Based on the Last 3 year data you collected(Uploaded), Write a report on the financial condition of Apple Inc. Focus on the financial health of the company and the likelihood of achieving future success. Specifically,
evaluate the company’s capital structure, liquidity, profitability, and effective use of assets, solvency,
and any other relevant factors. State your opinion on the company’s short-term and long-term financial
strength. Compare your company to the industry average and Microsoft. Supplement the story with the past three years of stock price data that you examined in Week 6(Uploaded) and
other outside news stories. You have to compare the ratios
for your firm vs. the ratios of its competitors. You can also see some of the latest news
and projections for the company. Again, you may want to look at its closest competitor. The last
paragraph you have to give your recommendation and reasoning for buying the stock or not. Besides evaluating your own firm Apple, Inc., you HAVE to compare it to Microsoft before you recommend to me whether to invest in your firm’s stock or not.
Make sure to cover: Bond average yield Analysis,
Stock price last three years Analysis,
Analysis of all data gathered,
Your recommendation of the Stock or not.
Apple Inc.
Key Ratios
2016
2015
2014
Liquidity
Current Ratio
1.35
1.11
1.08
Quick Ratio
1.3
0.89
0.82
Asset Management
Inventory Turnover
101.4
99.5
86.6
days sales in inventory
3.6
3.7
4.2
Receivable turnover
13.69
13.87
10.47
days sales in receivables
26.7
26.3
34.9
Days sales outstanding (DSO)
27
26
34
Fixed Asset turnover
7.98
10.4
8.86
Total Asset turnover
0.67
0.8
0.79
Debt Management
Total debt to total capital
38.1%
35%
24%
Debt/Equity Ratio
0.68
0.54
0.32
Equity Multiplier
2.5
2.4
2
Times-interest-earned (TIE)
37
81
101
Profitability
Operating Margin
27.8%
30.5%
28.7%
Profit Margin
21.2%
22.9%
21.6%
ROA
14.2%
18.38%
17.4%
ROE
35.6%
44.74%
35.42%
ROIC
35.4%
31.32%
26.2%
Basic Earning Power
19.1%
25%
23.1%
Market Value
EPS
$8.31
$9.22
$6.45
P/E
13.9
11.4
17.1
M/B
4.7
4.9
5.8
*Data calculated using information retrieved from Form 10-K Annual Report, Apple Inc. 2016, 2015, 2014.
Apple average YTM
Name
Amount $(Mil)
YTM %
Apple 2.4%
5,500
2.51
Apple 4.65%
4,000
4.07
Apple 1%
4,000
1.30
Apple 3.25%
3,250
2.95
Apple 3.85%
3,000
3.96
Apple 2.25%
3,000
1.97
Apple 2.85%
3,000
2.05
Apple 3.45%
2,500
2.73
Apple 3.35%
2,250
3.08
Apple 2.45%
2,250
2.93
Average YTM (Simple) = 2.755%
Reference:
AAPL Apple Inc ADR debt, bond, rates, credit – Morningstar. (n.d.). Retrieved June 01, 2017, from http://quicktake.morningstar.com/stocknet/bonds.aspx?symbol=aapl&country=arg
AAPL Stock Price in the Past Three Years
Last 3 Years
Highest
Lowest
$156.42
$85.22
My firm, Apple Inc. has appreciated during the past three years. Its stock price increased from $97.16(Jun 6, 2014) to $154.45(Jun 6, 2017). AAPL stock’s highest price was $156.42 and lowest price was $85.22 during the past three years.
Apple Inc. Dividend History
Dividend History *From Nasdaq.com/symbol/aapl/dividend-history
AAPL stock dividend has gradually increased from $0.47 quarterly in August 2014 to $0.63 quarterly in May 2017.
References
AAPL Interactive Stock Chart | Apple Inc. Stock. (n.d.). Retrieved June 06, 2017, from https://finance.yahoo.com/chart/AAPL?p=AAP
Apple Inc. Dividend History. (n.d.). Retrieved June 06, 2017, from http://www.nasdaq.com/symbol/aapl/dividend-history
AAPL_Stock_Graph_Knoll.docx