Financial Analysis Of Apple, Inc. Essay - 1861 Words

Company Background Apple, Inc. (formerly known as Apple Computer, Inc.) was incorporated in the State of California in 1977. Apple currently designs, manufactures, and markets a variety of computer and personal electronic products, including Macintosh computers, and the iPod digital music player. AppleÕs key markets are consumers, creative professionals, educational institutions, and business users. For nearly twenty years, Apple computers have been the industry standard for creative industries such as publishing, advertising, digital music and video editing, and graphic design. Apple computer and peripheral products include Macbook and Macbook Pro laptops, iMac and Mac Pro desktops, as well a line of flat-panel displays and the†¦show more content†¦In addition to selling itÕs products directly to consumers thru their website, Apple utilizes third-party wholesalers, resellers, and value-added resellers. Apple also runs a retail division, with 165 retails stores in operation at the end of FY2006. Key Financial Ratios FY2006 Valuation Ratios Company Industry Sector SP 500 P/E Ratio 43.70 36.50 30.02 20.73 Beta 1.22 1.38 1.66 1.00 Financial Strength Quick Ratio (MRQ) 2.88 2.29 2.68 1.29 Current Ratio (MRQ) 2.92 2.75 3.23 1.82 LT Debt to Equity 0.00 0.04 0.21 0.51 Total Debt to Equity (MRQ) 0.00 0.05 0.25 0.77 Interest Coverage (TTM) NM 4.74 14.09 13.53 Profitability Ratios Gross Margin (TTM) 31.53 27.63 51.84 44.54 Net Profit Margin (TTM) 12.92 8.46 14.43 13.75 Management Effectiveness Return On Assets (TTM) 17.09 12.40 11.10 8.28 Return On Investment (TTM) 24.58 25.43 15.54 12.25 Return On Equity (TTM) 26.63 36.92 20.34 20.63 Receivable Turnover (TTM) 24.13 14.20 8.17 10.40 Inventory Turnover (TTM) 71.75 58.61 12.85 12.08 Source: Reuters TTM: Trailing Twelve Month MRQ: Most Recent Quarter Financial Ratio Analysis Valuation and Financial Strength Ratios Apple, Inc. currently has a Price-to-Earnings ratio of 43.70, compared to the industry standard of 36.50, and the SP 500 average of 20.73. This indicates that Apple has a lower amount of risk than other firms in the computer manufacturing industry and other firms inShow MoreRelatedFinancial Analysis of Apple Inc.795 Words   |  4 PagesFinancial Analysis (Submitted by) Abstract The following paper aims at discussing the financial position of the American multinational corporation, Apple inc., which designs and markets consumer electronics, computers and personal computers mobile communication devices, and portable digital music and video players, as well as sells various related software, services, peripherals, and networking solutions. Apple Inc. together with subsidiaries sells its products worldwide through its onlineRead MoreFinancial Analysis of Apple, Inc.2114 Words   |  9 PagesCompany Background Apple, Inc. (formerly known as Apple Computer, Inc.) was incorporated in the State of California in 1977. 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