This section of my analysis includes descriptive statistics, charts, tables, correlation analysis, ration analysis and financial statement analysis during the period of which the data is collected. Moreover, I’ve tried to align the numerical data to the practical events and consequences that I’ve been studying during the period, which might help to make better evaluation. Descriptive Statistics and Financial Analysis From January 18-th to March 2-nd the stock has been growing constantly from 427USD to 544USD (average), and the difference between the mean and median for this period is relatively low which is a good indication.
The core of the Apple’s operation is the innovation based new products, but the newly introduced IPAD did not satisfy the customer’s and experts’ expectation. On the 13-th of February their stock price exceeded 500USD for the first time. Financial Statement Analysis Financial Statements analyzed for this assignment includes Unaudited Consolidated Condensed Balance Sheet, Statement of Cash Flow and Income Statement that are downloaded from http://investor. apple. com/financials. cfm. (APPENDIX II) In January 18, 2011, Apple announced financial results for its fiscal 2011 first quarter ended December 25, 2010.
The Company posted record revenue of $26. 74 billion and record net quarterly profit of $6 billion, or $6. 43 per diluted share. These results compare to revenue of $15. 68 billion and net quarterly profit of $3. 38 billion, or $3. 67 per diluted share, in the year-ago quarter. Gross margin was 38. 5 percent compared to 40. 9 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue. Combining the financial statement numbers with the real number of devices and laptops they sold, would give clear understanding of how they generate the revenue and what is the basis of the growth.
The Business plan on Financial Analysis
The competitive mechanism of the business world, lead companies to constantly evaluate their competitive advantages and compare them to their competitors. One of the strongest determinants of competitive advantages is operational efficiency. In simple words, companies that are not operating efficiently will soon be out of business. This paper discusses the performance of Blockbuster inc and ...
Apple sold 4. 13 million Macs during the quarter, a 23 percent unit increase over the year-ago quarter. The Company sold 16. 24 million iPhones in the quarter, representing 86 percent unit growth over the year-ago quarter. Apple sold 19. 45 million iPods during the quarter, representing a seven percent unit decline from the year-ago quarter. The Company also sold 7. 33 million iPads during the quarter. Their total liabilities is 3 times less than their total assets which indicates how healthy their operations is. Ratio Analysis
This section will include financial ratio analysis for Apple as well as provide forecasted financial statements for the upcoming ten years. The ratios will supply the overall profitability, liquidity (short-term solvency), and capital structure (long-term solvency) for Apple. The major purpose of using financial data in ratio form is making the results comparable across firms and over time by controlling for size. After computing the selected ratios, we will be able to compare Apple to its top competitors within the technology industry, and against the overall industry average.
Analysis of these ratios is important to numerous parties, but for our purposes, it will provide information not so easily derived or transparent in the financial statements. According to Appendix III, their inventory turn-over ration is 67. 4, which measures the inventory management efficiency of their business. The ratio is relatively high which may result in loss of sales due to inventory shortage which does not often happen for Apple Inc. But based on the circumstances related to the Foxxconn, inventory shortage may face the corporation. Risk Analysis
The Research paper on General Electric Medical Systems – Global Product Company Concept
The Global Product Company concept means ”to concentrate manufacturing – and ultimately other activities – wherever in the world it could be carried out to GE’s exacting standards most cost-effectively”. That means that the production is moving to countries where people are mostly underutilized (the example given in the case study tells about engineers from Eastern Europe, who cost only $1,5/h). ...
Looking at the data I’ve collected for this assignment, I’d definitely say that Apple stock is well work to purchase. But there were ups and downs until their stock finally reached 500 for the very first time. There was a lot to do with leadership that defines the path of the company which makes it distinguished from the others. For trading purposes, Apple stock would definitely increase to the certain point in the next couple of months but after that It might stabilize. But for investors Apple Inc. is still the best innovative IT company in the world.
The reason why stock rate might stabilize is that newly introduced IPAD and IPHONE didn’t satisfy customers’ and experts expectation for one step ahead innovation. So there is a clear doubt that how many people would replace their IPHONE 4 and IPAD 2 to the newly presented products with almost the same features. In addition their BETA rate is 1. 04 on average which is lower than Apple’s main competitors Samsung, Sony or Dell. And it clearly has better ratios and other financial facts compared to those. So Apple Inc’s stock is not risk free, but would be a good investment just for a certain period of time.
Conclusion The most interesting thing about Apple is how they are very innovative and early adapters. Apple is usually the first company to come out with a new product line before anyone else. This is very risky but it is one of their main characteristics. A large portion of Apple’s fate comes from cash flow and professional trading activity that are directly attached to their product sales. As long as they apply innovative technologies in their products and make sure their products satisfies customers’ demand they would still be on the top of the industry. Appendixes
