Apple Financial Management

As we all know, companies are in business to make money. A company may have the best product on the market or in every household but the question still remains. Are they making money? In this section, we will be taking a detail look at the financials of Apple since the lunch of the first Iphone in 2007. On June 29, 2007 (the first day of the Iphone) apple was trading at $ 121 dollars a share. At year end September 29st 2007, just three months after the first Iphone release, Apple was trading at $ 154 dollars. That’s a 27 % increase in share price.

As impressive as that sounds, there are other ratios that are used by managers and investors to analyze and forecast the profitability and efficiency of a company. Let us take a look at some of these ratios and how they apply to Apple. Apple Inc. (NasdaqGS: AAPL ) Price/Earnings(PE) Profit Margin Debt to Equity ROA ROE 2010 15. 2 23. 53 0. 00 % 22. 25 % 41. 99 % 2009 28. 2 19. 2 % 50. 1 % 12. 21 % 26% 2008 15. 9 16. 3 % 62. 2 % 14. 89% 27. 4 % Fiscal Year 2009 versus 2008 Net sales during 2009 increased $5. 4 billion or 14% compared to 2008.

Several factors contributed positively to these increases, including the following: • Iphone revenue and net sales of related products and services amounted to $13. 0 billion in 2009, an increase of $6. 3 billion or 93% compared to 2008. Fiscal Year 2010 versus 2009 Net sales during 2010 increased $22. 3 billion or 52% compared to 2009. Several factors contributed positively to these increases, including the following: • Net sales of Iphone and related products and services were $25. 2 billion in 2010 representing an increase of $12. 1 billion or 93% compared to 2009.