apple company's financial analysis
TRANSCRIPT
TIM
COOK
Apple Inc. is engaged in designing, manufacturing and marketing mobile communication and media devices, personal computers, and portable digital music players.
Apple Inc.’s (NASDAQ:AAPL) new $5 Billion spaceship-shaped global headquarters in Cupertino, known imaginatively as Apple Campus 2.
The $5 billion project is due for completion in 2016 and will include one of the largest photovoltaic arrays in the world.
FINANCIAL STATEMENTS
REPORT2012-2014
BALANCE SHEET
Period Ending:September 27,
2014September 28,
2013September 29,
2012
CURRENT ASSETS
Cash and Cash Equivalents
$13,844,000 $14,259,000 $10,746,000
Short- Term Investments
$11,233,000 $26,287,000 $18,383,000
Net Receivables $31,537,000 $24,094,000 $21,275,000
Inventory $2,111,000 $1,764,000 $791,000
Other Current Assets $9,806,000 $6,882,000 $6,458,000
Total Current Assets $68,531,000 $73,286,000 $57,653,000
LONG-TERM ASSETS
Long-Term Investments
$130,162,000 $106,215,000 $92,122,000
Fixed Assets $20,624,000 $16,597,000 $15,452,000
Goodwill $4,616,000 $1,577,000 $1,135,000
Intangible Assets $4,142,000 $4,179,000 $4,224,000
Other Assets $3,764,000 $5,146,000 $5,478,000
Deferred Asset Charges $0 $0 $0
Period Ending:September 27,
2014September 28,
2013September 29,
2012
CURRENT LIABILITIES
Accounts Payable $48,649,000 $36,223,000 $32,589,000
Short-Term Debt /
Current Portion of
Long-Term Debt
$6,308,000 $0 $0
Other Current
Liabilities$8,491,000 $7,435,000 $5,953,000
Total Current
Liabilities$63,448,000 $43,658,000 $38,542,000
LONG TERM LIABILITIES
Long-Term Debt $28,987,000 $16,960,000 $0
Other Liabilities $24,826,000 $20,208,000 $16,664,000
Deferred Liability
Charges$3,031,000 $2,625,000 $2,648,000
Misc. Stocks $0 $0 $0
Minority Interest $0 $0 $0
Period Ending:September 27,
2014September 28,
2013September 29,
2012
STOCKHOLDERS’ EQUITY
Common Stocks $23,313,000 $19,764,000 $16,422,000
Capital Surplus $0 $0 $0
Retained Earnings $87,152,000 $104,256,000 $101,289,000
Treasury Stock $0 $0 $0
Other Equity $1,082,000 ($471,000) $499,000
Total Equity $111,547,000 $123,549,000 $118,210,000
Total Liabilities &
Equity$231,839,000 $207,000,000 $176,064,000
INCOME STATEMENT
Period Ending:September 27,
2014September 28,
2013September 29,
2012
Total Revenue $182,795,000 $170,910,000 $156,508,000
Cost of Revenue $112,258,000 $106,606,000 $87,846,000
Gross Profit $70,537,000 $64,304,000 $68,662,000
OPERATING EXPENSES
Research and
Development$6,041,000 $4,475,000 $3,381,000
Sales, General and
Admin.$11,993,000 $10,830,000 $10,040,000
Non-Recurring
Items$0 $0 $0
Other Operating
Items$0 $0 $0
Operating Income $52,503,000 $48,999,000 $55,241,000
Add'l
income/expense
items
$980,000 $1,156,000 $522,000
Earnings Before
Interest and Tax$53,483,000 $50,155,000 $55,763,000
Interest Expense $0 $0 $0
HORIZONTAL ANALYSIS
2014 2013 2012
ASSETS
CURRENT
ASSETSIn Value In % In Value In % In Value In %
Cash and cash
Equivalents(415,000) (2.91%)
3,513,000
32.69% 931,000 9.49%
Short-term Investments
(15,054,000)
(57.27%)
7,904,000
43%2,246,00
013.92%
Net
Receivables7,443,000 30.89%
2,819,000
13.23%7,544,00
054.94%
Inventory 347,000 19.67% 973,000 123% 15,000 1.93%
Other Current
Assets2,924,000 42.49% 424,000 6.48%
2,019,000
44.58%
Total Current
Assets
(4,755,000
)(6.49%)
15,630,000
27.12%12,665,0
0028.15%
NON-CURRENT ASSETS
Long-term
Investments
23,947,0
0022.55%
14,093,000
15.30%36,514,0
0065.63%
Fixed Assets4,027,00
024.26%
1,145,000
7.41%7,675,00
098.68%
Goodwill3,039,00
0
192.71%
442,000 38.94% 239,000 26.67%
Intangible Assets (37,000) (0.89%) (45,000) (1.07%) 688,000 19.46%
Other Assets(1,382,00
0)
(26.86%)
(332,000) (6.06%)1,922,00
054.05%
Total Assets24,839,0
0012%
30,936,000
17.57%59,693,0
0051.30%
2014 2013 2012
2014 2013 2012
Liabilities
Current Liabilities In Value In % In Value In % In Value In %
Accounts Payable12,426,0
0034.30%
3,634,000
11.15%
8,710,000 36.48%
Short-term Debt 6,308,000 - - - - -
Other current
liabilities1,056,000
14.20%
1,482,000
24.90%
1,862,000 45.51%
Total Current
Liabilities
19,790,00
0
70.91%
5,116,000
13.27%
10,572,000
37.80%
Non-current Liabilities
Long-term Debt12,027,0
0070.91%
16,960.000
- - -
Other Liabilities4,618,00
022.85%
3,544,000
21.27%
6,564,000 64.99%
Deferred LiabilityCharges
406,00015.47%
(23,000)(0.87
%)962,000 57.06%
Total Liabilities 36,841,000
44/15%
25,597,000
44.24%
18,098,000
45.52%
2014 2013 2012
Shareholders
’ EquityIn Value In % In Value In % In Value In %
Common
Shares3,549,000 17.96%
3,342,000
20.35%3,091,00
023.19%
Retained Earnings
(17,104,000)
16.41%2,967,00
02.93%
38,448,000
61.18%
Other Equity 1,553,000(329.72%
)(970,000
)(194.39%
)56,000 12.64%
Total Equity(12,002,00
0)(9.71%)
5,339,000
4.52%41.595,0
00100%
TREND ANALYSIS
2014 2013 2012
CURRENT ASSETS
Cash and cash Equivalents
129% 133% 100% Base Year
Short-term Investments
61% 143%
Net Receivables 148% 148%
Inventory 267% 223%
Other Current Assets 152% 107%
Total Current Assets 119% 127%
NON-CURRENT ASSETS
Long-term
Investments141 % 115%
Fixed Assets 133% 107%
Goodwill 407% 139%
Intangible Assets 98% 99%
Other Assets 69% 94%
Deferred Asset
Charges- -
Total Assets 132% 118%
2014 2013 2012
2014 2013 2012
CURRENT LIABILITIES
Accounts Payable 149.28% 111.15%
Short-Term Debt - -
Other Current
Liabilities142.63% 124.90%
Total Current
Liabilities164.62% 113.27%
LONG TERM LIABILITIES
Long-Term Debt - -
Other Liabilities 149% 121.30%
Deferred Liability
Charges114.46% 99.13%
Misc. Stocks - -
Minority Interest - -
Total Liabilities 207.92% 144.24%
2014 2013 2012
SHAREHOLDER’S EQUITY
Common Stocks 141.96% 120.35%
Capital Surplus - -
Retained Earnings 86.04% 102.93%
Treasury Stock - -
Other Equity 216.83% (94.39%)
Total Equity 94.36% 104.52%
VERTICAL ANALYSIS
2014 2013 2012
CURRENT ASSETS
Cash and cash Equivalents
5.97 6.89 6.10
Short-term Investments
4.85 12.70 10.44
Net Receivables 13.60 11.64 12.08
Inventory 0.91 0.85 0.45
Other Current
Assets4.23 3.32 3.67
Total Current
Assets29.56% 35.40% 32.75%
NON-CURRENT ASSETS
Long-term
Investments56.14 51.31 52.32
Fixed Assets 8.90 8.02 8.78
Goodwill 1.99 0.75 0.64
Intangible Assets 1.79 2.02 2.40
Other Assets 1.62 2.49 3.11
Deferred Asset
Charges- - --
Total Assets 100% 100% 100%
2014 2013 2012
2014 2013 2012
CURRENT LIABILITIES
Accounts Payable 20.98 17.50 18.51
Short-Term Debt 2.72 - -
Other Current
Liabilities3.66 3.59 3.38
Total Current
Liabilities27.37% 21.09% 21.89%
LONG TERM LIABILITIES
Long-Term Debt 12.50 8.19 -
Other Liabilities 10.71 9.76 9.46
Deferred Liability
Charges1.31 1.27 1.50
Misc. Stocks - - -
Minority Interest - - -
Total Liabilities 51.89% 40.31% 32.86%
2014 2013 2012
SHAREHOLDER’S EQUITY
Common Stocks 10.06 9.55 9.33
Capital Surplus - - -
Retained Earnings 37.59 50.37 57.53
Treasury Stock - - -
Other Equity 0.47 0.23 0.28
Total Equity 48.11% 59.69% 67.14%
Total Liabilities and Equity
100% 100% 100%
RATIO LIQUIDITY
2014 2013 2012
Net Working Capital
5,083,000 29,628,000 19,111,000
Current Ratio 1.08 1.68 1.50
Quick Ratio 1.05 1.64 1.48
ACTIVITY RATIO/ ASSET UTILIZATION RATIO
2014 2013 2012
AccountsReceivable Turnover
6.57 7.53 8.94
Average Collection
Period54.79 47.81 40.27
Inventory Turnover
57.94 83.45 112.12
Average Age of Inventory
6.21 4.31 3.21
Operating Cycle
61 52.12 43.48
Fixed Asset Turnover
8.86 10.30 10.13
Total Asset Turnover
0.79 0.83 0.89
2014 2013 2012
Debt Ratio 0.52 0.40 0.33
Debt/ Equity Ratio
1.08 0.68 0.49
Times Interest Earned
- - -
LEVERAGE/ DEBT UTILIZATION RATIO
2014 2013 2012
Gross Profit Margin
39% 38% 44%
Profit Margin 22% 22% 275%
Return on Asset
83% 89% 107%
Return on Equity
35% 30% 35%
PROFITABILITY RATIO
Company (2014) Industry Averages Evaluation
Return on Asset 83% 15.13% Better
Return on Equity 35% 29.17% Better
Current Ratio 1.08 1.57 Worse
Quick Ratio 1.05 1.51 Worse
Fixed Asset Turnover
8.86 - -
Total Asset Turnover
0.79 0.75 Better
Debt Ratio 0.52 - -
Debt/Equity Ratio 108% 32.75% Better
InventoryTurnover
57.94 44.42 Better
AccountsReceivable Turnover
6.57 11.75 Worse
Average CollectionPeriod
54.79 - -
Average Age of Inventory
6.21 - -
Operating Cycle 61 26 Worse