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Perform trend analysis for Apple Inc. the most recent four years (the financial statements needed for this assignment may be available at https://finance.yahoo.com/). Analyze the

Perform trend analysis for Apple Inc. the most recent four years (the financial statements needed for this assignment may be available at https://finance.yahoo.com/). Analyze the trends for 3-line items you believe are most important in evaluating a company for the balance sheet and the income statement (3 each). In your initial post, answer the following questions:

1.What do you observe in the linear trends (i.e., are values increasing or decreasing)?

2.What are the trends on a common-size basis?

3.What would be your next steps in completing a thorough analysis of the trends?

(I got this answer from a previous tutor and stupidly accepted it but it does not clearly format linear trends, common-size basis, and your next steps analysis in completing a thorough analysis of the trends. The quality of tutoring in Managerial Accounting has decreased compared to past classes with not having a thorough explanation, clear formatting, and easy to understand. I sometimes don't have time to read the material before asking a tutor, but please organize it so I can:

  1. What do you observe in the linear trends (i.e., are values increasing or decreasing)?
  2. What are the trends on a common-size basis?
  3. What would be your next step in completing a thorough analysis of the trends?

Thank you and I pray that a tutor accepting this question does it well!

Revenue Trend

Net Sales of the Previous Four Years - It is evident from the above table that Apple had a significant revenue increase in 2015 by 28%. The revenue for the year 2016 unexpectedly decreased. In 2017, after a year of low growth, the economy grew by 6%.

The largest revenue generator is iPhone plus service, as seen in the product-by-product revenue chart. Revenues from other products (Mac, iPad) are nearly flat.

Net Sales fell considerably in 2016, owing to a slowdown in the selling of the iPhone and the impact of the weakening of many international exchanges against the US dollar. Total Revenue - In terms of dollar value, gross margin improved in 2018 compared to the previous year, owing to a conducive change in the iPhone mixwith better standard vending costs and high total income of utilities. Although, due to rising product costs, this rise has been partially reduced.

In addition, the rise of foreign currencies vs. the US dollar benefited profit margin and gross profit margin percent in 2018.Gross margin % slightly dropped mainly due to higher production structure cost.

Future outlook of Gross Margin- Company expects to earn Gross Margin in around 38% - 38.5% mainly due to the following factor: Company expect gross margin still volatile and under pressure

a. Tremendous pricing pressure

b. Potential increase in the cost of components

c. Outside manufacture service

d. Fluctuation in the exchange rate

Net Profit Margin-

company establishing margin on YoY basis around 20%+, which is quite good under tremendous competitive Technology market.

Other Factor - Legal Compliance + Data protection

Companies business is subject to the risk of an international operation,

Balance Sheet - Noncurrent portion of term debt has increased by 76% over the last four years as against revenue growth of only 14%.

Trade Receivable - The organizations'cellular web carrier is considered or fifty-nine percent of total receivable as in 2018 &2017. At present Apple has a considerable amount outstanding with its 3rd party cellular network carriers , wholesaler , retailer, reseller etc.

From current ratio analysis - it is quite clear that Apple maintains proper solvency ratio on YOY basis .

From cash and cash equivalent - noticed that company maintain good amount of cash balance after absorbing following factor :

a. Constant payment of dividend on YOY basis ( average pay-out $12000+ )

b. Repurchase of common stock

c. Borrowing of loan mostly set of repayment amount .

Overall company giving Basic Earnings per share $ 12.01 in 2018 , $9.27 in 2017, $ 8.35 in 2016 and constant flow of earnings per share (EPS).

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