Financial analysis of Microsoft Corp

Topics: Financial ratios, Financial ratio, Balance sheet Pages: 9 (1609 words) Published: October 10, 2013


Outline:
I. Introduction
II. Finance statement analysis
1. Common-size
1.1Balance sheet
1.2Income statement
2. Financial ratio analysis
2.1Liquidity ratio
2.2Efficiency ratio
2.3Leverage ratio
2.4 Profitability ratio
3. DuPont analysis
4. Cash flow analysis
III. Conclusion
IV. References

I. INTRODUCTION
Apple Inc., formerly Apple Computer, Inc., is an American multinational corporation headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software and personal computers. Its best-known hardware products are the Mac line of computers, the iPod music player, the iPhone smartphone, and the iPad tablet computer. Its software includes the OS X and iOS operating systems, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and production suites. The company was founded on April 1, 1976, and incorporated as Apple Computer, Inc. on January 3, 1977.The word "Computer" was removed from its name on January 9, 2007, reflecting its shifted focus towards consumer electronics after the introduction of the iPhone. Apple is the world's second-largest information technology company by revenue after Samsung Electronics and the world's third-largest mobile phone maker after Samsung and Nokia. Fortune magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012. As of May 2013, Apple maintains 406 retail stores in fourteen countries as well as the online Apple Store and iTunes Store. It is the second-largest publicly traded corporation in the world by market capitalization, with an estimated value of US$414 billion as of January 2013. As of September 29, 2012, the company had 72,800 permanent full-time employees and 3,300 temporary full-time employees worldwide. Its worldwide annual revenue in 2012 totaled $156 billion. In May 2013, Apple had made it to the top ten of the Fortune 500 list of companies for the first time, taking the 6 position, 11 places up from the previous year. Some diagrams will prove the high position of Apple in the market:

I. FINANCE STATEMENT ANALYSIS
1. Common-size:
Now, Apple Computer Inc is probably the most successful technology companies in the world with a peak of 400 billion dollars. All Apple products like iPod, iPad, iPhone, Macbook Air, hold huge market share compared to competitors and earned enormous profits. However, to analysis accurately about the development of a company, common-size is a better tool than the amount of net sales or net income. 1.1 Balance Sheet:

Files excel: Balance sheet And Common-Size Balance Sheet
As shown in Balance Sheet, we see that there were increases in assets, liabilities and owner equity of Apple Inc. Firstly, the value of Apple’s assets in 2012 equals 2.3 times which is compared with its assets in 2010 ( 75.18B to 176.06B), it means that there was a big investment from company for development plan, factories, equipment, … which made users of cash increase. However, there were good features when both account receivable and bad debts decreased, which pointed that the company collected money and revenue well to increase money velocity and reinvestment. Secondary, total liabilities and equities also went up. Liabilities had fallen down slightly of about 4% (from 36.43% to 32.86%) and total equity also raised the same this amount. Short balance sheet of SAMSUNG:

2010
2011
2012
Asset
134.29B
136.78B
140.76B
Liabilities
45.06B
47.27B
48.03B
Equity
89.23B
89.51
92.73B

Short balance sheet of Apple:

2010
2011
2012
Asset
75.18B
116.37B
176.06B
Liabilities
27.39B
39.76B
57.85B
Equity
47.79B
76.61B
118.21B

As we see tables above, Apple has strong step in development than Samsung. For example, Samsung had 134.29 billion USD in assets in 2010 which was bigger than 75.18 Billion USD of Apple but after 3 year, apple held 176.06 billion USD when Samsung had a smaller...

References: Sep 28, 2012
Sep 23, 2011
Sep 24, 2010
Net Income
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