Financial Analysis: Apple 5 Year Report 2011 - Present

 


Apple 5 Year Report 2011-Present


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 Financial management of Apple, Inc
            The financial performance of Apple, Inc has improved in the last five years, but the company has faced stiff competition from East Asian companies. Even though, the company uses premium pricing, cheaper alternatives have reduced the company’s market share in tablet, Smartphone and computer market. The net income in the year ended September 24, 2016 was 45,687 million, while in the year ended 2015 it was $ 53,394 million (SEC, 2016).  Even as the net income increased from 2011 to 2012 it reduced the year 2012 to 2013. The net sales in 2016 were lower than 2015 similar to the net income from $233,715 million to 215,639 million (SEC, 2016). In the last five years the highest basic EPS was in the 2015 financial year at $9.28 compared to $ 8.35 in the year ended 2016 (SEC, 2016).


Assessment of Apple's stock


Apple, Inc stock has fallen in the past moths as the earning forecasts fell below the expectations, but focusing on the cash flow the company will likely report strong earnings (Market Line, 2016). The increase in additional cash flow under the current CEO Tim Cook has been modest compared.  Nonetheless, Apple may diversify some of the operations, since there have been callas for tech companies to repatriate earnings back into the U.S. Apple is well renowned for its innovation and this will improve the company’s ability to compete (Market Line, 2016). As such, investors should hold onto the Apple stocks. As at 23^rd September 2016 the share price was $ 112.71, one day before the company reported the financial statements, compared to $ 114.71 the previous financial year (Nasdaq.com).  The main drivers of the stock price are the market dynamics, the company’s liquidity position and the incremental information provided. On the other hand, the drivers of value are related to the quality of growth and the cash flows generated.

Date	Share price ($)
9/23/2011	57.7571
9/28/2012	95.3007
9/27/2013	68.9643
9/26/2014	100.75
9/25/2015	114.71
9/23/2016	112.71

 


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