Apple's Financial Statement Analysis

Only available on StudyMode
  • Download(s) : 86
  • Published : December 1, 2010
Open Document
Text Preview
APPLE COMPUTER COMPANY

Financial Statement Analysis Project

Table of Contents

Part I ……………………………………………………………3 Part II …………………………………………………………...5 Part III …………………………………………………………..6 Part IV …………………………………………………………..7 Part V ……………………………………………………….......8 Part VI ………………………………………………………….10 Part VII …………………………………………………………11 Appendices …………………………………………………......12

Appendices
AAPL
5 Year Balance Sheet Report…………………………………….12 5 Year Income Statement………………………………………...13 5 Year Cash Flow Statement……………………………………..14 Asustek Computer Inc
5 Year Balance Sheet Report…………………………………….15 5 Year Income Statement………………………………………...16 5 Year Cash Flow Statement……………………………………..17 Cisco Systems Inc
5 Year Balance Sheet Report…………………………………….19 5 Year Income Statement………………………………………...20 5 Year Cash Flow Statement……………………………………..21 Ratio Analysis
SEC Annual Ratios Report……………………………………….22

Part I. Description of AAPL
Industry
Apple Inc. operates in computer hardware industry.

Products
The Group's principal activities are to design, manufacture and market personal computers, mobile communication devices, and portable digital music and video players and sell a variety of related software, services, peripherals, and networking solutions. It also sells a variety of third-party Macintosh (Mac), iPhone and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and various other accessories and peripherals through its online and retail stores, and digital content and applications through the iTunes Store. It sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. The Group operates in the United States, Europe and Japan.

Key Factors Influencing the Current Financial Condition
From the Thomson Financial Annual Financial Summary, we can get that total assets, total liabilities, net income, net cash flow operating/investing/financing and dividends per share are the key factors influencing the current financial condition and results of operations. Apple Inc. (Nasdaq: AAPL) has decided to postpone the launch of its iPad in international markets to the end of May 2010 (initially expected to be launched by the end of April). The company cited strong U.S. demand, which exceeded supply, as the reason for the postponement. The company is expected to announce international pricing and begin taking online pre-orders on May 10. International markets have become an important driver of growth for AAPL as it has increased its presence in international markets via iPhones and iPods. International sales accounted for 58% of total revenue in the first quarter of 2010 (most recent quarter) compared to 46% of total revenue in the first quarter of 2009. Apple's shares are now trading at an all-time high, as investors are more focused on the rising demand for the iPad, accepting the near-term delay in shipments. According to sources, Vodafone (Nasdaq: VOD) will be the carrier for iPad in Australia, Germany, Italy, Spain and the UK. Telefonica's (NYSE: TEF) O2 will offer the iPad in the UK only while France Telecom's (NYSE: FTE) Orange will offer the iPad in France, UK, Spain and Switzerland. All the three carriers will offer their pricing plans by the end of May. We believe that the international rollout will help it grow higher revenues in 2010 and higher margins from additional sales. The iPad is available only in the U.S. for now and is priced at just $499 for the 16GB model, going up to $599 for the 32GB model and $699 for 64GB (only for the Wi-Fi model). The 3G version of the same device will sell for $629 and will not include monthly fees to AT&T (NYSE: T) for wireless service. Recently, market research firm iSuppli estimated that the raw materials used for the 16 GB WiFi iPad will cost $260, compared to its earlier estimate of $230. This implies that overall gross margins for the iPad...
tracking img