Working Capital

APPLE INC. Financial Resources

Net Working Capital is a measure of both a company’s efficiency and its short-term financial health. The working capital ratio is calculated as Working C
– Current liabilities. Accounting, the system of recording and summarizing a business and financial transactions and analyzing, verifying, and reporting the results is
communication process used by every company whether small or large. Positive working capital means that the company is able to pay off its short term liabilities. Ne
means that a company currently is unable to meet its short term liabilities with its current assets. When a company’s assets do not exceed its current liabilities, it may r
back creditors in the short term. The worst scenario is bankruptcy. Apple Inc. working capital over the last 5 years has constantly increased in enormous numbers. Sin
has consistently maintained a magnificent working capital ratio.

Working capital gives investors an idea of how Apple’s operational efficiency. Evidently, Apple Inc. without question maintains at the top, if not one of the bes
The goal of working capital management is to ensure that a firm is able to continue its operations and that is has sufficient ability to satisfy both maturing short term de
operational expenses. It is vital that a company managing its working capital be able to use its net working capital as a tool to measure the liquidity. With Apple Inc., I
few companies in the world that have absolutely no debt, Apple has many investors that worry whether the company can still maintain its proficiency and efficiency if
investors. I feel that Apple Investors need not to worry as Apple has done a brilliant job investing it funds back into market and in the economy. This is clearly shown
between the 2007 and 2011 Apple Inc.’s net Investing cash flow soared from 3.25 billion to 40.25 billion, making it the wealthiest company in the world.

Operating Activities

Changes in Working Capital 1.33B 4.12B (586M) 1.21B

Receivables (385M) (785M) (939M) (4.86B)

Accounts Payable 1.49B 596M 92M 6.31B

Other Assets/Liabilities 292M 4.47B 207M 361M

Net Operating Cash Flow 5.47B 9.6B 10.16B 18.6B

Investing Activities

2007 2008 2009 2010

Capital Expenditures (986M) (1.2B) (1.21B) (2.12B)

Capital Expenditures (Fixed Assets) (735M) (1.09B) (1.14B) (2.01B)

Capital Expenditures (Other Assets) (251M) (108M) (69M) (116M)

Capital Expenditures Growth - -21.60% -1.17% -74.86%

Capital Expenditures / Sales -4.11% -3.69% -2.85% -3.26%

Net Assets from Acquisitions 0 (220M) 0 (638M)

Sale of Fixed Assets & Businesses 0 0 0 0

Purchase/Sale of Investments (2.31B) (6.76B) (16.15B) (11.09B)

Purchase of Investments (11.74B) (23B) (46.83B) (57.81B)

Sale/Maturity of Investments 9.42B 16.24B 30.68B 46.72B

Other Uses 0 (10M) (74M) (2M)

Other Sources 49M 0 0 0

Net Investing Cash Flow (3.25B) (8.19B) (17.43B) (13.85B)