Analysis Of Apple’s Annual Report

Apple Profile

The company of interest in this work is Apple. The entity’s headquarters are in California, at 1 Infinite Loop Cupertino. It was started in 1976 and incorporated in 1977. The company’s shares are sold in the NYSE and the Nasdaq stock market. Apple’s main business involves the production and sale of hardware, software, applications, content, mobile phones and services. Apple has become famous because of its brands such as iPhone, iPad and many other products.

This work uses Apple’s annual report dated September 30th 2017.

In the annual report, the total assets are given as $375, 319 million. The company presents the total revenues as $229, 234 million. Apple reports its net income as $48,351. The total assets, total revenues and net income have respectively increased from $321, 686 million, $215, 639 million and $45, 687 million in the previous year.

The company’s annual report indicates $9.27 as its basic earnings per share. For depreciation purposes, the company utilizes the straight-line method. On the other hand, Apple makes use of the first-in first-out method to manage inventory.

Get quality help now

Marrie pro writer

Verified writer

Proficient in: Company

5 (204)

“ She followed all my directions. It was really easy to contact her and respond very fast as well. ”

+84 relevant experts are online

Hire writer

In terms of shares, Apple only reports common shares as the only type of stock it offers. In relation to the common shares, as at September 30th 2017: the authorized shares were 12,600,000; 5, 126, 201 were issued at a par value of $0.00001; and 5,336,166 were outstanding as at that date.

Yahoo Finance gave the value of Apple’s shares as $190.58. The highest value reached in the last 12 months, as indicated by the 52 week-range given by Yahoo finance was 194.20. At as September 30th 2017, the total cash dividends paid was $12, 563 million which translates to .

40 dividends per share.

The auditing of the report was done by Ernest & Young, which is a reputable and independent accounting firm. The interesting aspect about the annual report is that Apple indicates that it indemnifies its executives for any liabilities that they incur in their line of duty, even if they get sued. Although I expected such a provision to be made, I thought it only existed in the employees’ contracts and not the annual report. With the $10,000, I am sure that investing in Apple’s stocks would be worthwhile. I made this conclusion after accessing Yahoo Finance and seeing that the value of the company’s shares has been rising, as evidenced by Apple’s stock chart. Actually, Yahoo Finance predicts that the stock will rise to $201.07 in the next one year. Given that a stock’s historical trend can predict its future movements, I am confident that I can make a good gain from the shares.