분야
docx1. Analysis on economy
Global economy
National wide economy
2. Analysis on the personal computer
Industry
Personal computers industry
analysis
Is the stock of Apple Inc.
Defensive or Cyclical?
3. Analysis on Apple Inc.
Financial statements analysis
Various ratios analysis
Conclusion
Personal computers industry analysis
Description 1-Day Price Chg % Market Cap P/E ROE % Div. Yield % Debt to
Equity Price to
Book Net Profit
Margin Price To Free Cash Flow
Technology 1.489 10689.09B 17.378 14.095 0.789 128.152 36.976 8.006 77.959
Personal Computers 1.428 291.65B 19.7 26.8 0 85.311 6.04 11.4 20.9
Apple Inc. 1.18 267.05B 22.004 35.47 0 NA 6.194 20.72 85.807
The table above shows the operating efficiency of this industry and Apple inc. the ratios such as P/E, ROE, etc. indicate that Apple made remarkable sales operation, compared the industry. For example, ROE measures how much a firm makes profit in a year. Apple’s ROE is around 8% point higher than that of the personal computers industry. Since stocks in this industry as well as Apple’s are sensitive to the economy, they seem to reflect that the economy will improve soon.
Is the stock of Apple Inc. Defensive or Cyclical?
What is the type of the stock of Apple Inc.? We acquired some hints from these graphs.
This is a graph for 3 years from February 2008 to November 2010. The 3 lines which are blue, red, and green represent Nasdaq, S&P 500 and Apple Inc. As we can see, Apple Inc moved together with other two types of index even though the stock price was different. For example, in the sub-prime mortgage, the performance of these three indexes was the worst. However, the performance has improved gradually.
Also, this graph is on Apple Mac sales growth from 2003 to 2009. As we can see, the sales were not stable and the figure fluctuated. A researcher reported that “Apple’s Mac busi¬ness is some¬what cycli¬cal and not com¬pletely depen¬dent on the broader PC mar¬ket.” And releasing new version or model is directly reflected on sales. In other words, models that are not refreshed quickly enough tend to have a neg¬a¬tive impact on sales.
For these reason, we can assume that the stock of Apple Inc. is cyclical.
3. Analysis on Apple Inc.
Financial statements analysis
1. Income statement
.
Currency in USD All numbers in thousands
Period Ending Sep 25, 2010 Sep 26, 2009 Sep 27, 2008
Total Revenue 65,225,000 42,905,000 32,479,000
Cost of Revenue 39,541,000 25,683,000 21,334,000
Gross Profit 25,684,000 17,222,000 11,145,000
Operating Expenses
Research Development 1,782,000 1,333,000 1,109,000
Selling General and Administrative 5,517,000 4,149,000 3,761,000
Total Operating Expenses 7,299,000 5,482,000 4,870,000
Operating Income or Loss 18,385,000 11,740,000 6,275,000
Income from Continuing Operations
Total Other Income/Expenses Net 155,000 326,000 620,000
Earnings Before Interest And Taxes 18,540,000 12,066,000 6,895,000
Interest Expense - - -
Income Before Tax 18,540,000 12,066,000 6,895,000
Income Tax Expense 4,527,000 3,831,000 2,061,000
Net Income 14,013,000 8,235,000 4,834,000
Preferred Stock And Other Adjustments - - -
Net Income Applicable To Common Shares $14,013,000 $8,235,000 $4,834,000
In 2010 Apple’s total revenue grew by $23billion, and its net income is almost twice as much as that in 2009.
2. Balance sheet
Currency in USD. All numbers in thousands
Period Ending Sep 25, 2010 Sep 26, 2009 Sep 27, 2008
Assets
Current Assets
Cash And Cash Equivalents 11,261,000 5,263,000 11,875,000
Short Term Investments 14,359,000 18,201,000 12,615,000
Net Receivables 11,560,000 6,192,000 6,151,000
