Explore 5 pictures by analysing then interpreting them ->> evaluate the reason of two trends of Apple's financial statement.

1. 1. From the beginning of 2000 to its peak in 2012, Apples stock price increased by more than 25 times, from $27.97 to $702.10. Examine ONLY the financial reports (in the appendices) and identify areas that were responsible for this stock performance. 2. From its peak in September 2012 to the end of March 2013, Apples stock price fell by 37%, from $702.10 to $442.66. Examine ONLY the financial reports (in the appendices) and identify areas that were responsible for this stock performance.

Appendices b9-Dec-2021 23:34 - Apple Inc | Income Statement Income Statement Annual Common Size (% of Sales) 2007 97 29-Sep-2007 100.00% 2011 67 24-Sep-2011 Earnings Quality Score Period End Date Revenue Net Sales Total Revenue Cost of Revenue, Total Cost of Revenue Gross Profit 2006 NIA 30-Sep-2006 100.00% 100.00% 100.00% 71.02% 71.02% 28.98% 100.00% 100.00% 66.83% 66.83% 33.17% 2008 97 27-Sep-2008 100.00% 100.00% 100.00% 64.80% 64.80% 35,20% 2009 97 26-Sep-2009 - 100.00% 100.00% 100.00% 59.86% 59.86% 40.14% 2010 91 25-Sep-2010 100.00% 100.00% 100.00% 60.62% 60.62% 39.38% 100.00% 100.00% 100.00% 59.52% 59.52% 40.48% 2012 67 29-Sep-2012 100.00% 100.00% 100.00% 56.13% 56.13% 43.87% 2013 90 28-Sep-2013 100.00% 100.00% 100.00% 62.38% 62.38% 37.62% 12.80% 12.60% 3.69% 12.06% 12.06% 3.18% 10.03% 10.03% 2.96% % 9.67% 9.67% 3.11% 8.46% 8.46% 2.73% 7.02% 7.02% 6.42% 6.42% 2.16% 6.34% 5.76% 2.62% 2.24% 82.07% 17.93% 2.63% 2.63% 77.79% 22.21% 1.74% 1.74% 72.64% 27.36% 0.95% 0.95% 71.81% 28.19% 0.48% 0.48% 68.78% 31.22% 0.48% 0.48% 64.70% 35.30% 0.70% 0.70% Selling/General/Admin. Expenses, Total Selling/General Administrative Expense Research & Development Depreciation/Amortization Interest Expense, Net - Operating Total Operating Expense Operating Income Interestinvest Income - Non-Operating Interest Income - Non-Operating Investment Income - Non-Operating Interest Inc. (Exp.), Net-Non-Op., Total Other, Net , Other Non-Operating Income (Expense) wat non Net Income Before Taxes Provision for Income Taxes Net Income After Taxes Net Income Before Extra. Items Net Income 87.30% 12.70% 2.04% 2.04% 0.00% - 2.04% -0.15% -0.15% 14.59% 4.29% 10.30% 10.30% 10.30% 2.63% -0.20% -0.20% 20.37% . 6.15% 14.22% 14.22% 14.22% 1.74% -0.09% -0.09% 23.86% 7.54% 16.32% 16.32% 16.32% 0.95% -0.19% % -0.19% % 28.12% . 8.93% 0.48% -0.24% -0.24% 28.42% 6.94% 21.48% 21.48% 21.48% 0.48% -0.10% -0.10% 31.60% 7.65% 23.95% 23.95% 23.95% 0.70% % -0.36% -0.36% 35.63% 8.96% 26.67% 26.67% 26.67% 71.33% 28.67% 0.77% 0.95% -0.18% 0.69% -0.01% -0.01% % 29.35% 10.00 7.68% % % 21.67% 21.67% 21.67% 19.19% 19.19% 19.19% Figure 1: Common size Income Statement 2006 - 2013 09-Dec-2021 23:35 Apple Inc Balance Sheet Balance Sheet Annual Common Size (% of Total Assets) 2007 2008 2009 2012 2013 2006 NIA 30-Sep-2006 -- 2010 91 2011 67 97 97 97 67 90 28-Sep-2013 - 29-Sep-2007 27-Sep-2008 26-Sep-2009 25-Sep-2010 24-Sep-2011 29-Sep-2012 58.76% 22.30% 16.54% Earnings Quality Score Period End Date Assets (5 Millions) Cash and Short Term Investments Cash Cash & Equivalents Short Term Investments Accounts Receivable - Trade, Net - Total Receivables, Net Total Inventory Total Current Assets 2.49% 1.16% 35.99% 21.61% 60.70% 1.01% 35.89% 23.81% 61.13% 1.02% 31.81% 28.30% 49.40% 2.40% 8.68% 38.32% 34.08% 2.25% 12.73% 19.59% 4.21% 2.68% 12.70% 5.94% 13.87% 19.10% 1.77% 4.34% 10.44% 6.21% 10.62% 0.45% 6.46% 6.33% 7.28% 16.54% 7.33% 13.20% 15.90% 6.70% 13.00% 1.41% 82 96% 7.08% 10.65% 0.96% 4.61% 10.07% 0.67% 1.57% 1.40% 1.37% 86.62% 9.97% 0.85% 35.40% 84.33% 66.43% 55.44% 38.66% 32.75% % 11.21% 10.11% 12.06% 4.42% 3.64% 10.36% 3.66% 9.83% 3.51% 9.62% 2.70% 1.96% 13.78% 1.92% 4.02% 3.01% 4.00% 2.23% 1.77% 6.11% 6.68% 4.18% Property/Plant/Equipment, Total - Gross , Buildings - Gross . Land/Improvements - Gross Machinery/Equipment - Gross / Property/PlantEquipment, Total - Net Goodwill, Net LT Investments - Other Total Assets 4.97% 2.24% 4.46% 6.79% 0.57% 7.45% 12.43% 1.97% 1.39% 9.08% 8.78% % 0.64% 52.32% 2.01% 4.31% 6.22% 0.43% 22.16% 100.00% 7.23% 1.60% 10.26% 8.02% 0.76% 51.31% 100.00% 0.22% 6.34% 0.99% 33.77% 100.00% 0.15% 0.77% 47.79% 6.58% 100.00% 100.00% 100.00% 100.00% 100.00% 11.79% 12.57% 10.81% 19.70% 13.08% 15.26% 12.50% 15.98% 9.46% 9.71% 9.38% 7.98% Liabilities (5 Millions) Accounts Payable Other Current liabilities, Total Customer Advances Income Taxes Payable Total Current Liabilities 19.61% 13.96% 7.64% 1.93% 12.03% 8.00% 4.23% 0.87% 4.80% 4.85% 5.27% 4.20% 6.06% 2.26% 37.45% 6.35% 1.40% 0.91% 0.88% 27.56% 0.98% 24.04% 0.58% 21.09% 36.61% 31.41% 24.22% 21.89% 0.00% 0.00% 0.00% 8.19% 0.00% 0.00% 0.00% 0.00% Total Long Term Debt Long Term Debt Total Debt Total Liabilities 0.00% 0.00% 0.00% 42.67% 0.00% 0.00% 0.00% 38.36% 0.00% 0.00% 0.00% 32.86% 0.00% 0.00% 33.39% 0.00% 41.97% 0.00% 0.00% % 34.16% 8.19% 8.19% 40.31% 36.43% Figure 2: Common size Balance Sheet 2006 - 2013 2008 2009 2010 2011 2007 29-Sep-2007 estety 2012 29-Sep-2012 . 2013 28-Sep-2013 27-Sep-2008 26-Sep-2009 25-Sep-2010 24-Sep-2011 22,111 23,464 25,620 14,359 10.236 15,386 6,034 4,029 2,392 346 25,952 16,137 11,717 18,201 5,057 1,696 29,129 18,383 18,692 40,546 26,287 20,641 4,704 9,924 2,282 7.762 Apple Inc Balance Sheet 09-Dec-2021 23:35 Balance Sheet Annual Standardised in Millions of U.S. Dollars 2006 Period End Date 30-Sep-2006 - Assets (5 Millions) Cash and Short Term Investments 10,110 Short Term Investments 3,718 Total Receivables, Net 2,845 Receivables - Other 1,593 Total Inventory 270 Other Current Assets, Total 1,076 Total Current Assets 14,509 Property/Plant/Equipment, Total - Gross 2,075 Buildings - Gross 760 Land/Improvements - Gross 626 Goodwill, Net , 38 Intangibles, Net 139 Long Term Investments Total Assets 17,205 7,539 6,348 776 509 4,414 1,051 5,083 455 791 1,764 1,778 2,207 30,006 3,747 2,270 31,555 4,667 6,543 44,988 21,956 10,335 73,286 9,041 57,653 21,887 41,678 2,841 7,234 11,768 28,519 1,019 1,665 2,030 3,464 1,324 810 3,968 3,309 762 955 2,599 2,059 896 1,471 2,439 38 207 206 741 1,577 1,135 4,224 382 342 3,536 352 2,379 36,171 353 10,528 4,179 106,215 25,391 75.183 55,618 116,371 92,122 176,064 25,347 47,501 207,000 3,390 12,015 14,632 4,970 3,538 5,520 4,521 5,601 4,612 21,175 14,084 22,367 16,509 2,250 7,114 10,910 6,129 1,042 1,936 2,278 3,647 7,445 Liabilities (5 Millions) 5 Accounts Payable Other Current liabilities, Total , Customer Advances Income Taxes Payable Total Current Liabilities Total Long Term Debt Long Term Debt Total Liabilities 2.298 506 488 388 6,443 430 11,506 658 20,722 1,140 27,970 1,535 38,542 8,697 1,200 43,658 16,960 9,280 11,361 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7.221 16,960 83,451 10,815 13,874 15,861 27,392 39,756 57,854 13,331 Shareholders Equity (s Millions) Common Stock, Total Retained Earnings (Accumulated Deficit) Total Equity Total Liabilities & Shareholders' Equity 4,355 5,607 5,368 9,101 7,177 15,129 22 297 8,210 23,353 19,764 104,256 62,841 10,668 37,169 47.791 75,183 16,422 101,289 118,210 176,064 9,984 76,615 123,549 14,532 25,347 31,640 47,501 17,205 36,171 116,371 207,000 Figure 4: Balance Sheet 2006 - 2013 2009 2010 2007 29-Sep-2007 2008 27-Sep-2008 2011 24-Sep-2011 2012 29-Sep-2012 - 26-Sep-2009 25-Sep-2010 3,495 6,119 8.235 14,013 25,922 327 496 734 1,027 1,814 Apple Inc Cash Flow 09-Dec-2021 23:36 Cash Flow Annual Standardised in Millions of U.S. Dollars 2006 Period End Date 30-Sep-2006 Cash Flow-Operating Activities (5 Millions) Net Income/Starting Line 1,989 Depreciation/Depletion 225 Depreciation 225 Deferred Taxes 53 Changes in Working Capital -221 Accounts Receivable -357 Inventories -105 Other Assets -2,666 Accounts Payable 1,611 Other Liabilities 1.296 Cash from Operating Activities 2,220 327 496 734 1,027 1,814 41,733 3,277 3,277 4,405 -299 -6,965 73 398 1,040 1,440 2,868 1,321 2,045 -586 1,212 -385 -785 -939 -4,860 5,757 -1,791 275 -76 -163 54 -596 -15 -994 15 -153 - 1,391 -3,162 1,494 596 92 -1,634 6,307 1,995 4,467 2,515 6,149 1,282 2,382 360 5,376 50,856 5,470 9,596 10,159 18,595 37,529 -657 -986 -1.213 -2,121 -9,402 -1,199 -1,091 -7,452 -4,260 -657 -735 -1,144 -8.295 -2,005 -116 0 -251 -108 -69 -3,192 -1,107 Cash Flow-Investing Activities ($ Millions) Capital Expenditures Purchase of Fixed Assets Purchase/Acquisition of Intangibles Other Investing Cash Flow Items, Total Acquisition of Business Sale/Maturity of Investment / Purchase of Investments Cash from Investing Activities 1,014 -2.263 -6,990 - 16,221 -11,733 -32,967 0 0 -638 -244 -220 16,243 8,312 9,424 0 30,678 -46,825 69,853 -38,825 -350 112,805 -151,232 -48,227 -7.280 -23,003 46,718 -57,811 -13,854 -11,736 -3,249 -102,317 -40,419 357 -8.189 -17.434 361 374 633 188 345 613 125 Cash Flow-Financing Activities (5 Millions) Financing Cash Flow Items Other Financing Cash Flow Total Cash Dividends Paid Cash from Financing Activities 361 374 633 188 345 613 125 0 -2,488 324 739 1,116 663 1,257 1,444 -1,698 Free Cash Flow 1,563 4,484 8,397 8,946 16.474 30,077 41,454 Figure 5: Cash Flow Statement 2006 - 2012 2008 2009 2010 2013 2012 390 247 416 2011 357 40.50% 31.20% Apple Inc | Ratios - Key Metrics 09-Dec-2021 23:36 Ratios - Key Metrics - Annual Standardised in Millions of U.S. Dollars Industry Median 2006 # Stores 165 Gross Margin 40.80% 29.00% Operating Margin 6.60% 12.70% Pretax Margin 3.70% 14.60% Effective Tax Rate 11.20% 29.40% Net Margin 3.10% 10.30% Asset Turnover 0.75 1.35 Pretax ROA 3.30% 19.60% ROE 5.70% 22.80% Reinvestment Rate 3.80% 22.80% Liquidity 273 - 40.10% 27.40% 28.10% 35.20% 22.20% 23.90% 43.90% 35.30% 2007 197 33.20% 17.90% 20.40% 30.20% 14.20% 1.16 37.60% 28.70% 39.40% % 28.20% 28.40% 24.40% 31.60% 35.60% 24.20% 25.20% 31.60% 16.30% 31.80% 19.20% 29.30% 26.20% 21.70% 21.50% 23.90% 26.70% 1.22 1.03 1.06 1.13 0.89 1.07 38.10% 30.20% 35.70% 26.20% 23.50% 28.50% 29.10% 33.20% 28.80% 30.50% 35.30% 41.70% 42.80% 30.60% 28.50% 33.20% 30.50% 35.30% 41.70% 40.30% 21.90% 1.01 2.21 2.33 2.6 2.7 1.96 1.58 1.48 1.64 1.61 2.25 2.37 2.64 2.74 2.01 1.61 1.5 1.68 360.3 4.7. 67.4 -28.1 -34.9 -29.8 -30.6 -32.3 -33.7 -35.6 -28.1 2.4 1.72 1.74 1.62 1.5 1.57 1.52 1.49 1.68 0.07 0 0 0 0 0 0 0.14 0 0.00% 24.50% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 12.10% Quick Ratio Current Ratio Times Interest Earned Cash Cycle (Days) Leverage Assets/Equity / Debt/Equity % LT Debt to Total Capital Operating A/R Turnover R Avg. A/R Days Inv Turnover Avg. Inventory Days Avg. A/P Days A/ Fixed Asset Turnover WC / Sales Growth ROIC 5.9 10.3 7.2 8.6 8.8 8.7 10 10.3 8.7 62.1 35.9 50.9 42.4 41.4 41.8 36.4 35.4 41.9 5.9 63.1 53.3 56.8 53.3 52.5 70.5 112.1 83.4 5.9 6.8 6.4 6.8 6.9 5.2 4.4 62.1 74.3 7.59 3.2 74.2 69.9 78.6 78.8 81.1 75.3 17.26 74.3 10.67 18.41 17.49 15.86 16.89 13.48 92.6 15.79 3.70% 26.10% -0.90% 3.30% -13.70% -13.90% 2.70% -1.70% 21.20% -0.40% 29.90% -6.00% 36.90% 27.10% 31.00% 36.30% 24.60% Figure 6: Select Ratios 2006 - 2013