Company Analysis - Apple
TABLE OF CONTENTS
Brief History & Current Happenings
Apple Products & Services
Short-Term Liquidity Analysis
Acid Test (or Quick Test Ratio)
Accounts Receivable Turnover
Days in Sales Receivables
Days in Inventory
Days Purchases in Account Payable
Average Net Trade Cycle
Cash provided by operations to average current liabilities
CAPITAL STRUCTURE AND SOLVENCY RATIOS ANALYSIS
Long term debt to assets
Earnings to Fixed charges
Cash flow to fixed charges
Financial leverage index
Altman Z score
PROFIT MARGIN RATIOS ANALYSIS
Gross profit Margin
Net Profit Margin
Operating Profit Margin
RETURN ON INVESTMENT RATIOS ANALYSIS
Return on Assets
Return on Common Equity
Equity Growth Rate
Disaggregation of Return on Common Equity
ASSET UTILIZATION RATIOS ANALYSIS
Accounts Receivables Turnover
Fixed Asset Turnover
Other Asset Turnover
Total Asset Turnover
This report serves as an analysis of a leading company in the computer manufacturing industry. Apple is presently within the top five positions for being one of the top computer manufacturing companies in the world. Currently, it holds 5.8% of the market share and leads the market in fourth place. The company is making strides toward achieving success in the industry, more specifically in the consumer electronics market with the creation of the new iPhone.
In this report, Apple's financials are analyzed for the years 2002 through 2006. These figures are compared to their main competitor, Hewlett Packard, which is the industry's top leader. In addition, also included in this report is an in-depth look at the computer manufacturing industry: trends, changes and innovations that are affecting Apple and its competitors.
With consolidation becoming the latest development in the computer manufacturing industry, competition to Apple's 4th place position is intensifying. Apple hopes to become a larger entity and lessen the risks of a homogeneous product offering to consumers by diversifying its product lines.
By the end of this report, an insightful perspective on the financial performance of Apple and their future success or failure in their industry will have been provided.
Apple is one of the largest suppliers of computers holding 5.8% of the market. Although computers are still an important part of its product mix, music-related products are currently at the top of Apple's playlist. The company scored a runaway hit with its digital music players (iPod) and online music store (iTunes).
Brief History and Current Happenings
Apple was founded on April 1, 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. The first computer manufactured by Apple, Apple I, was hand-built by Steve Wozniak in the living room of Job's parent's home. It was sold as a mother board equipped with a CPU, RAM and basic textual-video chips.
On April 16, 1977, Apple II was introduced at the First West Coast Computer Faire. Despite a price higher than competitors, it quickly surpassed its two main rivals, the TRS-80 and Commodore PET, to become the market leader. Apple's market advantage stemmed from its...
Please join StudyMode to read the full document