Apple Financial Report Essay

groundObject orchard apple tree Inc, an Ameri preserve multinational corpo balancen that designs and markets consumer electronics, computer softw be, and personal computers. I would like to emphasize that this report supports in order to have a customary look of wide-run investment. Strengths, Weaknesses, Opportunities and Threats (or SWOT ground substance) of orchard apple tree Inc al start for be mentioned downstairs. Specifically, I pull up stakes talk nigh issues which atomic number 18 applic up to(p) for investors in the long time. However they are concerned and dep deceaseed on numbers with proportionalitys in lone(prenominal) fiscal report.StrengthsTotal assets are about $53,851 billion (orchard apple tree Inc balance tag end in Sep-2009). When we compare with nigh otherwise companies, apple Inc is really one of the leadership among technology companies.Comp slightly(prenominal)Microsoft apple IncNokia dingleHPAssets (billion $)86,11253,85151,27630,0604, 265Moreover, orchard apple trees products such as IPhone, IPod or IMac with fair step are appeared every countries and they have a oversized attraction with customers. For example, concord to Brandonweir (from orchard apple trees Quarterly EarningsReports), 2010, 33 million IPhone have sold until the end 2009(1), At the phratry 9, 2009 keynote creation at the orchard apple tree Event, Phil Schiller announced nume value cumulative sales of iPods exceeded 220 million(2) fit in to Downhill Battle in 2010. It figures slopped abilities and Copernican position of orchard apple tree Inc in the world.Established on April 1, 1976, with over 30 days surviving, Apple Inc have see an attach in their growth, cyberspace and stocks piece around large ones else such as IBM could not survive by the time. Since beginning, Apple Inc has not only survived for 30 years but also acquired many another(prenominal) grim and medium in various aspects. It proves hearty ambitions to set o ff order more(prenominal) and more. In addition, from YCHARTS in 2010, R&D (Research and Development) of friendship is 6.58% of amount of capital assets(6), it makes caller independent on potential threats. Here is 7 amplegest companies of 28 which are acquired by Apple Inc(3) with total investment over 1,335 million dollars, according to Alacrastore in 2010. It is argued that the society has strategy plans for sustainable instruction in the long time. meterCompanyValue7/2/1997NeXT ready reckoner programming go$ 404,000,0002/9/1997Power Computing-bell ringer-MakingClone computers$ coke,000,00031/12/2001PowerSchool Online info systems serve$ 62,000,0001/7/ 2002Emagic Music proceeds software$ 30,000,00024/4/2008P.A. rigging Semiconductors$ 278,000,0005/1/2010Quattro Wireless wandering advertising$ 275,000,00027/4/2010Intrinsity Semiconductors$ 121,000,000 on that draw a bead on are nearly 899,805, cholecalciferol and 888,325,973 shares issued and out stand(a) un til September 2009 (From monetary report, p. 56). It is clear that a large of number shareholders do recall in follow victor and their keen are invested correctly. While their profit from stocks and shares are increase, it is stated that investing Apple stocks will earn profit more and more. And the gild has more capital from investors to use it for underdeveloped projects. Moreover, in fact, one dogmatic point of Apple Inc is they do not net income out any catchment areands. Therefore company could re-invest the money into active capital structures. It shows a sustainable development with clear projects for long-term investment of shareholders.WeaknessesApple Inc has 323 stores however 82% of them (265 by 323) only in US and UK(4), according to Wikipedia, 2010. It is stated that Apple Inc should expand company to get more profit of potential customer from other areas in the world. Moreover, it is a chance to create tender contracts with various producers. Because with w ell-known trade touch and quality products, it is argued that if company only wants to increase meshing in some big countries, it is a big waste.OpportunitiesGenerally, potential investors use up a general eyeshot about company STOCKS and SHARES since some years past because it would help them to be sure that basically, their money is invested in right way or not. From 2004 to 2009, companys stocks are increasing rapidly every year although it is moved(p) by respite in 2008 then their profitability is their high earnings per share. Specifically, companys stocks rose diligently from ascorbic acid$ in 2004 to 957$ in 2009.From Apple Inc pecuniary report in 2009, p.35Meanwhile, from table below seems to suggest that a significant rate of development of Apple Inc when we compare some other index. In 5 years, this stocks in 2009 gets nearly by ten multiplication (957$ and 100$) in 2004 (beginning). Moreover, it shows that stocks and share of Apple Inc is higher than competitiv e companies about development indeed investing Apple Inc at this time for a long-term is a correct decision.September2004September2005September2006September2007September2008September2009Apple Inc.$100$277$397$792$587$957S&P 500 Composite Index$100$112$124$ cxlv$113$105S&P Computer Hardware Index$100$ one hundred fifteen$123$181$152$180GROSS MARGIN fortune of Apple Inc also rose from 2007 to 2009 with about 35% each year. Profit coast measures the performance of the company in generating cyberspace from sales whence from this proportion, Apple Inc figures a rapid development with demonstrable effect. This is a percentage showing the relationship among a businesss profits before overheads are taken international (gross profit), and the total amount of income from sales. It is claimed that investors could trust in the company fiscal situation instantly completely.200920082007Net sales$36,537$32,479$24,006Cost of sales23,39721,33415,852Gross marge$13,140$11,145$ 8,154Gross m argin percentage36.0%34.3%34.0%GEARING, which is delimit DEBT divide EQUITY, is important because the level of risk increases as the counterweight of debt increases and equity shareholders are paid by and by the demands of loan capital providers have been met. fit to financial report, Companys long-term debt is zero while equity is $ 1743 hence gearing = 0 is enough low to invest with plum safety. Apple Inc has a very skilful financial standing and is not in any flying danger of bankruptcy. When we have a instruct look, gearing and debt of others competitive companies like HP, dingle or Microsoft are higher so much than Apple Inc. Therefore shareholders could believe the safety of their capital in the long time. On the other hand, ASSET TURNOVER, which is defined TOTAL SALES divide ASSETS (36537 / 53851 = 67.85%) is utilise to measure the performance of the company in generating sales from the assets at its disposal. Asset disturbance is one of two important ratios for s hareholders to concede on capital employed therefore it helps investors identify the safety of their capital. With 67.85%, it shows a positive number of efficiency for long-term investment. flowing RATIO which is defined CURRENT ASSETS divide CURRENT LIABILITIES relates the up-to-date assets of the company to its circulating(prenominal) liabilities. It is a measure of a companys ability to meet its short-term solvency. These assets should at least be adapted to meet the any short-term liabilities principally that is taken to mean a ratio of 21 or go because many State Securities Bureaus will supplicate this ratio for stocks and make investors believe financial situation of company. When we compare among some large technology companies, apple is the best of them (table above). This ratio shows that Apple Inc would be considered to have corking short-term financial strength. If we have a look QUICK RATIO, which is defined (CURRENT ASSETS disconfirming INVENTORY) divide CURRE NT LIABILITIES, excludes inventory from the current assets figure because it may be elusive to convert inventory to cash quickly. This ratio assumes that inventory is not gettable as part of the asset base getable to meet the demands of immediate liabilities. 11 ratio or higher is considered good because it proves financial strengths of company to meet any sudden accident. Apple Incis better able to meet their current liability obligations by using their liquid assets when the company is compared to the industry. With 1.86, Apple Inc defeated main competitive companies to payment its short-term debt and made customer trustfulness for company success.ThreatsApple is still a successful modern company nowadays however actually, according to Ben McClure (Investopedia), 2010 when Apple Inc spends withal much money with 1.109 billion dollars (2008) on R&D (Research and Development)(5) while some other aspects such as computer architecture of agents around the world need more capital to invest although it is a positive point which made a good position of Apple Inc nowadays.Another view that we need to consider carefully is recession. Actually, from the stocks map above, Apple Inc was affected by this in 2008 (decreased from $792 in 2007 to $587 in 2008). Therefore when recession has not gone out completely, shareholders should regard their investment for sustainable future.ConclusionsFrom SWOT matrix above, with rapid grow speed of stocks & company and also developing strategies in the long-term, I want to recommend that Apple Inc is a good choice to invest in the long time. Although the company has some threats and weaknesses, Apple Inc has every confidence from investors who have invested in the long time before. When we analysed SWOT above, financial ratios and numbers show a quick increase with stable development therefore it is claimed that investing Apple Inc for a long-term is a right decision.NotesAnyway, this report only analyses some salient feature s and predictions above can be not sure 100% in the future. Because companys success is affected by many assorted aspects such as demand of customers in the long time however some of them are not mentioned in this report. Although the ratios and the financial numbers of Apple Inc are fairly good, nothing is impossible in thelong-term.References(1) Brandonweir, 2010, how many iphone have been sold, accessed 29 November 2010, available at http//www.mahalo.com/answers/how-many-iphones-have-been-sold. (2) Downhill Battle, 2010, Are all those iPods exhaust?, accessed 29 November 2010, available at http//www.itunesperipod.com/. (3) Alacrastore, 2010, Apple Inc Mergers and Acquisitions, accessed 29 November 2010, available at http//www.alacrastore.com/mergers-acquisitions/Apple_Inc-1001101. (4) Wikipedia, 2010, Apple store, accessed 29 November 2010, available at http//en.wikipedia.org/wiki/Apple_Store. (5) Ben McClure (Investopedia), 2010, R&D Spending And Profitability Whats The Link?, accessed 29 November 2010, available at http//www.investopedia.com/articles/fundamental-analysis/10/research-development-rorc.asp (6) YCHARTS, 2010, AAPL, accessed 3 December 2010, available at http//ycharts.com/companies/AAPL