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Business Analysis

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  • October 2012
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Business Analysis Part II
University of Phoenix
MGT/521: Leo Shelton
Tanitra Stigger
February 19, 2012

Business Analysis Part II
The following financial statements from Apple are a very good display of why investing in the Apple Corporation is a good decision. Year over year their revenue has increased by over 80 percent. July 19, 2011—Apple® announced financial results for its fiscal 2011 third quarter ended June 25, 2011. The Company posted record quarterly revenue of $28.57 billion… …“We’re thrilled to deliver our best quarter ever, with revenue up 82 percent and profits up 125 percent,” said Steve Jobs, Apple’s CEO. “Right now, we’re very focused and excited about bringing iOS 5 and iCloud to our users this fall.”…“We are extremely pleased with our performance which drove quarterly cash flow from operations of $11.1 billion, an increase of 131 percent year-over-year,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the fourth fiscal quarter of 2011, we expect revenue of about $25 billion and we expect diluted earnings per share of about $5.50” (Apple, 2011). Apple Inc. is currently rated as having average Accounting & Governance Risk (AGR). This places them in the 50th percentile among all companies in North America, indicating higher accounting and governance risk than 50% of companies (Business Insider Inc., 2011). Apple’s current financial health appears to be great! So great in fact that financially Apple is soaring into numbers the company has never experienced before. Apple is succeeding all fronts. The annual gross profit listed on Yahoo!’s finance page for Apple is $26 Billion which is a growth of at least 34% year over year since September 2008 (Yahoo!, 2011). Currently, Apple's revenue growth is 83%. The annual balance sheet for Apple has also improved, as there was a dip in current assets, specifically cash and cash equivalents in 2009. Currently all assets are at a peak and so are the total liabilities from the past...

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