Apple Inc Financial Analysis


Apple Inc. is a unique company that is primarily focused on the entertainment industry. The company has existed for more than 40 years since its establishment in 1977. Apple has always been loyal to its marketing and design strategy, an element that has resulted in the company positioning itself as a cult brand recognized by customers internationally (Eaton, 2016). The analysis of the company’s financial statement entails the general comparison of the company’s financial influencing aspects as well as analysis of its financial ratios which provides an in-depth analysis of the financial performance and how it affects the company’s operations (Lazonick, 2017). The key influencing factors of Apple’s financial statements for the past five years include the operating profit, revenues, cost of sales, net profit and per share earnings which indicate the overall financial performance of the company (Lockamy, 2017).


Apple Inc. has in the past five years increased its investments in research and development of new products and retails braches. This resulted to the launching of the iPad and the new generation of iPhone in 2013 which has gained the great attention from the public to the company in improving its image and enhancing its desirability in the minds of investors and shareholders (Smith, Betts & Smith, 2018). Additionally, the company increased its revenue by more than 60% between 2013 and 2017 thus enabling it to take a leasing position in the personal computer market despite price sensitivity and competition of consumers (Nielson, 2014). Due to the fact that Apple Inc. does not pay dividends per share to its shareholders, the company has enough financial resources to reinvest and develop its product for the purpose of maintaining a peer position in the market. For instance, the company’s earning per share (EPS) increased by 67% to $18.35 in FY 2017 from $8.5 in FY 2013. It also reveals an increase in investment in the company's shares which most likely result from Apple's positive consumer and investor awareness through the introduction of its new product developments (Wilson, 2018).