The cash flow statement provides information about Apple Inc.'s cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on Apple Inc.'s statement of financial position. Apple Inc Financial Analysis. The following document covers the finance health of Apple Inc. Apple, Inc., formerly known, as Apple Computers, Inc., is a multinational organization whose main business is designing, developing and selling innovative electronic devices, computer software and personal computers to customers. Apple’s market share stands at % for (about 95% of the computers shipped in run on Windows platform). Some of company’s advantages in this segment are the shift to the use of Intel chips, Windows on Mac, Mac OS X and aesthetics/design. FINANCIAL ANALYSIS OF APPLE, INC. Sarah Harris Executive Summary This report serves as an analysis of a leading company in the computer manufacturing industry/5(1). Analysis of Financial Management processes of Apple Inc. Analysis of Financial Management processes of Apple Inc. One of the most important parts of a business is the financial management. Each and every other company always strives to have the best management when it comes to its finances.
- Apple Inc. Financial Analysis
- Financial Analysis Apple Inc.
- Financial Analysis Of Apple, Inc.
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Financial Analysis Apple Inc. Company Background 3 2. Stock Price Analysis 6 3. We will write a custom essay sample on Financial Analysis Apple Inc. Company Background Apple Inc. The Company offers a range of mobile communication and media devices, personal computing products, and portable digital music players, as well as a variety of related software, services, peripherals, networking solutions and third-party hardware and software products.
The most important of which are enumerated below: Phone — iPhone combines a mobile phone and an iPod, Internet communication device in a single handheld product.
The iMac desktop has design that incorporates display, processor, graphics, storage, and other components in a single enclosure 4. Pod is a flash-memory-based device with a widescreen display, a Multi-Touch user interface.
Apple Inc. Financial Analysis
The Company not only sells to retail and bulk consumers, but also to small and mid-sized businesses, and to educational institutions, enterprises and government customers. The company has almost permanent employees and has the second largest market cap after IBM with about The Company manages business primarily on geographical basis and has segregated the business locations of its customers into the following 1.
The Americas consisting of both North and South America, 2. Europe, Middles East and Africa, 3. Asia-Pacific, Australia and Asian countries and 5. It is to be noted that all the above four segments do not include the retail segment figures and strategy.
The retail segment consists of stores directly opened by the company and managed by it. Competition The products and services offered by the company are a part of highly competitive markets segment it faces stiff and aggressive competition in almost all areas of its business.
The market is characterized by very frequent new product introductions and a rapid technological advancement that has substantial capabilities of use of mobile and related communications devices. However still the company has been able to maintain its market brand values and sees a good and extremely high level of operating cash flows generation.
Financial Analysis Apple Inc.
Stock Price Analysis For our stock price analysis, we consider the time period from 16 Mar — to 6 April — However it is to be noted that the time frame provided here is not ample for a detailed study and an accurate one for future predictions. We first study the movement of the Apple Inc. From the above figure it is clear that the movement of Apple is less volatile than that of the Index. Furthermore in the period under consideration above there seems to be an immediate uptrend developing and sustaining.
This move was probably preempting the Q2 filing by the company which was due later in the next week.
Financial Analysis Of Apple, Inc.
However no serious trend or movement is visible in either of the charts above. We do the same comparison of Apple with its peer HPQ for the same period. The reason being the expectations from the forthcoming Q2 results of Apple, which was an event based movement for Apple, which was absent for HPQ. Now we study the movement of the stock prices on a standalone basis. From the above diagram it is clear that there is no significant or sudden movement in prices or volume of the stock.
However they both show a good trend, and there is not much pressure on the prices of the stock at higher levels which is shown by the build of white candles and an uptrend, which indicates of further upside room present in the stock.
However this seems to be news based event and should be properly traded. In all there are five black and ten white candles, which show an imminent uptrend in the stock price, which is also supported by sustenance in the daily volumes. Risk Return Analysis We now perform a risk return analysis on the stock.
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We use the concepts of CAPM model and data for the period as specified in the above segment and calculate different measures as shown below and abridged in the accompanying excel file. From the above calculations we see that the Beta of Apple is lesser than that of HPQ and more close to 1 which resembles that Apple is less volatile than HPQ and more in tandem with the normal or broad market movement. On the other hand HPQ has a high beta indicating that the movement in prices of HPQ is more volatile and would yield a higher return, either positive or negative, as compared to Apple.
This is also visible in the fact that the Expected return of HPQ is less than that of Apple, which is at least a percentage point or a bps better than HPQ. It is also seen that Apple has been able to give positive returns as compared to HPQ and even the market.
This means that Apple has been able to outperform the market. The reason behind the same is the fact that it is expected that the results of Apple for Q2 are going to be better due to the fact that they have recently launched new products and expanded on existing sales and product line, which would result in better revenue e, margins and sales and net profits, which would ultimately react in the EPS. Hence the returns of Apple are positive and more than that of HPQ.
This indicates the fact that Apple seems to be an underpriced stock and should be bought as it seems to be giving more returns than the expected returns and compared to HPA and the index is an outperformer due to more fundamental reasons likes above expectation performance rather than purely and only technical reasons.
All this is pretty evident in the Beta and the Expected returns of the stock. Annual Report and About Company; Available at http: Apple Competitors; Available at http: