Case 23 Apple Inc: Taking a bite out of the competition

Case 23 Apple Inc: Taking a bite out of the competition

Introduction

This case study describes the performance of the Apple Inc through 2008 and above, and described the impact of current economic meltdown in the performance of the country. For instance in year 2008 after performing exceptionally well and giving a record breaking performance with respect to market, and after that the owner of the company expresses that “management have no idea as how this economic meltdown will affect the performance of the company (Schneiders, 2011).

However, the owner further explained that this company is growing stronger, and is on the way of producing remarkable products that will transform the way of living, also this company comprises of experienced and quality human resource of the technology history. Moreover, in year 2009, when most of the competitors of the company were planning to reduce their expenses, Apple reported his best quarterly figures since it is incorporation as the company was able to cross 10 billion in three months

In mid of 2009, as unexpected new surfaced, that shocked the entire IT industry of the country. The founder of Apple Inc was planning to depart from the operational aspects of the company, which he incorporated back in 1976 because of his health issues. However, with the current growth of the company, and strategic planning, will the sudden loss of the owner have a negative impact on the performance of the company. This report will briefly analyze the financial aspects of the company from 2007-2009 (Schoeing et al, 2005).

Discussion

Financial Analysis of the company

For effective analyzing of the financial performance, the data was gathered from company's Balance Sheet, Income Statement for the period of (2007-2009). Moreover, the financial period of the company ends at September, so data was collected from (Oct to Dec) and (Jan to Sept) for each fiscal year (Schoeing et al, 2005).

Balance Sheet

Since year 2006 the total assets of the company has ($25347) in 2007, ($39572) in 2008 and ($47501) in 2009. This shows that due to progressive growth company assets are increasing over 100 percent, means that company is in a good position to represent itself in the market. Further, with excessive cash balance, equity conditions the company is self-sufficient in excising its capital needs, is in position to complete its future expenditures, company is able to pay of its outstanding loans. Thus, it could be concluded that with strong cash and cash equivalent company is in good position to pay off all of its debt and reduce its long-term loans.

On the other hand, company was able to increase its liabilities from preceding years mainly because of exceptional growth in the market. For instance, their liability in 2007 increases at more than 47 percent from 2006, and is expected to increase at the same rate in the years ahead. In addition to this, company has witness considerable increase in their common equity and retained earning form year 2007-2009 (Tsay, ...