Analysis of Apple's Statement of Cash Flows

Apple Cash Flow Analysis
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Apple Cash Flow Analysis
The Apple Company is involved in the manufacture and supply of phones and laptops as well as other accessories. The company has the highest revenue compared to all the other companies in the industry of technology. Apple is globally recognized mostly for its smartphone product that sells in all the countries in the world. The company has its headquarters in the United States but has its branches across the globe. The financial analysis of the company shows that there has been a steady rise in cash flows for the past twenty years and the only year that did not show increase was in 2019 whereby the cash flow for 2018 was higher than in 2019 (Alaimo, 2022). All the other financial years saw an increase in cash flow. The study of the apple’s cash flow trend is important to determine the future expenses and also helps in allocating budget for cost of production and distribution. We would be able to ascertain the amount of cash that was used in covering the cost of sales.
The cash flows from operating activities will enable us to know the future growth of the company and the going concern. From the last financial quarter, the company saw an increase in operating cash flows to $122.151billion which is a 17.41% increase from the previous financial quarter. An analysis of the cash flows for the last twelve months shows that operating activities was at $342.273billion which translates to an 18.28% increase from last year. Some of the main operating activities of Apple Company include the net income which is derived from the income statement, amortization, and depreciation and lastly accounts payable (Alaimo, 2022). The company does not have accounts receivable since most of its products are sold to end users from its branches. Other individuals who would want to sell the apple products need to purchase the products in full rather than on credit. The net income generated from sale of Apple products was 23% higher in this financial year compared to the last financial year. The growth in income can be attributed to innovation of new products in the market which makes its customers want to get the latest trending phones and laptops regardless of its price. There is a slight increase in depreciation and amortization from $10.9billion in 2021 to $11.1billion in 2022 and could be attributed to purchas...