The following analysis uses financial ratios, capital structure and management information, and financial history to determine whether Apple is a company worth investing in, or if it has areas in which it is deficient that cause it to be unfit for investment at this time by getting this information, I will talk about a little of everything from Apple Inc. auditors report financial statements, ratios risk factors, management discussions on the company, their competition and much more.
When it comes to apple financial statement for their products, Apple’s products and services were $80.5 billion in 2012. Compare to 2011 Apple products and services increased by $33.4 billion or 71%in 2012. iPhone unit sales itself totaled 125.0 million during 2012 The year-over-year growth in iPhone net sales and unit sales during 2012 reflects strong demand for iPhone in all of the Company’s operating segments, which is primarily a result of the launches of iPhone 4S in the first quarter of 2012 and iPhone 5 in the fourth quarter of 2012, ongoing demand for iPhone 4 and iPhone 3GS, and expanded distribution with new carriers and resellers. Net sales of iPhone and related products and services were 51% and 43% of the Company’s total net sales for 2012 and 2011.
Financial analysts use ratios as a fast and effective way of evaluating a firm’s performance. APPLE’S ability to meet its short-term responsibly such as paying its creditors, buying raw materials for production and much more. It also serves as an indication of a company's relative efficiency. It is calculated by dividing current assets by current liabilities. By dividing current assets by current liabilities, you will get Apple’s current ratio which is 1.79 as of march 2013 and 1.54 in 2012 (Q4).
Although Apple is a good and successful company, Apple also faces plenty of potential risks. It is not an issue with apple staying in competition with its competitors. A little before Christmas of 2012, Apple released their iPhone 5 and their new MacBook which isn’t a major threat to their company. This issue is another that has surfaced in a big way. In the news lately has been a developing story about the underage workers and working conditions at some of the production facilities where assembly of Apple products takes place. Risk like this, can cause apple to have a lawsuit which can decrease their revenue. In the presidential debate between Obama and Romney, Apples’ outsourcing has been brought up several times as well.
Apple has many completions with other business such as, Concurrent Computer Corporation (CCUR), Cray Inc. (CRAY), Dell (DELL), Hewlett-Packard Company (HPQ) and much more. When looking at apples competition, I realize that most of these companies are falling. Most of these companies have a negative net change which is bad. These companies that are in competition with APPLE Inc. are very good successful businesses however, APPLE has a competitive advantage that forces them to stay on top of their competition. Apple's designs are, well, stylish compare to other PC’S., Apple also has the best-designed hardware from any vendors point of view. It is amazing after years and years of hard work, Apple’s competition such as Concurrent Computer, Cray, Dell, HP and much more has not been able to design a better hardware than APPLE. Therefore this is one of the reasons APPLE is ahead of their competition with a market cap of 422,557,318,840. APPLE’s last sales were $449.98 with a…