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Analysis of Apple 's Financial Statements

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Analysis of apple’s Financial Statements

I. Balance Sheet 1. Asset growth * Total Assets: From 2003 ($207,000 million), the amount of total assets rose to $231,839 million in 2007 – 12.5% increase for the period. * Total Current Assets: The amount of total current assets slowed a little from $73,286 million to $68,531 million in 2014 due to a drop in cash and cash equivalents and short-term marketable securities growth. 2. Asset structure
First, the relative importance of Property, Plant and Equipment to Apple is not large. This reflects the fact that manufacturing hardware such as the Apple iPhone is outsourced. The relative importance of Financial Assets is immediately clear. The big spike is “Long term marketable securities.” In general the asset composition is a much greater emphasis upon financial as opposed to real assets for Apple.
Furthermore, this is an increasing trend over time. This is especially the case for investment related financial assets however Apple’s working capital assets, such as inventory and accounts receivable, are also growing. This reflects the current growth and the expectations for immediate future growth. 3. Liabilities and Equity Growth * Total Liabilities: As shown at the chart above, the amount of Total Liabilities successively increased within the last two years due to the overall growth. * Retained Earnings: For the analyzed period, Apple’s Retained Earnings fell from $104,256 million in 2013 to $87,152 million in 2014 (16.4% decrease). For the last fiscal year of 22014, Apple’s Retained Earnings were 37.6% of the Company’s Total Liabilities and Equity. * The composition liabilities for Apple also reflect strength. Long term liabilities are approximately 13% of Total liabilities. Compared to Total Assets, Apple’s Total liabilities are low. II. Income Statement * Revenues:…...

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