Also, the company has an enviable customer base that is extremely loyal towards the iOS platform. The company has maintained historical records of maintaining a customer retention percentage of more than 90%. The analysts and the investors are considering Apple as a strong buy based on the Fibonacci model. The Fibonacci retracements state that the stock prices follow a trend of rising strongly, then falling down to a lower price followed by a significant upturn. This justifies the fall of the stock prices in the fourth quarter of 2012 followed by a steep rise in the stock prices starting from the first quarter of 2013. Apple is considered as a fundamentally and technically strong company ideal for investment in its stocks (Edwards, 2007). The value driven mutual funds consider Apple as an important stock for investment and almost 40% of these mutual funds hold positions in Apple with more than USD 1 billion of assets. The biggest investors of the world are expected to accelerate the growth of shareholder value of Apple through buy backs and dividend pay-outs. The balance sheet of Apple is strong with zero debt value and high cash reserves of more than USD 1.45 billion. Around 74% of the analysts in the Wall Street hold a strong buy on the shares of Apple Inc. Moreover, the company is projected to surpass the earnings expectations by the end of the last quarter of 2013. The stocks of Apple Inc. represent more than 13% of the 100 stocks in NASDAQ and remain the most famous stock to invest by the hedge funds. Ratio analysis Ratio Analysis for Apple Inc. Ratios 2013 2012 2011 Return on assets 0.18 0.24 0.22 Current ratio 1.68 1.50 1.61 Quick ratio 1.64 1.48 1.58 Debt Equity ratio 0.68 0.49 0.52 Debt ratio 0.40 0.33 0.34 Price earnings ratio 13.96 11.75 13.77 EPS 39.75 44.15 27.68 Working Capital 29628000 19111000 17018000 Return on Assets The Return on Assets percentage indicates the profitability of the assets of a business in terms of earning revenue for the business (Brown, 2003). Ideally, the return on assets should be greater than 5%. In the case of Apple Inc. the ratio of net income to total assets decreases from 22% in 2011 to 24% in 2012 and to 18% in 2013. The return on assets ratio for Apple is quite high compared to the industry standards and indicates that the business is efficient in employing the stakeholder’s assets in generating income. The better use of the assets i.e. debt and equity in a business is represented by a higher percentage of ROA. Though the ROA percentages of Apple Inc. have decreased from 2011 to 2013, yet the investors would consider 18% ROA as a positive factor for investing in the stocks of Apple Inc. Current ratio Current ratio is used to measure how equipped the business ids to pay off its short term obligations like payables and debts using the current assets in the business like inventory, cash and other receivables. Current ratio is simply calculated by dividing the current assets by the current liabilities which include short term debts and other liabilities that are due within a period of less than a year. An ideal current ratio is valued at 2:1. The current ratios of Apple Inc. are measured at 1.61 in 2011, 1.50 in 2012 and 1.68 in 2013. Thus, the current ratios of Apple Inc. are strong over the three years indicating that the business
The title of the assignment: The The Dr. Ron Lentz The Financial Management 534 Date: Financial Research Report Introduction Apple Inc. is a major technological company located in Silicon Valley. The company is in the business of designing, manufacturing and marketing mobile and media electronic devices, software applications, networking solutions, a range of consumer electronics and support services…
To make the achievability of the report’s aim feasible, a number of methods of analysis were used. Collectively, the methods of analysis can be grouped as being qualitative and quantitative. Specifically however, financial ratio trends and industry comparatives, capital spending, stock growth, credit rating service valuations, bond rating valuations among others were all catered for.
An operating system in the simplest of words is a control software on a computer or similar devices where several other softwares can also be incorporated. By using the user analogy, it is the main control interface between the hardware component of the electrical gadget and the user.
The target audience and their requirements will also be examined and then a justification for design choices will be made. Implementation is the final stage of the project however low level prototyping will also take place which will allow the verification of correct choices to the made.
Ford is one of those companies that belong to the category of large consumer of IT (Allen & Morton, 1994).
Ford Motor Company started a revolution in the manufacturing field when it introduced the mass production assembly lines early in the 20th century.
The company was founded in 1911, as computing tabulating company through mergers of three companies. Its head office is located in New York. Since the inception, IBM is well known for the quality of its products
of a financial statement assesses whether financial statements provide a true as well as a fair view of a business and maintains the accounting standards stated in agreement with the regulations in the accounting standards (CPA Australia Ltd., 2013). The audit of the financial
The company must have a long history of success in the marketplace. Another desired attribute is that it must operate in than one country making the firm a global enterprise. Looking for companies that during the last three years earn a positive net income. The
e also certain companies for which it becomes inevitable for them to enter into a new market in order to maximize their sales, increase their profit, create brand awareness and maintain stability. With this concern, the research paper intends to discuss and analyze a market