Business Analysis Part 2 - Apple Computers

Business Analysis Part II: Apple Computers

Understanding the financial vigor of any organization is vital when trying to decide if it would be a good investment. This can be accomplished by reviewing the company’s financial statements; such as: balance sheets, income statements, profits, and revenue. In this paper the financial well -being of Apple Computers will be assessed to determine if it is good investment or not.

Financial Statements

These types of statements can help tremendously in gaining insight in to the company’s financial vitality. A company that is thriving financially when compared to others in the same market area could be a potentially good investment. The type of statements that should be reviewed consists of flow sheets, income statements, flow sheets, equity evaluations, etc. How much a company spends in relation to what they make is show on the income statement sheets; the cash flow sheets will show how the money is exchanged between the business and its customers or productivity line. The equity will show how the shareholders benefit based on how the interest changes overtime. A detail list of the company’s assets along with its liabilities can be seen on the balance sheet, as well as the equity that will be left over for the shareholders.

2012 Financial Statement for Apple Computers and Competitors

According to Apple Press Info, 2012: Apple announced on April 24, 2012 that at the end of its second quarter that ended March 31, 2012 the company had quarterly revenue of $39.2 billion and quarterly net profit of $11.6 billion or $12.30 per diluted share. The previous year of the same quarter showed revenue of $24.7 billion and net profit of $6.0 billion or $6.40 per diluted share. The Gross margin was 47.7 percent compared to 41.4 percent in the quarter the previous year. International sales accounted for 64 percent of the quarter’s revenue (Apple Press Info, 2012).

Apple has competitors such as Hewlett Packard and Nokia to name a couple; it is beneficial to look at the competitors to see where Apple stands. According to HP News Release, 2012 Hewlet Packard announced financial results for its second fiscal quarter that ended April 30, 2012 with a revenue of $30.7 billion with diluted earnings per share of $0.98 for non GAAP and $0.80 for GAAP. The revenue for the second fiscal quarter were down 3% from the previous year and they had a