Evaluation of corporate performance on apple

During the initial stages of establishment, poor computer sales made Wozniak and Jobs to become ousted from the Company only for Jobs to be taught back into the Company later. It was the same Apple Inc. that established Next. Jobs was the undisputed chief executive officer of Apple Inc. for quite sometimes and did significant accomplishments. Innovation has been the fundamental pillar of Apple Inc. over the years and is still considering the best possible technology. Financial Statement Review The statements of financial position, as well as the income statement of Apple Inc. , are seen to be essential in understanding the current economic situation of the Corporation. It is the details of the comments that help in knowing some of the problems and strengths of the Company.

289 billion in the year 2011 to about 233. 715 billion in 2015. The increase comes at a point when various channels of production have been considered by the Company a great deal. There have been significant sales strategies that the organization has considered, which gives them a suitable approach through which they can complete several sales realizations. In the same 2011, the net sales of Apple Inc. There were different measures of sales that the organization experienced from the consistent rise in the number of sales accounted for by the organization. Based on the given information in the annual income statement, it is easy to form a hypothesis that Apple Inc. will be involved in an experience to be able to increase the net sales and the cost of sales.

It implies that the Company will experience a total increase in the overall profit they get. When the sales increase, the profits of the Company will increase. An increase in the cost of goods will definitely cause an increase in the total assets overall. It is such undertakings that help in promoting different issues of the organization.       Starting Pro forma       9/26/2017 9/26/2018           Assets           Current Assets         Total Current Assets 89. 378 Billion 98. 3158 Billion             Long Term Assets         Total Assets 290. 626 billion / 233. 715 billion) x 100 GPM =. 400599 x 100 GPM = 40% The results indicate that for every dollar Apple Inc. made in sales, they earned 40 cents in profit. However, they had to incur a total expenditure of 60 cents to make it. 447 * 100 ROE = 45% The above information indicates that the organization makes 45 cents whenever they invest any cent over time.

However, with regards to the ratio analysis, Apple Inc. is doing a very well, and their profit numbers are very good for the types of investors. Cash Flow Ratio The cash flow ratio is seen to be an important measure of how appropriate current liabilities are covered by the given cash flow obtained from the operations of the Company. The ratio is appropriate for measuring the Company’s liquidity in the short-term period operation. is doing a great job in highlighting its expenses from the given short-term liabilities. However, the measure of performance can be used in the manner of having a DuPont system of analysis. In this approach, assets are measured at the gross book value rather than the net book value to be in a position to produce greater returns than what is anticipated.

Below is a highlight of returns on equity with the use of the DuPont system approach. DuPont System of Analysis Return on Equity = Profit Margin x Total asset turn over x financial leverage Profit Margin = Net Income / Net Sales Total Asset Turnover = Net Sales / average total assets Financial Leverage = Total Assets / Total Equity Profit Margin = 53. 18 x 2. 100 = 10% The approach implies that Apple Inc. is effective in generating sales while at the same time maintaining a lower cost of goods. Based on the outlined information which has been given and the analysis that was completed, it is easy to see Apple Inc. in a better portion for investment and allowing appropriate channels for investment to be possible (Wright, & Ferris, 2017). The financial risks of them operating all across the world provide different regulations that the Company ought to follow to make sure the right principles have been enhanced in the given time period.

There are also various key tax highlights and duties that are effectively associated with the operating cycles in a foreign country, making it be effective and accommodative all across other nations. In Apple’s case, there is a risk of patent infringement, which has really affected the way in which various issues are completed. China has many copy cats of the products the organization produces. The Company continues to be a leading highlight of the different highlights that they have. The principal focus has been made to the way in which such components are made and effectively designed to complete given processes. Calculating Economic Value Addition Apple Inc. balance sheet 2017 2018 Equity $24,000 $16,000 Debt $10,000 $8,000 Sources of Funds $35,000 $24,000 Fixed assets $15,000 $18,000 Current assets $25,000 $18,000 Less: Current Liabilities $10,000 $8,000 Uses of funds $30,000 $24,000 Cost of debt 8% 8% Cost of equity 10% 12% WACC for the year 2018 • = 8% * (1- 30%) * ($ 10,000 / $ 30,000) + 10% * ($ 20,000 / $ 30,000) • = (8% * 70% * 1/3) + (10% * 2/3) = 1.

53% WACC for the year 2017 • = 8% * (1- 30%) * ($ 7,000 / $ 24,000) + 12% * ($ 17,000 / $ 24,000) • = (8% * 70% * 7/24) + (10% * 17/24) = 1. 13% The Company’s financial policies Over the years, Apple Inc. It shall be noted that the Company experienced a near-collapse experience that affected the ways in which the organization completed various activities that would influence different activities. The general outcome was the realization of a new channel of products and having an unprecedented financial design that would set a path through which the Company could thrive through. Among the issues that the Company suffered was the main problem of tax evasion, which was a great realization to the way in which the issues were considered. There was a need to look at the ways through which issues could be completed and done in a way that subsequent government tax policy was never neglected.