Apple Incorporated: Financial Analysis Essay

3700 Words Mar 16th, 2013 15 Pages

FIN 534 – Financial Management
Student Name
Instructor Name

The focus of this analysis is to perform a thorough examination of Apple, Inc.’s financial performance over the past three years and its growing success since being founded in 1976.
Apple’s main focus is on design, manufacturing and marketing of personal computers, peripherals, computer related software, digital music player and related accessories, and is maintained by. The portfolio of company is structured around Mac computing systems, iPods, iPhones and servers. Apple has made drastic financial strides over the past few years, which can be easily illustrated through this analysis. The company recorded revenue over
…show more content…
The cost of goods sold increased proportionally to the increase in sales having little effect on the increased profit margin. Unit sales Apple portable products accounted for sixty two percent of their shipments of personal computer in 2011 and 2010 both. Through examining a company’s liquidity ratio it is possible to get a clear picture of their ability of turning current assets into cash. “Liquidity ratios give an indication of a company’s ability to retire short-term debts as they come due, and include the current ratio, and quick ratio” (Dennis, 2006). Below are Apple’s last three fiscal years of liquidity ratios which have been calculated from their annual financial statements.
As in the cases of all of Apple’s financial information they continue to move in an upward trend presenting the financial stability of the organization. In the given table rises were partially balance by capital purchases of $1.1 billion and other payments for intangible assets. Based on the ratios for Apple they are moving in the right direction, consistently increasing assets while minimizing their liabilities resulting in the higher ratio numbers shown above. Firms that are rated with the highest ratio figure present the best possible firm in terms of liquidity. Looking at a firm’s activity ratio provides an illustration of how well a company and its management use the company’s assets

Related Documents