Apple Inc Income Statement Analysis

Superior Essays
Group Assignment Four Corporate Financial Statements
Apple Inc.
Leading business through “reportable operating segments… [in] the Americas, Europe, Greater China, Japan, and [parts] of Asia,” (Apple Inc. 2015, p. 2) through highly intelligent, premium technological advances such as wearables, 3D Touch, the iPad, iOS, and more, Apple brand products are on the bleeding edge of innovation, supporting modern corporations, start-ups, professionals, and individuals alike. A corporation amassing, “approximately 110,000 full-time equivalent employees,” and nearly 65% of total net sales during the 2015 fiscal year taking place internationally, the household brand holds interest for many investors (Apple Inc., 2015, p. 6-7). Recent legal debates with
…show more content…
“The income statement is sometimes referred to as the profit and loss statement (P&L), statement of operations, or statement of income,” (Averkamp, n.d.). An income statement shows the profitability of a company over a specific amount of time. The time frame used is chosen by the company and varies from business to business. The gross profit, which is net sales minus the cost of goods sold for Apple Inc. has increased from $64,304,000 in 2013 to $93,626,000 in 2015 (“AAPL Income,” 2016). Net income is the concluding balance on the income statement. The net income is a company’s total profit or earnings for that fiscal year. In 2013, Apple Inc. had a net income of $37,037,000 which increased to $39,510,000 in 2014 (“AAPL Income,” 2016). This is a small increase compared to the increase between 2014 and 2015. With a $13,884,000 difference between 2014 and 2015, Apple Inc. had a net income of $53,394,000 in 2015 (“AAPL Income,” 2016). The income statement shows us how fast Apple Inc.’s profits are growing over a small amount of …show more content…
Positive cash flow means you are bringing in more cash than is flowing out and with a negative cash flow, you have more cash flowing out than in. The cash flow statement is a key indicator in determining the financial health of a company. “Companies can remain in business without turning a profit but they won’t last for long with a negative cash flow,” (Wagner, 2005, p. 17).
We’ve all heard the phrase in business, “cash is king.” Having cash on hand affords companies better stability in volatile times as well as providing the necessary means for expansion vs. borrowing. More important than having cash on hand is having cash flow, “… cash flow is distinct from cash position. Having cash on hand is critical, but cash flow indicates an ongoing ability to generate and use cash,” (Kokemuller,

Related Documents

  • Improved Essays

    The revenue for all three year had big difference; for example, 2012 to 2013 had $639,000 decrease of revenue, 2013 through 2014 we see an increase in revenue of $2,544,000 (Yahoo Finance, 2016). General Electric revenue from 2012,…

    • 710 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    These ratios in recent years are high, which means that Google is doing well in earning their profitability, and it also has more profits to distribute to its stockholders. However, this ratio is not so accurate and flexible in comparing the operating growth among different companies because that ratio also depends on the numbers of outstanding shares. For example, Google and Microsoft have almost the same amount of net income in 2015, which is approximate $16 billion. On the other hand, Microsoft’s earning per share ratio in 2015 is only $2.1, which is much lower than Google’s ($22.84). In addition, the company also uses the return on assets ratios in order to evaluate a company’s profitability.…

    • 982 Words
    • 4 Pages
    Great Essays
  • Great Essays

    Swot Analysis Of Mlb

    • 966 Words
    • 4 Pages

    It now has a dividend yield of 2.61%, which is better than the industry average of 2.05%. As a result of HRB’s strong financial position, we expect the company to continue to enhancing its shareholders’ value. Financial Analysis HRB has two distinct sections of their business that drives the majority of their revenues. These business drivers include their retail division and the digital tax business that allows customers to self-file taxes electronically online. In fiscal year 2015, HRB reported revenue totaling $3.02 billion, and net earnings totaled $485.9 million.…

    • 966 Words
    • 4 Pages
    Great Essays
  • Improved Essays

    Verizon Ratio Analysis

    • 1045 Words
    • 4 Pages

    However, if we compared it to other company in the same industry with a profit margin of 16%, that 25% doesn’t seem as small. Same can be said with Verizon, their profit margin came to be 14%. The telecommunication industry average is at 11%. This indicated that Verizon is doing well, their profit margin grew steadily from 2013-2015. To further support our claims,…

    • 1045 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Market capitalization represents the market view of a stock value and is used in determining stock price. Currently, Apple Inc.’s market capitalization is $657.41 billion, which far exceeds Hewlett-Packard Co.’s market capitalization that totaled $50.48 billion, and also exceeded Google’s parent company’s market capitalization of $497.01 billion. Apple’s market capitalization has been on a steady climb for the last 5 years, meaning shares outstanding have been increasing along with the price of those shares. February 2015 recorded the company’s highest level of market capitalization at $774.69 billion and consistently exceeds benchmarks for the company (“Apple Inc.…

    • 1739 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    went from $2,236million in 2013 to $3,228million in 2014 resulting in a 44% increase. Aside from the issuance of note in 2014, the company entered into a capital lease obligation in 2013. The capital lease has short and long-term obligations of $10million and $236million respectively. In 2014, there was a change to the articles of incorporation for Google Inc. The change allowed for the issuance of 3 billion Class C capital stock and an increase in the number of authorized class A common stock (from 6 billion to 9 billion valued at $0.001).…

    • 1606 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    Looking at their rates over the last few years, I would suggest adding Apple’s bonds to an investor’s portfolio. By using Apple’s capitalization ratio, we can determine that the company is a good investment. Although they took on $64 billion in long and short term debt they are a solid company. When we divide the debt by the stockholders’ equity we can determine that Apple has a 31% capitalization ratio, which is up over 10% from the previous…

    • 756 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Avis: Financial Case Study

    • 3255 Words
    • 14 Pages

    Avis company have a 13.93 times accounts receivable turn over a year. Asset Turnover Asset turnover ratio is an important ratio because its measure s the company ability to generate sales from its assets by comparing net sales with average total assets. The higher the amount in the assets turnover, the efficiency a company uses all of its assets to generate sales. In 2012, Avis Company had an assets turnover of 0.52, had a decreased in 2013 to 0.50, and increased in 2014 to 0.51. The company assets turnover is decreased which means for every $1.00 invested in assets, the company only generates 51 cents in 2014.…

    • 3255 Words
    • 14 Pages
    Great Essays
  • Superior Essays

    Both, money supply and inflation - with reasonable rates, are the cornerstone for automotive industry’s growth and productivity and vice versa. The strength of the economy’s recovery has been seen in the number of job creation in the last three years. According to the Economic Report of the President “The pace of total job growth rose to 260,000 a month in 2014, up from 199,000 a month in 2013, as shown in Figure 1‑2. As recently as 2013, most forecasters expected that the unemployment rate would not fall to 5.6 percent until after 2017. The unemployment rate declined 1.1 percentage points during the 12 months of 2014, or almost an average of 0.1 percentage point a month, falling to 5.6 percent by year…

    • 1102 Words
    • 4 Pages
    Superior Essays
  • Decent Essays

    The highest cash conversion cycle of 55 days was generated in 2103. Consequently, Starbucks needs to concentrate on reducing their cash conversion cycle to attain higher efficiency. In 2013, Starbucks had 13 days in sales outstanding, 67 days in inventory, and a 25-day average payment period resulting in a cash conversion cycle of 55 days. In 2014, Starbucks had 13 days in sales outstanding, 59 days in inventory, and a 27-day average payment period resulting in a cash conversion cycle of 45 days. Starbucks’s cash conversion cycle was 10 days faster in 2014 than it was in 2013 meaning the company had to finance 10 fewer days of net working capital in 2014.…

    • 839 Words
    • 4 Pages
    Decent Essays