Financial Report

Continue your work with the company you selected in Week 1. Please see attached powerpoint.

In preparation for the Week 4 Summative Assessment, research your company’s financial reports from the past fiscal year, along with the market conditions from that same year.

Two Criteria

A chart or discussion of your company’s current financial reports with the market conditions from the previous fiscal year, such as the company’s revenue and Gross Margin vs. the stock market as a whole.

Briefly discuss market conditions such as Federal Reserve Bank monetary policy changes, and any other information you feel is relevant to your company.

Ronelle Green
Fin 571
Prof. Baker
September 9, 2024
Apple Inc.’s Financial Performance
 As the new business manager of Apple Inc., a Fortune 500
company with AAPL stocks, I will evaluate its growth and
sustainability.
 This assessment is based on an analysis of historical
financial statements and a quick overview summarizing the
company’s financial data, ratios, share performance, and
overall financial worth to give directions on the actual
future of finance.
 The first aim is to assess the company’s cash flows, market
capitalization, stock price trends, and other financial
factors to establish Apple’s financial performance at the
current state and its potential ability to achieve and
maintain financial strategic objectives in the future.
Key Performance Indicators (KPIs)
 APPLE has two significant KPIs: Its
cash flow and its EPS.
 The company’s cash flow from
operations has constantly risen within
the past three years from $87.8 billion
in the previous fiscal year to $116.0
billion in the current fiscal year.
 This positive trend proves Apple’s
operational excellence and capacity to
create cash flow – essential for the
company’s long-term viability, as Yue
(2024) noted.
Stock Price and Price-to-Earnings
(P/E) Ratio
 Apple has a stock price of 177.50 with a corresponding P/E
ratio of 28.5.
 The P/E ratio is one of the most used indicators, enabling
investors to understand if the stock has a higher or a lower
price than its value relating to its earnings per stock.
 The P/E ratio of Be has been computed to be 28.5, meaning
investors are willing to pay 285 times the current earnings
per share for every dollar of earnings, an endorsement of
the company’s probable future earnings and market
growth.
Market Capitalization and Its
Significance
 Apple Company has a market capitalization of $ 2.9 trillion,
making it among the biggest companies in the world.
 Market capitalization gives the total value of a firm’s stock
shares that are available on the market, and this gives
investors a picture of the size and stability of the business.
 For Apple, such a high market cap indicates effectiveness
and market control, affording investors confidence.
 It is also advantageous for the company financially because
it can make profitable investments, acquire other
businesses or companies and manage the impacts of
economic crises.
Stock Price Trends and Dividend
Payout
 Apple’s stock trading has been on the rise, with the price
rising to a 52-week high of $191.10.
 Some of what has been illustrated below; the current price
has been $177.50, which is nearly the maximum that
investors have placed.
 The company also has a good reward policy of an annual
dividend of $0.24 per share with a yield of 0.65%, ensuring
shareholders receive some form of income apart from the
capital gains.
 This is reasonable given that Apple’s dividend yield is low
compared to other companies, implying that the firm does
not distribute high dividends but reinvests in growth
projects, according to Lu (2024).
Stockholders’ Equity and Recent
Market Trends
 Apple’s total shareholder’s equity, which is the net amount
of total assets available to its stockholders after the firm’s
total liabilities are removed, is thus as follows.
 It has remained buoyant thanks to its profitability and a
large pile of cash.
 The equity has increased in parallel with the revenues and
profitability, affirming the company’s strong financial
position.
 Changes in market conditions over the year, including
growth in demand for technology stocks and availability of
new Apple products that customers have demanded, have
also boosted the firm’s stock price and equity.
Cash Flow Trends
 This has revealed that cash flow in Apple’s operating
activities has risen over the last three years from $ 87.8
billion to $ 116.0 billion.
 This growth signifies that the company can get a
handsome amount of cash from its operating
activities.
 Apple reported extensive cash utilization during
investing activities in the most recent fiscal year and
financing activities of $10,5 billion and 72,0 billion,
respectively.
Outlook for Growth and
Sustainability
 Judging from the figures above, Apple is in good shape to
achieve its financial targets given in the above model.
 Its stable platform to further develop is the continuous
growth of the revenues, stock and fund the cash flow
platforms for-profit development Investment in new
technologies and new geographical segments, such as in
wearables and services, will remain critical in the
development of Apple’s revenues in future as noted by
Wang (2024).
Investment Recommendation and
Comparison with Analysts
 Based on the current performance and growth
prospects of this stock, Apple’s solid financial
prospects, and its current position in this industry, it is
wise to invest in this stock.
 Given its stable growth and constant innovation,
consistent with a vast generation of cash flows, the
purchase from Apple Inc. is envisaged to yield good
returns in the future.
 This brings this recommendation to the analysts’ view,
who have also uniformly urged a ‘buy’ on the stock.
References
 Lu, Y. (2024). Financial statement analysis and revenue
forecast for Apple Inc. In SHS Web of Conferences (Vol.
181, p. 02020). EDP Sciences.
 Wang, Y. (2024). Analysis of Apple Financial Risk
Management. Highlights in Business, Economics and
Management, 40, 1126-1136.
 Yue, X. (2024). The Impact of ESG on Corporate
Financial Performance: The Case of Apple
Inc. Highlights in Business, Economics and
Management, 40, 833-839.