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finance report
Executive Summary This report provides an assessment and analysis of the present and future profitability, liquidity and the financial stability of Apple Inc. The method of research include Apple’s business model ,evaluation of income statement, balance sheet, statement of cash flows and ratios such as profitability ratios, liquidity ratios as well as degree of operating leverage, degree of financial leverage and pro forma financial statements. All calculations can be seen in the appendices.
The report finds that Apple and its competitor are doing well in the market. Samsung is now a days doing good than apple .Samsung initially had a very low profit margin is now reached the heights. Apple is still maintaining a very high profit margin.

Table of contents

1. INCOME STATEMENT OF APPLE
2. BALANCE SHEET OF APPLE
3. STATEMENT OF CASH FLOWS
4. DOL& DFL FOR APPLE & SAMSUNG
5. DOL& DFL ANALYSIS
6. PRO FORMA INCOME STATEMENT
7. PRO FORMA BALANCE SHEET
8. FINANCIAL RATIOS
9. FINANCIAL RATIO ANALYSIS
10. RECOMMENDATIONS
11. REFERENCES
12. APPENDIXES

Income statement

2008

2009

2010

2011

Sales/Revenue
32.48B
42.6B

65.07B
108.6B

Cost of goods sold 21.33B 25.75B
39.5B

64.08B

Depreciation & Amortization Expense
473M

734M

1.03B

1.81B

Depreciation

363M

606M

815M

1.68B

Amortization of the intangibles
110M

128M

212M

214M

Gross Income

11.15B 16.85B
25.57B
44.52B

Selling and Admin.Expense
4.87B

5.48B

7.3B

10.03B

R&D

1.11B

1.33B

1.78B

2.43B

Other selling & admin.expense
3.76B

4.15B

5.52B

7.6B

Non-operating Income/Expense
33 M

44M

336M

758M

Non-operating Interest Income
653M

407M

311M


References: 1. (2011). income statement. Available: http://www.marketwatch.com/investing/stock/aapl/financials. Last accessed 26 July 2012. DFL (2011)=16.23*100/18.27=88.83/80.83 =0.9 12.53/15.15*100 DFL (2010) = 6.91*100/11.36 = 60.8/66.8= 1.09 6.07*100/9.08 DFL (2009) =3.72*100/5.36 = 69.4/81.1 =0.8 5.09*100/6.27 DFL (2008) = 1.43*100/3.93= 36.3/41.92 =0.86 1.85*100/4.413 FINANCIAL RATIOS OF APPLE (2011) PROFIT MARGIN= NET INCOME/SALES =25.92*100/108.6 =23.8% TOTAL ASSET TURNOVER= SALES/TOTAL ASSETS= 108.6/116.37=0.93 FINANCIAL RATIOS (2010)
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