Apple Financial Analysis 1

Topics: Dividend, Apple Inc., Dividends Pages: 5 (1924 words) Published: August 15, 2010
The following paper is a Financial Analysis of Apple, Inc. The paper is an unorthodox Financial Analysis of Apple, but will cover all the key aspects of a Financial Analysis - albeit in a different way. The first section of the Financial Analysis will have preconceived notions of Apple (what an individual thinks of Apple, without the facts in his hand - in this case the Financial Analyst of this paper), the Financial Analysis - which includes stock performance, various financial ratios, dividend payout, graph of Nike's stock performance, graphs of its competitors, graph of its market segment, interest coverage ratios, dividend yield ratios, etc., and a conclusion which contains opinions of the Financial Analyst on Apple's future prospects, its stocks, and whether its creating value to its shareholders.

In this Financial Analysis of Apple, I will go over Apple's financial ratios, key historic stock data, what made its stock deviate from its regular price - events like unveiling of new products, or stepping down of an executive. I will also go over Apple's international operations, performance of its competitors and how Apple is doing in regards to them, where Apple gets most of its information, new products that Apple is unveiling, future opportunities, and what its CEO and Board of Directors feel about Apple's future. I thought of doing Apple's history and origins first, such as who founded Apple, when was it founded, or what were one of its first products. Then I would do Apple's financial analysis including, stock performance evaluation, debt ratios, financial health, and forecast of Apple's stock. But I have decided to forgo doing Apple's history, the reason was that finding historical data is pretty rudimentary, and every individual who wants to invest in Apple or has an interest in Apple should know how to get that particular information. As such, we will skip over Apple's history and this practice will be continued in all our future Financial Analysis of Corporations. Apple General Information

On January 3, 1977, Apple was officially incorporated in California. Apple's stock is traded under sticker Symbol "AAPL" in NASDAQ stock exchange, and in Frankfurt Stock Exchange, Apples' shares trade under the symbol "APCD". Apple became a public company in 1980, and in its Initial Public Offering (IPOD), Apple's shares were offered for $22.50. On a split-adjusted basis, Apple's Initial Public Offering stock price was $2.75. Apple has no preferred stock outstanding. Apple, Inc. Dividend Policy

Apple doesn't pay its stockholders any dividends. In fact, the last time Apple paid dividends was in December of 1995. Apple paid dividends from 15 June 1987 to 1995. As Apple does not have an active dividend policy, Dividend Reinvestment Program (DRIP) is also not available to investors. Cash dividends that Apple did pay, ranged from .06$ to .12$. .06$ regular cash was paid from June 15, 1987 to August 14, 1987; .08$ was paid from December 15, 1987 to September 15, 1988. Apple paid dividends each quarter, and in the months of March, June, September, and December. Apple paid .10$ last quarter of 1988, and first 3 quarters of 1989. .11$ was paid last quarter of 1989 and first three quarters of 1990. .12$ was paid from last quarter of 1990 until the end of stocks regular dividend payout. Apple did have a stock dividend in the year of 2000 and 2005. Apple had a 2-for-1 stock split in February 28, 2005, and June 20, 2000. The stock dividend was declared February 11, Recorded of February 18, and was Payable of February 28 for the year of 2005. For the year 2000, 2-for-1 Stock Split was declared on April 19, recorded on May 19, and was Payable on June 20, 2000. Apple, Inc. Competitor Dividend Policy

Apple's main competitors in "Computer Hardware" include Dell Inc., Hewlett-Packard Co., Microsoft Corp., and Cisco Systems, Inc. Dell Inc. and Cisco Systems, Inc have no dividend policy, thus matching Apple's dividend policy. HP on the other...
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