Apple Financial Analysis

Financial Analysis Project
APPLE INC.
Rev 1.1

A Financial Analysis Project
By
Josie Chavez

Submitted to Kendra Huff, Ph.D.
Assistant Professor of Accounting and Finance
College of Business Administration
Texas A&M University-Kingsville

BUSINESS FINANCE 3338

Spring 2011

TABLE OF CONTENTS LIST OF TABLES iii LIST OF FIGURES v 1. CORPORATE OVERVIEW 1 1.1 Overview of Industry 1 1.2 Overview of Corporation 2 1.2.1 Product/Service Description 4 1.2.2 Earnings History 7 1.2.3 Stock History 8 1.2.4 Current News 9

2. FINANCIAL STATEMENTS 5 2.1 Income Statement 11 2.2 Balance Sheet 12 2.3 Statement of Stockholder’s Equity 14 2.4 Statement of Cash Flows 16

3. FINANCIAL STATEMENT ANALYSIS 16 3.1 Profitability Analysis 18 3.2 Solvency Analysis 21 3.3 Activity Ratios 25 3.4 Leverage Ratios 27

4. CONCLUSION 30 5. REFERENCES 31 6. APPENDICIES 33 6.1 Ratios 33 6.2 Checklist 35

LIST OF TABLES 1 Table 1 Stock History 7 2 Table 2 Income Statement 11 3 Table 3 Balance sheet 12 4 Table 4 Statement of Shareholder’s Equity 14 5 Table 5 Phase Statement of Cash Flows 16 6 Table 6 Gross Profit Margin 18 7 Table 7 Operating Profit Margin 19 8 Table 8 Cash Flow Margin 20 9 Table 9 Return on Investment 20 10 Table 10 Return on Equity 21 11 Table 11 Cash return on Asset 21 12 Table 12 Current Ratio 22 13 Table 13 Quick Ratio 23 14 Table 14 Cash Flow Liquidity Ratio 23 15 Table 15 Average Collection Period 24 16 Table 16 Days Inventory Held 24 17 Table 17 Days Payable Outstanding 25 18 Table 18 Cash Conversion Cycle 25 19 Table 19 A/R Turnover 26 20 Table 20 Inventory Turnover 26 21 Table 21 A/P Turnover 26 22 Table 22 Fixed Asset Turnover 27 23 Table 23 Total Asset Turnover 27 24 Table 24

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