MGT 521 Management
Business Analysis Part II
Company Financial Health
When reviewing the financial summary of Apple, I learned a lot of things about their financial health. The health of the financial company continues to increase due to the fact that they’re such a big international company. Apple announced that their net profit for Q3 of 2012 was $8.8 billion (Apple.com). Compared to the net profit this time last year, there has been an increase of over $1 billion.
I reviewed each of the cash flows, balance sheets, and income statements of Apple and two other companies in the same business as Apple, to see how company was doing compared to some of the competitors in this market. I chose to compare Apple to Dell and Hewlett-Packard. Each of the other companies has also had a 1% increase in their revenue as well. Hewlett-Packard had a net income of over $29.7 billion (Hewlett-Packard.com). Dell had a net income of $893 million (Dell.com). Apple had a net income of $8,824 million (Apple.com).
When reviewing the statements from each of the companies, there weren’t things that really concerned me, because overall all three companies have been very successful. However moving forward, each of the companies needs to use these quarterly results to see what they can do so that their company can maintain their financial status. The sales overall for each of the companies were very successful, but there are areas that each of the companies should review and strategize on because this is a very competitive market.
The financial health of Apple is very promising. Although it was only about a thousand product increase, out of the three companies, Apple is the only one that has had any type of increase in the PC sales. Apple set a record for MAC sale to U.S. educational institutions for the quarter (macworld.com). Apple has made a huge success this quarter off their sale with iPad’s. But Hewlett-Packard is now restructuring because of the decrease in sales. Hewlett-Packard, a company that employs over 300,000 people worldwide, has decided to restructure and will make layoffs of up to 9,000 employee’s by October (Beta.fool.com). This lay off will give the company a savings of over $3 billion. The Apple Company may not have mad as much this quarter as Hewlett-Packard, the company is still on the rise and has a very promising future.
The Apple Company is making very smart decisions concerning the technology world within its consumer market. Apple made a press release in June of 2012 that the will be launching iTune stores in Hong Kong, Singapore, Taiwan, and nine other countries in Asia (Apple.com). Apple now increasing their sales in other countries, Hewlett-Packard is currently experiencing a decrease in revenue for this 2012 Q3. Their sales in the Asian Pacific have gone down 7% (Hewlett-Packard.com). I was unable to find any accurate numbers to any sales that Dell had made with customers around the world. Dell is just now beginning to bring their customer service to the U.S. because of the many complaints that several customers have had with out of country customer service (Dell.com). Although the Apple Company is very successful in having their consumers by their products worldwide, Dell and Hewlett-Packard are known for being able to sell their products to businesses. For example since Dell is down in sales, they are taking advantage of different technology of college students and offering an Xbox with the purchase of a computer (Dell.com). Hewlett-Packard has different technology advantages in some areas as well. They have more of a product line. Hewlett-Packard sell printer, printer ink and various supplies the offices buy. Although both companies had drops in sale compared to the Apple Company, but are using different technology advancements to compensate for the success that the Apple Company is currently having selling their products