Accounting 2: Analysis of Apple Inc. for Potential Investors - Report

This report provides a financial analysis of Apple Inc., focusing on key aspects relevant to potential investors. It begins with an introduction to the importance of understanding a company's fundamentals before investing. The analysis covers the financial basics, including revenue and net income, highlighting growth trends and financial metrics. It then examines Apple's capital return program, including dividend payouts and free cash flow generation. Finally, the report breaks down Apple's business segments, emphasizing the diversification of its revenue streams. The report references sources like the US Securities and Exchange Commission and academic publications to support its findings, providing investors with a comprehensive overview of Apple's financial health and investment potential. The information is designed to help investors make informed decisions about investing in Apple Inc.

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Accounting
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ACCOUNTING 2
Introduction
Before investing his or her hard earned money on a company, an investor should know
the particulars of any business. For example, it is important to know the solid plan for the
business (Apple.Inc) and its operations. There are some business fundamentals that that an
investor should be aware before investing in Apple.Inc (NASDAQ:AAPL). Here are some of
the fundamentals:
The financial basics
According to Edgars report in US Security and exchange commision the financial
basics means the financial part or aspects of the company. In FY ended 2017, the company’s
revenues was more than $229.2 billion which represented a net growth of more than 13.6%
from the previous financial year. The company’s net income stood at $ 48.4 Billion in that
year also representing a growth of 6% over the year. This is a very good prospect and an
indication that the company is on a growth trajectory therefore the investor can invest in the
stock. The financial metrics for Apple shows an expected increase in revenue in subsequent
years making it safe for an investor to invest (Benoit, 2018).
Capital return program
Apple.Inc generates cash flow that is substantial. Over the last 12 months, the
company generated an impressive $58.55 billion in free cash flow or $ 11.88 per share. Under
its current leadership of Tim Cook, the company pays quarterly dividends of $ 0.75 per share.
This represents an annual dividend payout of $2.95 per share and a dividend yield of 1.3%.
its annual dividend payout is approximately $13 Billion dollars making it an attractive
company for any investor (Miller, & Maxwell, 2016).
Business break down

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Finally, its important for an investor to breakdown the business the company is
engaged in. Apple business segment from sales to music streams lines makes it more
lucrative (Nawrocki, 2018)..

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References
Benoit, D. (2018). iPhones and children are a toxic pair, say two big Apple investors. The
Wall Street Journal, A1.
Miller, T., & Maxwell, R. (2016). Apple. In Global Media Giants (pp. 383-396). Routledge.
Nawrocki, T. (2018). The Efficiency of Investing in Shares of Innovative Companies–the
Case of Investment Funds Available in the Polish Market. Zeszyty Naukowe Wyższej
Szkoły Bankowej w Poznaniu, 79(2), 137-153.