Comparing Capital Expenditures

and Apple, which are direct competitors in the technology industry. The two companies primarily compete in developing mobile operating systems and other online platforms such as cloud accounts for the customers. The firms are the giants in the development of the most adopted operating systems for mobile phones. The report also presents a report on the capital spending of the two companies for the years 2015 to 2017. Furthermore, apart from giving a description of the capital expenditure and the possible factors impacting the capital structures and debt capabilities of the firms, the report also presents the consistency and fluctuations of the capital spending. This value obtained as ((13. On the same year, Alphabet Inc. experienced a 26% increase in capital spending which is obtained from ((10.

Unlike Alphabet Inc. that experienced further increase in the year 2017, Apple experienced a shrank of 1. Similarly, Alphabet Inc. recorded an average capital expenditure of 11. 11 billion which is calculated as (9. From the values, it is also possible to realize that the capital expenditure of Apple was higher than that of Alphabet Inc. by 1. The difference between the capital expenditure can also be explained through a consideration of management styles that the two companies adopt. The suitable management styles to explain the difference in the capital expenditure are aggressive and conservative styles of management. As such, it can be argued that Apple employs an aggressive management style. It is important to note that the style involves utilizing the profits to make more investments such as investing in capital expenditure with the aim of increasing the firm’s growth in the market share (Whitman & Shubik, 2006).