Financial Analysis Report: Apple Inc.

Financial Analysis report

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
a. Company background..............................................................................................................3
b. Trend assessment....................................................................................................................4
c. Ratio analysis..........................................................................................................................6
d. Cash flow statement analysis..................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Financial statement analysis is the process used in evaluating the performance of the
organization based on its financial statements for the purpose of decision-making. This report
provides a detailed analysis of the company Apple Inc, it products and competitors along with
ratio analysis.
a. Company background
Apple Inc. is the company which works on designing and manufacturing and selling the
products like smartphone, computers, tablets, wearables and other accessories related to it. The
company was incorporated in the year 1977 in Califonia.
Products offered by the company are stated below.
 iPhone which is the organization's line of smartphones which is based on macOS
operating system.
 Mac, which the line of computer operated on macOS operating system.
 iPad, it is the multi purpose tablet which uses iPadOS operating system introduced in
2019.
 Wearables, Home and Accessories, it includes Apple TV, Apple Watch, Beats products
and other Apple brands and third party accessories.
Markets
The Apple Inc's customers are mainly the consumers, small and medium-sized
businesses, education, enterprise and government markets. The company sells its products
through its retail and online stores.
Subsidiaries
Following is the list of subsidiaries of Apple Inc.
 Apple Canada Inc., Canada
 Apple Computer Trading (Shanghai) Co., Ltd., China
 Apple Distribution International, Ireland
 Apple Europe Limited, United Kingdom
 Apple France, France
 Apple GmbH, Germany
 Apple Japan, Inc., Japan
 Apple Operations, Ireland

 Apple Operations Europe, Ireland
 Apple Operations International Limited, Ireland
 Apple Pty Limited, Australia
 Apple Sales International, Ireland
 Apple Value Services, LLC, Virginia, U.S.
 Braeburn Capital, Inc., Nevada, US
Risks
 Global and regional economic conditions would have adverse impact over the company's
business operation which will affect its growth as majority of the supply chain and
assembling activities are outside US which depends upon economic conditions.
 Competitive global market in respect to products and services characterized by
aggressive pricing. The success of the company depends upon the continuous and timely
introduction of innovative and creative products.
 The major risk is that the company depends upon performance of its retailers, carriers,
resellers and wholesalers as they are in direct contact with the customers.
 Future of the organization depends upon the support received from the third party
software developers.
Competition
The company's products and services are highly competitive and is confronted by
aggressive competition. Most of the competitors sell out smart phones and computer devices and
other electronic devices on other operating devices with very low cost structure. The company is
facing tough competition from competitors having significant resources and experience.
b. Trend assessment
The below table shows the trend analysis of Apple Inc based on which it can be said that
There has been fluctuation in net sales taking 2017 as the base. In 2019 there was increase in cost
of sales which resulted into decrease in gross margin (Vaca-Tapia and et.al, 2018). There is a
drastic fall in the change in operating income as it was 15.57% in 2018 which then reduced to
4.22% in 2019.
CONSOLIDATED STATEMENTS OF OPERATIONS
Years ended