APPLE INC.

Company Analysis
Table of Contents

 Apple Revenues Chart

 Apple Horizontal Analysis

 Apple Vertical Analysis

 Apple Performance Ratios

 Invesment conclusion
 Apples Earnings 2011 through 2013
Sales Revenue Apple Inc.
$180,000.00

$160,000.00

$140,000.00

$120,000.00

$100,000.00

$80,000.00

$60,000.00

$40,000.00

$20,000.00

$-
September 24 2011 September 29 2012 September 28 2013
 Apple Earnings 2011 through 2013
 Revenues are increasing constantly albeit at a slower rate from 2012
to 2013.
 A further inspection of the companies financial statements reveals
much more detail.
 Apple Inc. Performance Ratios
Performance ratios are comparisons Performance Ratios September 28 2013 September 29 2012

of different values within the working capital

current
$ 29,628
1.68
$ 19,111
1.50

company that give a bigger picture acid test

inventory turnover
$ 1.64
133.785
$ 1.48
122.511

of the liquidity, solvency, growth, average inventory

account rec. Turnover
$ 1,277.50
0.070
$ 1,277.50
0.077

and efficiency of a company average account rec.

days of sales outstanding
$ 12,016.00
27.98098414
$ 12,016.00
25.49039027
days in inventory 0.012 0.015
regardless of its size. They will be avg inventory $ 1,277.50 $ 1,277.50
fixed asset turnover 1.278 1.322
referred to and explained in total asset turnover 0.8257 0.8889
debt ratio 0.4031 0.3286
greater detail later in the times interest earned
equity multiplier 1.675448607 1.489417139
presentation to provide further gross profit margin
operating profit margin
38%
29%
44%
35%
evidence of conclusions drawn from net profit margin
ROE
2%
30%
27%
35%
the vertical and horizontal analysis. ROA
average total assets $ 191,532.00 $ 191,532.00
Apple Vertical Analysis of Balance Sheet

vertical analysis % of total assets

September 28 2013 September 29 2012

cash and cash equivalents 6.9% significant 6.1%
short term marketable securitites 12.7% significant 10.4%
accounts receivable, less allowances of $99 amd 98$
respt. 6.3% - 6.2%
inventories 0.9% significant 0.4%
deferred tax assets 1.7% significant 1.5%
vendor non-trade receivables 3.6% - 4.4%
other current assets 3.3% - 3.7%
total current assets 35.4% - 32.7%
long term marketable securities 51.3% - 52.3%
property, plant and equipment, net 8.0% - 8.8%
goodwill 0.8% significant 0.6%
acquired intangible assets, net 2.0% - 2.4%
other assets 2.5% - 3.1%
total assets 100.0% - 100.0%
 Apple Vertical Analysis
Significant changes in capital structure of Apple Inc.:
Values represent percentage of total sales

/13 /12 /11 Apple was most efficient in collecting

income in 2012. It had a low cost of goods
 COGS 62% 56% 60% as well as a high income after operational
costs were factored in. The company also
 Operating Income 29% 35% 31% managed to collect the most profit relative
to its net sales.
 Net income 2% 27% 24%
 Apple Horizontal Analysis

2012-2013 %increase 2011-2012

Net Sales 9% 45%
COGS 21% 36%
Gross Margin -6% 57%
Operating Expenses
Research and Developement 32% 39%
Selling, general and administrative 941% -86%
Total operating expenses 14% 34%
Operating Income -11% 63%
Other Income/(expense), net 121% 26%
Income before provision for income taxes -10% 63%
Provision for income taxes -7% 69%
Net income -11% 61%

Earnings per share

Basic -10% 59%
Diluted -10% 60%
Shares used in computing earnings per share
Basic -1% 1%
diluted -1% 1%
Cash dividends declared per common share 330%

See full statement analysis

 Apple Horizontal Analysis continued

 The most notable changes in absolute terms in Apple’s income

statement are:
 Relatively consistent increase in production costs
 A significantly smaller increase in sales compared to production costs
signaling that the company is taking on more cost while gaining less
revenue

See Performance ratios

 Conclusion

The company is healthy and is well suited for safe investment

See full invesment report