Essay on Apple Inc Financial Trend Analysis
Apple Inc is a global company dealing with computer software, computers and online services. The company is based in United States of America with its headquarters being on California. The company has been in operation since 1976. It founders are Steve, Woznak and Rayne. Their product includes Mac computers, i phone, I pad, iPod, and I work. In terms of revenue base they are world second largest in the information technology industry. In 2014 the company generated revenue worth $182 billion. Its main competitor is the Samsung electronics.
Trend analysis is a technique which uses a company past financial trends to predict the future performance of the firm. It relies on the data figures which are considered to be more consistent.In determining apple Inc financial trends this paper will look into the sales, cost of sales overheads, cash flows and net profit. It is assumed that the sales will increase by 5%
Items year 2010 2011 2012 2013 2014 Projected 2015
Sales 65.07B 108.6B 155.97B 170.87B 182.35B 191.4675B
Cost of sales 39.5B 64.08B 87.92B 107.24B 111.96B 117.558B cash flows 16.59B 33.27B 42.56B 45.5B 50.14B 52.647 net profit 14.01B 25.92B 41.73B 37.04B 39.51B 41.4855B
The sales are estimated to increase by 5% hence they will reach 191.4675B in the year 2015. The cost of sales will increase to 117.55B, cash flows will rise to 52.647B and the net profit is estimated to be 41.4855B using the percentage on…