1. Apple Inc.
Company Analysis

2. Table of Contents Apple Revenues Chart Apple Horizontal Analysis
Apple Vertical Analysis
Apple Performance Ratios
Invesment conclusion

3. Apples Earnings 2011 through 2013

4. Apple Earnings 2011 through 2013
Revenues are increasing constantly albeit at a slower rate from to 2013.
A further inspection of the companies financial statements reveals much more detail.

5. Apple Inc. Performance Ratios
Performance ratios are comparisons of different values within the company that give a bigger picture of the liquidity, solvency, growth, and efficiency of a company regardless of its size. They will be referred to and explained in greater detail later in the presentation to provide further evidence of conclusions drawn from the vertical and horizontal analysis.
Performance Ratios
September
September
working capital
$ ,628
$ ,111
current
1.68
1.50
acid test $ $
inventory turnover
average inventory
$ ,277.50
$ ,277.50
account rec. Turnover
0.070
0.077
average account rec.
$ ,016.00
$ ,016.00
days of sales outstanding
days in inventory
0.012
0.015
avg inventory
fixed asset turnover
1.278
1.322
total asset turnover
0.8257
0.8889
debt ratio
0.4031
0.3286
times interest earned
equity multiplier
gross profit margin
38%
44%
operating profit margin
29%
35%
net profit margin 2%
27%
ROE
30%
ROA
average total assets
$ ,532.00
$ ,532.00

6. Apple Vertical Analysis of Balance Sheet
% of total assets
September
September
cash and cash equivalents
6.9%
significant
6.1%
short term marketable securitites
12.7%
10.4%
accounts receivable, less allowances of $99 amd 98$ respt.
6.3% -
6.2%
inventories
0.9%
0.4%
deferred tax assets
1.7%
1.5%
vendor non-trade receivables
3.6%
4.4%
other current assets
3.3%
3.7%
total current assets
35.4%
32.7%
long term marketable securities
51.3%
52.3%
property, plant and equipment, net
8.0%
8.8%
goodwill
0.8%
0.6%
acquired intangible assets, net
2.0%
2.4%
other assets
2.5%
3.1%
total assets
100.0%

7. Apple Vertical Analysis
Significant changes in capital structure of Apple Inc.:
Values represent percentage of total sales
/ /12 /11
COGS       %   56% 60%
Operating Income   29% %  31%
Net income     % % 24%
Apple was most efficient in collecting income in It had a low cost of goods as well as a high income after operational costs were factored in. The company also managed to collect the most profit relative to its net sales.

8. Apple Horizontal Analysis
 %increase
Net Sales 9%
45%
COGS
21%
36%
Gross Margin
-6%
57%
Operating Expenses
Research and Developement
32%
39%
Selling, general and administrative
941%
-86%
Total operating expenses
14%
34%
Operating Income
-11%
63%
Other Income/(expense), net
121%
26%
Income before provision for income taxes
-10%
Provision for income taxes
-7%
69%
Net income
61%
Earnings per share
Basic
59%
Diluted
60%
Shares used in computing earnings per share
-1% 1%
diluted
Cash dividends declared per common share
330%
See full statement analysis

9. Apple Horizontal Analysis continued
The most notable changes in absolute terms in Apple’s income statement are:
Relatively consistent increase in production costs
A significantly smaller increase in sales compared to production costs signaling that the company is taking on more cost while gaining less revenue
See Performance ratios

10. Conclusion
The company is healthy and is well suited for safe investment See full invesment report