Financial Analysis Apple Essay

Submitted By calvin-yechi
Words: 569
Pages: 3

I. Introduction 3
II. Financial Analysis for Apple 4
1. Common-Size Analysis for Apple 4
2. Financial Ratios Analysis for Apple 6
III. Comparative Financial Analysis of Apple and Google 12
1. Common-Size Analysis for Google 12
2. Compare the Common-Size Analysis of Apple and Google 14
3. Financial Ratios Analysis for Google 17
4. Compare Financial Ratios Analysis of Apple and Google 17
IV. Conclusions and Recommendation for Investment 21
References 22

I. Introduction
1. Apple, Inc. Apple, Inc. was established in Cupertino, California on April 1, 1976 and incorporated January 3, 1997. The company is a multinational corporation that designs and manufactures consumer electronics and computer software products. The company operates more than 250 retail stores in nine countries and an online store where hardware and software products are sold.

2. Google, Inc.
Google, Inc. was incorporated on September 4, 1998. The company is a global technology company, and the company’s business is focused around areas, such as search and display advertising , the Android operating system platform, consumer content through Google Play, enterprise, commerce and hardware products, The company provides its products and services in more than 100 languages and in more than 50 different formats.

II. Financial Analysis for Apple
1. Common-Size Analysis for Apple
a. Comparative Common-Size Income Statement Exhibit 2-1: Common-Size Income Statement --- Apple, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
Income statement
For the year ended September 27, 2014 and 2013
(Dollars in million) 2014 percent of total
2013
percent of total
Net sales
$182,795
100.0
$170,910
100.0
Cost of sales
112,258
61.4
106,606
62.4
Gross margin
70,537
38.6
64,304
37.6
Operating expenses:

0.0

Research and development
6,041
3.3
4,475
2.6
Selling, general and administrative
11,993
6.6
10,830
6.3
Total operating expenses
18,034
9.9
15,305
9.0
Operating income
52,503
28.7
48,999
28.7
Other income/(expense), net
980
0.5
1,156
0.7
Income before provision for income

taxes
53,483
29.3
50,155
29.3
Provision for income taxes
13,973
7.6
13,118
7.7
Net income
$39,510
21.6
$37,037
21.7

XXXXX
b. Comparative Common-Size Balance Sheet
Exhibit 2-2: Common-Size Balance Sheet --- Apple, Inc.
Apple, Inc.
Consolidated Balance Sheet
September 27, 2014 and 2013
(Dollars in millions)

2014
Percentage
2013
Percentage
ASSETS:

Current assets:

Cash and cash equivalents
$13,844
6.0
$14,259
6.9 Short-term marketable securities
11,233
4.8
26,287
12.7 Accounts receivable
17,460
7.5
13,102
6.3 Inventories
2,111…