 015 $ 1, 277. 50 1. 278 1. 322 0. 8257 0. 8889 0. 4031 0. 3286 1. 675448607 38% 29% 2% 30% $ 191, 532. 00 September 29 2012 1. 489417139 44% 35% 27% 35% $ 191, 532. 00
Apple Vertical Analysis of Balance Sheet cash and cash equivalents short term marketable securitites accounts receivable, less allowances of $99 amd 98$ respt. inventories deferred tax assets vendor non-trade receivables other current assets total current assets long term marketable securities property, plant and equipment, net goodwill acquired intangible assets, net other assets total assets vertical analysis September 28 2013 6. 9% 12. 7% 6. 3% 0. 9% 1. 7% 3. 6% 3. 3% 35. 4% 51. 3% 8. 0% 0. 8% 2. 0% 2. 5% 100. 0% % of total assets September 29 2012 significant 6. 1% significant 10. 4% - 6. 2% significant 0. 4% significant 1. 5% - 4. 4% - 3. 7% - 32. 7% - 52. 3% - 8. 8% significant 0. 6% - 2. 4% - 3. 1% - 100. 0%
Apple Vertical Analysis Significant changes in capital structure of Apple Inc. : Values represent percentage of total sales Apple was most efficient in collecting /13 /12 /11 income in 2012. It had a low cost of COGS 62% 56% 60% goods as well as a high income after operational costs were factored in. Operating Income 29% 35% 31% The company also managed to collect the most profit relative to its net sales. Net income 2% 27% 24%
Apple Horizontal Analysis Net Sales COGS Gross Margin Operating Expenses Research and Developement Selling, general and administrative Total operating expenses Operating Income Other Income/(expense), net Income before provision for income taxes Provision for income taxes Net income Earnings per share Basic Diluted Shares used in computing earnings per share Basic diluted Cash dividends declared per common share See full statement analysis %increase 2012 -2013 9% 21% -6% 32% 941% 14% -11% 121% -10% -7% -11% 2011 -2012 45% 36% 57% 39% -86% 34% 63% 26% 63% 69% 61% -10% -1% 330% 59% 60% 1% 1%
Apple Horizontal Analysis continued The most notable changes in absolute terms in Apple’s income statement are: Relatively consistent increase in production costs A significantly smaller increase in sales compared to production costs signaling that the company is taking on more cost while gaining less revenue See Performance ratios
Conclusion The company is healthy and is well suited for safe investment See full invesment report
- Slides: 10