Présentation Corporate finance - Apple

Résumé du document

Apple's international strategy/development of the company of your choice and try to analyse how they are doing, from an operational and also financial point of view

Extraits

[...] - This remarkable market performance has not been steady, however. The company has experienced some bumps on its market valuation over the last couple of year, but the five-year average return is still high at 18.5%, which is a far superior performance in comparison to stock market indices, like the S&P500 or even the NASDAQ, the index dedicated to high-tech companies. - Despite this sterling performance over the last ten years, Apple was not always a company stock investors were interested in: there were numerous episodes of financial difficulties. [...]

[...]  Mixed results for operating income per regional market. Source : Idem. Apple acquisition of foreign small startups Regaind (France – Sept. 2017) Tuplejump (India - 2016) PowerByProxi (New Zealand – October 2017- Apple Inc. Financial Statements Cash Buybacks  Apple creates value for its shareholders by buying back shares on the open maket. Source : Idem. Conclusions  Apple prides itself with innovative thinking (The Jobs myth in particular) and can be relied upon to not become obsolete.  Apple experienced financial difficulties during the late 1990. [...]

[...] In 2015, Apple gained establishment approval when it was incorporated in the Dow Index, and replaced Telecom giant AT&T. Slide Apple exhibits strong sales growth, from $ 170Bn in 2013 to $ 230Bn in 2017. Apple achieved an annual growth rate of 7.8%. Its net income is growing as well, from $37Bn in 2013 to $48Bn 4 years later. Nonetheless, the annual growth rate is comparatively lower however, at 6.7%, which suggests overhead costs are catching up with sales. The 15% drop in 2015 figures accounts for a substantial part of this decoupling between sales and income (more on the reasons behind this drop, later) Total Assets figures suggest that Apple is spending a large amount on asset acquisition. [...]

[...] The annual average return would be 122%, or in real terms (inflation accounted for) Source : Bloomberg (AAPL:US) Apple Inc. Financial Statements – 2017  As a publicly traded company, Apple has a legal obligation to publish quarterly and annual financial statements.  Brief discussion of Apple's sales figures and shareholders' position. Source : 10-K filed form for 2017 - Apple Financial Statement Apple Inc. Financial Statements – 2017 Overview  As mentioned before, Apple experienced strong sales numbers. Its gross margin is increasing at a commensurate rate thanks to quasi-stagnant cost of sales ($140Bn in 2015, $141Bn$ in 2017)  Operating expenses experienced a 10% annual growth in 2015-2017, and were mainly driven by R&D expenditure – which accounts for 79% of operating expenses growth over the same period. [...]

[...]  : Lisa I and Macintosh are the first mass-consumer personal computers with keyboard, GUI monitor and mouse.  1998 : The all-in-one computer iMac is released on the personal computer market.  2001 : The first iPod is released on the market, and is the best-selling music player in record.  2007 : The iPhone is released, the first smartphone of its generation. Source : The Apple Museum Apple Inc. Stock market performance  Over a 5-year period, average annual stock return was at 18.5%. Annual average stock returns over the 10-year period was at 21.5%. [...]