Apple, Inc.: Company Analysis

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Introduction

Apple, Inc. is a California-based consumer electronics firm that significantly contributed to the industry’s development. The company is famous worldwide for the iconic iPhone, MacBook, and Macintosh software upgraded with the newest innovations almost yearly. Moreover, Apple, Inc. is the leader of Fortune’s latest “World’s Most Admired Companies” rating because of the growing demand for its products and stable position in the stock market (Fortune, 2021). This paper aims to analyze the company’s history, financials, and product offerings based on the most recent market information.

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Many modern significant companies have Californian roots, and Apple, Inc. is not an exception: it has been founded in Cupertino. The firm began with Apple I, a personal computer released by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976. The device and Macintosh software rapidly became popular due to their usability and great design. Apple, Inc. had an IPO on December 12, 1980, at $22.00 per share, and the status of a public company influenced the company’s leadership and development strategies. Steve Jobs and Steve Wozniak were the co-founders until in 1985 they were forced to leave the position due to conflicts with the board. Jobs returned to Apple in 1997 when the company was in its decline stage and helped revive it by launching innovative products. He remained in the leading position until he died in 2011, after which Tim Cook became the CEO.

Iconic iPhone, iPad, and Mac computers were developed after Jobs’s comeback and made Apple one of the most significant players in the consumer electronics field. The highest-level prominent product the company owns is iPhone: more than 40 million units are being sold quarterly worldwide, generating more than $25B in revenue (Statista, 2021). Other demanded goods are iPads and Mac computers in their various versions. The total revenue is $274,5B, $15860 per share, and its market capitalization is $2,2B. Apple’s current market position maintains growth, and with $2 trillion worthiness, it is the world’s most valuable company.

Apple Inc.’s Financials

Apple’s balance sheet’s ratings for the last three years show the equity and liabilities worth $343B, the company’s financial situation can be identified as healthy. Based on the latest data published on September 26, 2020, the firm’s debt was $13,769B, and the current liability was $105,3B. Apple’s cash and equivalence rapidly grew in 2019 from $25,9B to $48,8, and then dropped to $38B in 2020. As the company continuously develops and implements innovations for its best products, investors support its financial situation at the optimal level. Apple’s income statement reveals that the company’s revenue maintains growth, and its total by September 26, 2020, was $274,5 billion with $15860 per share. While the operating income is $66,2 billion, the net one is $57,4B. The income statement is crucial for evaluating a company’s performance, and Apple’s numbers show steady growth.

Apple’s profitability ratios have been increasing in percentage during the last three years: its net ROA is 17,38% (was 16,07% in 2018), and the net ROE went up to 73,89% from 49,36% it was in 2018. The current operating ROI is 35,33%, and that rate improves due to the company’s net income growth. The current liquidity ratio is 1,36 which is higher than in the previous years, and its total debt to equity raised from 1,07 to 1,72. Apple’s cash flow per share has grown to 6,34, and it keeps getting higher. According to the analyzed ratios, Apple will maintain steady growth in the future profitability ratios and decrease the debt by setting more balance in its financial situation. Based on the 52 weeks rate, Apple’s stock price is $56.09 – $143.16, with an average weekly closing price of $135.70. The company’s volatility depends on the price variabilities, and it significantly increased from $8.71 in 2019 to $21.91 in 2020, which is the highest result in the firm’s history.

Apple’s Current Business Situation

During its first two decades of existence, Apple went through launch and growth stages, overcame the shake-out phase in the 1990s, and now reached the maturity period of its life cycle. The company has well-built values, a reliable place in markets, and formed customers’ perception to develop new goods and maintain the demand in the older ones. Apple’s product offerings include a range of devices and digital services, such as the iPhone, Mac, and the software for them, iPod, Apple Watch, Apple TV, AirPods, iCloud, and ApplePay.

The company releases renewed versions for iPhone and Mac yearly and improves other products with innovations related to the tools’ performance and longevity. Moreover, Apple plans to increase the market value by announcing cheaper versions of the most iconic devices in its pipeline. The consumers’ most demanded product is iPhone, based on the revenue it generates for the company, and the novel versions of it will be desirable for the customers in the future.

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Apple has sustainability-based policies and produces its devices considering the environmental outcomes they might have. For example, the latest iPhone 12 is being distributed without chargers to decrease the carbon dioxide emissions caused by mining, packaging, and transporting them. Apple provides the United States with a significant number of jobs with a $391,624 net income per employee, thus the government instead supports the corporation than administrates its policies. Apple’s products are in high demand, therefore the supply capability requires continuous updating, and the company’s solutions are based on the balance between the goods’ cost and price.

Conclusion

Apple is the most valuable company globally; therefore, its financial stability is crucial for investors, suppliers, and competitors. The firm’s revenue has grown for the last three years, and the implementation of novel devices helps maintain that uplifting tendency. The financial analysis revealed that the company moves toward achieving a balance between income, costs, supply, and demand. Moreover, Apple releases products according to the latest trends and creates affordable offers to increase its consumers’ range.

References

Fortune. (2021). World’s most admired companies. Web.

Statista (2021). iPhone revenue as a share of Apple’s total revenue 2009-2020, by quarter. Web.

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BusinessEssay. (2022, June 24). Apple, Inc.: Company Analysis. Retrieved from https://business-essay.com/apple-inc-company-analysis-essay-examples-2/

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"Apple, Inc.: Company Analysis." BusinessEssay, 24 June 2022, business-essay.com/apple-inc-company-analysis-essay-examples-2/.

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BusinessEssay. (2022) 'Apple, Inc.: Company Analysis'. 24 June.

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BusinessEssay. 2022. "Apple, Inc.: Company Analysis." June 24, 2022. https://business-essay.com/apple-inc-company-analysis-essay-examples-2/.

1. BusinessEssay. "Apple, Inc.: Company Analysis." June 24, 2022. https://business-essay.com/apple-inc-company-analysis-essay-examples-2/.


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BusinessEssay. "Apple, Inc.: Company Analysis." June 24, 2022. https://business-essay.com/apple-inc-company-analysis-essay-examples-2/.