Evaluation of Corporate Performance
Evaluation of Corporate Performance
Apple, INC.
Fay Catlett
BUS650: Managerial Finance
Instructor Stanley Atkinson
July 06, 2015 In this paper, the author will give an introduction of the company chosen and include background information. The author will present a review of the financial statement of the company and pro forma financial statements for the company for the next two years assuming there is a 10% growth rate in sales and the Cost of Goods Sold for each of the next two years (2015 and 2016). The author will present a ratio analysis for the last fiscal year using two ratios from the liquidity, financial leverage, asset management, profitability, market value, return on equity (ROE) using the DuPont system, assess management performance by calculating economic value added (EVA), and evaluate the soundness of the company’s financial policies. Lastly, the author will give a synopsis of the findings and make a recommendation of whether or not to purchase stock from this company.
History
Apple, Inc. is a company that has become a preeminent leader in the business of producing personal computers and personal electronics items. Apple, Inc. came into being in 1976 and was the brainchild of Steven Wozniac. Wozniac developed the “Apple I personal computing system and Apple Computer, Inc. was incorporated in 1977 by Wozniac, Steve Jobs, and Ronald Wayne” (Berger, 2011, para. 1). By 1980, Apple Computer, Inc. had released the Apple II, Apple II+, and the Apple III personal computers (Berger, 2011). The Apple III personal computer was developed to compete with IBM and Microsoft who had entered the corporate computing market but, the sales of the Apple III computer were poor (Berger, 2011). Later that year, Wozniac, Jobs, and Wayne took Apple, Inc. “public with an offering of 4.6 million shares of stock” (Berger, 2011, para. 5). In 1982, Apple recorded $1billion in sales (Berger, 2011). In 1983, Apple Computer, Inc. was the first company to market
Apple, INC.
Fay Catlett
BUS650: Managerial Finance
Instructor Stanley Atkinson
July 06, 2015 In this paper, the author will give an introduction of the company chosen and include background information. The author will present a review of the financial statement of the company and pro forma financial statements for the company for the next two years assuming there is a 10% growth rate in sales and the Cost of Goods Sold for each of the next two years (2015 and 2016). The author will present a ratio analysis for the last fiscal year using two ratios from the liquidity, financial leverage, asset management, profitability, market value, return on equity (ROE) using the DuPont system, assess management performance by calculating economic value added (EVA), and evaluate the soundness of the company’s financial policies. Lastly, the author will give a synopsis of the findings and make a recommendation of whether or not to purchase stock from this company.
History
Apple, Inc. is a company that has become a preeminent leader in the business of producing personal computers and personal electronics items. Apple, Inc. came into being in 1976 and was the brainchild of Steven Wozniac. Wozniac developed the “Apple I personal computing system and Apple Computer, Inc. was incorporated in 1977 by Wozniac, Steve Jobs, and Ronald Wayne” (Berger, 2011, para. 1). By 1980, Apple Computer, Inc. had released the Apple II, Apple II+, and the Apple III personal computers (Berger, 2011). The Apple III personal computer was developed to compete with IBM and Microsoft who had entered the corporate computing market but, the sales of the Apple III computer were poor (Berger, 2011). Later that year, Wozniac, Jobs, and Wayne took Apple, Inc. “public with an offering of 4.6 million shares of stock” (Berger, 2011, para. 5). In 1982, Apple recorded $1billion in sales (Berger, 2011). In 1983, Apple Computer, Inc. was the first company to market
References: Apple, INC., 2014 Annual Report., Mergent., (n.d.). Mergent Online Quick Tips., Mergent Online. Retrieved from Online Ashford Library. Apple Inc. Real Time Stock Quotes., Retrieved from:http://www.nasdaq.com/symbol/aapl/real- time Berger, M., (2011)., An illustrated history of Apple’s products and executives, retrieved from: Gupta, A., & Prinzinger, J. (2013). Apple, inc.: Where is it going from here? Journal of Business Case Studies (Online), 9(3), 215-n/a. Retrieved from http://search.proquest.com/docview/1418712125?accountid=32521 In from the cold Koch, J. V., Fenili, R. N., & Cebula, R. J. (2011). Do investors care if Steve Jobs is healthy? Atlantic Economic Journal, 39(1), 59-70. doi:http://dx.doi.org/10.1007/s11293-010-9261-z Mitchell, W