Apple\'s Financial Analysis PDF

Preview

Summary

Financial Analysis of Apple's balance sheets, earning statements and more....

Description

Apple’s Financial Analysis Reference: Apple’s website, statements from September 29th, 2018, to September 26th, 2020, https://www.macrotrends.net/stocks/charts/AAP4355L/apple/income-statement Profitability Ratios: Evaluation; 2. Based on the data below we can see that Apple’s net profit has been decreased over the years. As Apple is one of the most profitable companies in the world, and even though net profit has decreased approximately 1% yearly since 2018, return on equity has been growing. 

Net Profit Margin: September 30, 2019 21,24%

September 30, 2018 22,414%



September 30, 2020 20,914% Return on Equity: September 30, 2020 17,726%

September 30, 2019 16,323%

September 30, 2018 16,278%

Current Ratio: Evaluation; 3. Apple’s current ratio shows us a little decrease over 3 years in its ability to pay its obligations, although we can still notice that its ratio keeps above 1.0 which indicates Apple is reputable and reliable. However, it is important to wait for Apple’s 2021 statements to determine if it’s going to return its growth or not. September 30, 2020 1.25

September 30, 2019 1.36

September 30, 2018 1.41

Acid-Test Ratio: Evaluation; 3. As the current ratio, Apple’s acid-test ratio shows us a little decrease over 3 years, but it is still above 1.0 which is a good sign because it indicates that Apple can cover its short-term liabilities. it is important to wait for Apple’s 2021 statements to determine if it’s going to return its growth or not. September 30, 2020 1.23

September 30, 2019 1.34

September 30, 2018 1.39

Average age of Inventory: Evaluation; 4. As we can see from the ratios beneath Apple has great efficiency in selling its inventory quickly. It’s due to the fact Apple is one of the bestknown technology companies in the world. The average age of Apple’s inventory is 8/9 days. September 30, 2020 8.74

September 30, 2019 9.26

September 30, 2018 8.81

Net Assets to total Assets Ratio: Evaluation; 4. Since 2018 Apple has improved its net assets to total assets, showing a considerable decrease in its number of liabilities hold. September 30, 2020

September 30, 2019

September 30, 2018

0,20

0,26

0.29

Debt to Equity Ratio: Evaluation; 3. Here we have something to keep an eye on. Although Apple is a reliable company as already mentioned before, its D/E has been increasing considerably over the past 3 years. September 30, 2020 0,79

September 30, 2019 0,73

September 30, 2018 0.70

Sales, assets, and profit growth: Evaluation; 2. Apple’s sales growth has decreased approximately 10% over 3 years, based on its income statements provided, we can also identify that assets and profit also had decreased considerably compared to previous years. 2019 although weak in profit and sales, assets had a great growth compared to 2018, however, most recent statements show a negative asset margin. September 30, 2020

September 30, 2019

September 30, 2018

5% -$19,106 6%

-2,04% $31,480 -2%

15,86% $2,694 16%

Sales Assets Profit

Sep 30, 2020

Sep 30, 2019

Sep 30, 2018

2

15,86%

5%

16%

6%

-2,04%

-2%

-4,32

-7,43

Sources of financing: Evaluation; 4. We can see that Apple keeps its great, stable, and efficient retained earnings average over 2018, 2019, and 2020. Talking about its long-term debts we can see it had slightly grown between years 2019 and 2020.

Retained Earnings Long Term Debit

September 30, 2020

September 30, 2019

September 30, 2018

$57,411 $98,667

$55,256 $91,807

$59,531 $93,735

Share Holders

Sep 30, 2020

Sep 30, 2019

-

Sep 30, 2018

120

100

80

60 98,667

91,807

93,735

40 57,411

55,256

59,531

20

0 Retained Earnings

Long Term Debit...