Financial Analysis of Apple Inc. - Performance and Investment

This report provides a comprehensive financial analysis of Apple Inc., evaluating its performance using various financial and non-financial indicators. The analysis includes a detailed examination of key financial ratios such as debt ratio, return on assets, accounts receivable turnover, and inventory turnover, comparing them with industry averages to assess the company's financial health and identify areas for improvement. The report also considers non-financial factors like brand reputation, competitiveness, and innovation. It assesses Apple's growth, profitability, and liquidity, concluding that Apple Inc. presents a good investment opportunity due to its strong market position, consistent revenue growth, and innovative product offerings. The analysis references several academic sources to support its findings and conclusions.

Apple Inc.
In the present case, the company has been analyzed from different parameters by analyzing ratios
of past two years and comparing these ratios with industry averages so that differences can be
known and possible action can be taken so as to correct the position of the company. The
different ratios that have been used for the purpose of analysis are Debt ratio, Return on assets,
Accounts Receivable Turnover, Inventory turnover, Leverage ratio, gross profit margin etc. so
that the position of the company can be analyzed whether the company is earning sufficient
profits or the dependent of the company on outside funds is more or less because it helps in
analyzing the financial position of the company.
The indicators that have been used for the purpose of the investment in the company are the
financial indicators and non-financial indicators that help in analyzing the company for the
investment purpose while the financial indicator include analyzing the company on the basis of
growth whether the company sales as well as expansion of business has been increased in the
past years overall in terms of diversion of products , business expansion in terms of area at
which it renders the service etc. which in the present case in Apple Inc. has been seen that the
growth of the company is substantial as both the revenue and product diversion has increased
over the years which shows that the company in phase of growth which is a good option for the
purpose of investment. The other factor which is to be considered is profitability of the business
which is to be analyzed whether the operations of the business provide profitability to the
business and whether the profits in the past years have been increased or decreased from the
operations and whether the profits earned by the company is compared to the similar companies
so as to compare the profits earned and analysis whether the profits are reasonable or not and to
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check the trend of the profits of the company whether it is increasing or decreasing for the
purpose of investment in the company.
The factors which should be considered along with above mentioned factors are liquidity of the
company whether the company has sufficient funds to meet its short term obligation of the
company which can be analyzed by preparing the cash flow statement which shows that whether
the company is having cash surplus/deficit from the operation of the company in a particular
period which shows the liquidity position of the company whether there are sufficient funds or
not for the operations of the company and other points which should be considered are whether
the company is earning sufficient return on the assets employed in the company which should be
calculated by return on assets ratio and should be compare of different years so as to analyze the
return for the purpose of analyzing the efficiency of the company which in the present case of
Apple Inc. has been analyzed that the company is providing higher return on the assets of the
company as compared to the industry average so for the purpose of the investment it can be said
that it a good option for the purpose of the investment in the company.
The factors which should be considered along with financial indicators are non financial
indicators which indicate the measure which cannot be measured in terms of money but are
relevant for the purpose of investment in the company which is company reputation in the
market in terms of its product its quality and value which in the present case of Apple Inc. has
been analyzed that the company enjoys a high reputation in terms of its product and technology
and has a significant share in the market and which is increasing day by day and which can be a
good option for the purpose of investment in the company.
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The competitiveness of the company plays an important role in analyzing the position of the
company in the market whether the company is able to influence the market according to its
decision and demand of the product can be affected due to the decision taken by the company
and which in the present case of Apple Inc. can be said that the company enjoys a high
competitive edge in the market because of its product and services and has been able to influence
the demand of the public according to its innovation in the field of product and services so it a
good factor in the favor of the company for the purpose of the investment. The non financial
factor for the purpose of analysis include innovation which states whether the company has a
capability to introduce a new product and service according to changing needs of the customers
and able to ensure whether the company is able to maintain its position in the market in the ever
changing environment and which in the present case of Apple Inc. has been that the reputation of
apple in the market is because of innovative technology in the product and services it renders to
its customer which will increase the customer satisfaction and it leads to the favorable in the
demand of the product and services it renders. The customer retention capability can also be seen
for the purpose of analyzing whether the company is able to retain its customer on the basis of its
service and quality of the product it renders to the customer and the customer who has invested
in the product and service of the company are able to keep the trust of the customer and what
steps the company are taking in this which will stabilize the customer which in case of Apple
Inc. has been that the Apple is trying all the major steps which should be taken in order to
stabilize the customer of the product and its services by making available them the best updated
technology to its customer for the purpose of the utilization.
So on the basis of above analysis of Apple Inc. in terms of financial indicators and non financial
indicators it can be say that the Apple Inc. has been a good choice for the purpose of investment
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as by analyzing we concluded that the company in the past years has increased its market share
and revenue and in the current scenario it is among the top companies of the world and which
will provide a fair return to the investor of the company. As most of the points of analyzing
states the company performance in the past year has achieved a milestone and which has been
conclude on the basis of ratio analysis in which company ratios has been compared with industry
average ratio which will be act as benchmark for comparison and concluding the decision on the
financial effectiveness of the company which in the present case of Apple Inc. has been analyzed
by comparing different ratios with industry averages and most of the ratios are in favor of
company which shows the financial performance of the company. The company is technology
oriented so as to keep its position in market it has to keep itself updated and increasing the utility
of the company so that it satisfies the ever increasing consumer needs and so the company in
order to maintain the position in future has to keep itself updated and by innovating different
products and services on the basis of demand of the customer and so at present it is good option
for the purpose of the investment.
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Journal of Business Communication, 53(4), 375-397.
Osadchy, E. A., Akhmetshin, E. M., Amirova, E. F., Bochkareva, T. N., Gazizyanova, Y. Y., &
Yumashev, A. V. (2018). Financial statements of a company as an information base for decision-
making in a transforming economy. European Research Studies Journal, 21(2), 339-350.
Robinson, T. R., Henry, E., Pirie, W. L., & Broihahn, M. A. (2015). International financial
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Stuart, E. (2017). Whether or Not to Bite the Apple: Some Implications of the August 2016
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