Financial Analysis

Financial Analysis

Introduction

This paper intends to explore financial aspects of a company. The man focus of this paper is to examine the past 12 month stock prices and its financial performance. Further, it is assumed that the share has been purchased last year and it is sold this year, holding it for one year in order to see the gain or loss. However, for this purpose the company chosen is Apple Inc. The reason behind choosing this company is because it has come on top ranked companies out of nowhere and it has been performing tremendously in the computer industry.

Discussion

Overview of Apple Inc

Apple Computers was founded in 1976. The company is considered as one of the groundbreakers of the technological, innovative industry. Apple has its Headquarter in Cupertino, and retail branches located worldwide. The company has more than 60,400 staff. Steve Jobs and Steve Wozniak were the founders of the company. In 1980, the Apple had a massive flop because of considerable technical problems .However, U.S multinationals have more than one trick up their sleeves thus, Steve Jobs recovered from the flop in 1984 with the first Macintosh that experienced a real world success. This success was followed by many other products with different software and products like the iPod, iPhone or iPad and operating systems to the attention of both business and consumer public.

Financial Highlights

 

Annual

Quarterly

 

2011-09

2010-09

2009-09

2012-06

2011-06

Income Statement

Revenue

108,249

65,225

42,905

 

35,023

28,571

Operating Income

33,789

18,374

11,739

 

11,573

9,379

Net Income

25,922

14,013

8,235

 

8,824

7,308

EPS

27.68

15.15

9.08

 

9.32

7.79

Shares Outstanding

937

925

907

 

947

938

Balance Sheet

Current Asset

44,989

41,679

31,556

 

51,943

46,898

Fixed Assets

71,383

33,505

15,946

 

110,953

59,860

Total Assets

116,371

75,183

47,501

 

162,896

106,758

Current Liabilities

27,970

20,722

11,506

 

33,060

26,859

Total Liabilities

39,757

27,391

15,862

 

51,150

37,415

Stockholders' Equity

76,615

47,791

31,640

 

111,746

69,343

Cash Flow

Cash From Operations

37,529

18,595

10,159

 

41,720

27,100

Capital Expenditures

-7,452

-2,121

-1,213

 

-5,901

-2,881

Free Cash Flow

30,077

16,474

8,946

 

35,819

24,219

Source: Apple Inc. annual report 2012 (Quarterly)

Current Share price (21/10/2012) - $ 609.84

Purchase Price (15/10/2011) - $422.00

Selling Price (15/10/2012) - $634.76

Top Management Team

Steve Jobs was a co-founder of Apple back in 1985. After four consecutive quarter losses, the CEO left the charge and upon request, Steve jobs took the charge of the corporation. In 1997, Jobs again sore ...