Financial Statement Analysis and Ethical Issues Faced by Apple Inc

Running head: MANAGERIAL FINANCE
Managerial finance
Name of the company
Name of the university
Author note

1MANAGERIAL FINANCE
Table of Contents
Section 1 - Financial statement analysis of Apple Inc.....................................................................2
Section 2 – Issued faced by Apple Inc.............................................................................................3
Section 3 – Ethical issues faced by Apple Inc and responses..........................................................4
Reference.........................................................................................................................................6

2MANAGERIAL FINANCE
Founded in 1st April 1976, Apple Inc is the designing and manufacturing company for
computer software, hardware, and different types of electronic goods for the customers. Various
products and services that the company deals with are the iPhone, Mac OS, iCloud, iOS, support
offerings, accessories and wide range of other product and services.
Section 1 - Financial statement analysis of Apple Inc
Apple’s financial statement analysis includes general comparison for the major financial
factors and the ratio analysis that can provide the in-depth analysis of the financial performance
and its impacts on company (Brochet, Jagolinzer & Riedl, 2013). The major influencing factors
of the financial statement are the operating profit, revenues, cost of sales, earnings per share and
net profit (Gallagher, 2013). The financial statement of Apple Inc includes consolidated
statements of operations, consolidated statements of comprehensive income, consolidated
balance sheet and consolidated statements of the shareholders equity. Looking at the financial
performance of Apple Inc. it can be recognized that the the financial results of the company are
quite strong as the net income of the company for all the 3 years that is 2015, 2016 and 2017 are
positive and have increased from $ 45,687 in 2016 to $ 48, 351 in 2017 (Weygandt, Kimmel &
Kieso, 2015).
Further, if the ratio of the company are analysed based on the financial statements, it
reveals the following –
Ratio Formula 2016 2017
Price earnings ratio Share price/Earnings
per share
115.59/8.57
= 13.49
172.50/9.42
= 18.32
Net profit margin Net income/Net 45687/215639*100 48351/229234*100