Fluent Essays

In one-two pages answering the following questions: What are three financial facts that you have determined so far in your work in this course that you believe are critical in determining whether to recommend an investment in this company? Justify your answer. At this point, do you think you will end up with a buy, hold, or sell recommendation for your chosen company? Explain your answer.Apendix A Apple .Inc 12 Months Ended Income statement Sep. 25, 2021 Sep. 26, 2020 Sep. 26, 2019 Net sales Cost of sales 365817 274515 260174 Gross margin 212981 169559 161782 Operating expenses: Research and development 21914 18752 16217 Selling, general and administrative 21973 19916 18245 Total operating expenses 43887 38668 34462 Operating income 108949 66288 63930 Other income/(expense), net 258 803 1807 Income before provision for income taxes 109207 67091 65737 Provision for income taxes 14527 9680 10481 Net income 94680 57411 55256 CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions Sep. 25, 2021 Sep. 26, 2020 Sep. 26, 2019 Current assets: Cash and cash equivalents 34940 38016 48844 Marketable securities 27699 52927 51713 Accounts receivable, net 26278 16120 22926 Inventories 6580 4061 4106 Vendor non-trade receivables 25228 21325 22878 Other current assets 14111 11264 12352 Total current assets 134836 143713 162819 Non-current assets: Marketable securities 127877 100887 105341 Property, plant and equipment, net 39440 36766 37378 Other non-current assets 48849 42522 32978 Total non-current assets 216166 180175 175697 Total assets 351002 323888 338516 Current liabilities: Accounts payable 54763 42296 46236 Other current liabilities 47493 42684 37720 Deferred revenue 7612 6643 5522 Commercial paper 6000 4996 5980 Term debt 9613 8773 10260 Total current liabilities 125481 105392 105718 Non-current liabilities: Term debt 109106 98667 91807 Other non-current liabilities 53325 54490 50503 Total non-current liabilities 162431 153157 142310 Total liabilities 287912 258549 248028 Commitments and contingencies Shareholders’ equity: Common stock and additional paid-in capital, 57365 50779 45174 $0.00001 par value: 50,400,000 shares authorized; 16,426,786 and 16,976,763 shares issued and outstanding, respectively Retained earnings 5562 14966 45898 Accumulated other comprehensive income/(loss) 163 -406 -584 Total shareholders’ equity 63090 65339 90488 Total liabilities and shareholders’ equity $ 351,002 $ 323,888 $ 338,516 Apendix B Apple .Inc 12 Months Ended Income statement Sep. 25, 2021 Sep. 26, 2020 Sep. 28, 2019 Net sales 100\% 100\% 100\% Cost of sales 58\% 62\% 62\% Gross margin 42\% 38\% 38\% Operating expenses: Research and development 6\% 7\% 6\% Selling, general and administrative 6\% 7\% 7\% Total operating expenses 12\% 14\% 13\% Operating income 30\% 24\% 25\% Other income/(expense), net 0\% 0\% 1\% Income before provision for income taxes 30\% 24\% 25\% Provision for income taxes 4\% 4\% 4\% Net income 26\% 21\% 21\% CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions Sep. 25, 2021 Sep. 26, 2020 S12 Apple Inc. Financial Statement Analysis Kevin Sessions The University of Arizona Global Campus BUS 401 Principles of Finance Phillip Sarakatsannis August 1, 2022 Apple Inc. financial analysis Part 1: Overview of the company Apple Inc. is one of the leading tech firms not only in the United States but also globally. The company is known for manufacturing smart devices such as smartwatches, smartphones, smart glasses, and computers. It also manufactures software that runs on the mentioned devices (Reuters, 2022). The company currently takes the highest market share of 51\% of mobile and computer devices. Part 2: Income statements The income statements record the income of the company every year. The income statement records the net sales (revenues), operating income, and net sales. Apples revenues have increased over the last three years. It was $ 260, 174, $274, 515, and $ 365, 817 in 2019, 2020, and 2021 respectively. The operating expenses also increased in the last three years. The company recorded $34, 462, $36, 668, and $ 43, 887 in the years 2019, 2020, and 2021 respectively. With the increase in net sales, the net income also increased significantly over the past three years. The company managed to increase. In 2019 the company had $55,256; in 2020, the company had $ 57,411; in 2021, the company registered a net income of $ 94,680. Part 3: Common size income statements The common size income statement is used to determine how each line component in the business affects the companys financial position. The companys gross margin in the last three years has been increasing: it was 38 \% in 2019 and 2020 and 42\% at the end of the 2021 fiscal year. The operating income also increased in the last financial year (2021) compared to the preceding 2020, a drop compared to the 2019 operating margin (Arnold, Ellis, & Krishnan, 2018). The operating margin in the last three years was 30\%, 24\%, and 25\% for 2021, 2020, and 2019 respectively. Part 4: Balance sheets The balance is an important company document that records the organizations assets and liabilities. These are the items that make up the companys capital. Apples total assets have been increasing last two years. The company had $ 251,002 worth of total assets in 2021, an increase from $ 323,880 in 2020 and a decrease from $ 338,516 in 2019. The current assets have, however, dropped in the last three years. The company had $ 162,819, $143,713, $134,836 in the year 2019, 2020, and 2021 respectively. The total liabilities of the company also increased in the last three years. The company had $ 248, 028, $ 258, 549, and $ 287, 912 in the year 2019, 2020, and 2021 respectively. The current liabilities also increased from 105,718 in 2019 to 125,481 in 2021; the current liabilities in 2020 were $ 105,392. The shareholder equity decreased from $ 904,800 million in 2019 to $ 63,090 million in 2021. Part 5: Common size balance sheets The common size balance