Introduction
Apple
Inc., formerly Apple Computer,
Inc., is a multinational corporation that creates consumer electronics, computer
software, and commercial servers. Apple's core product lines are the iPad, iPhone, iPod music player, and Macintosh computer line-up. Founders Steve
Jobs and Steve
Wozniak effectively created Apple
Computer on April 1, 1976, with the
release of the Apple I,
and incorporated the company on January 3, 1977, in Cupertino, California. For more than two decades, Apple Computer was
predominantly a manufacturer of personal computers, including the Apple
II, Macintosh, and Power
Mac lines, but it faced rocky
sales and low market share during the 1990s. Jobs, who had been ousted from the
company in 1985, returned to become Apple's CEO in 1996 after his company NeXT was bought by Apple Inc., and he brought with him a new
corporate philosophy of recognizable products and simple design. With the
introduction of the successful iPod music player in 2001, Apple established itself as a
leader in the consumer electronics industry, dropping "Computer" from
its name. The latest era of phenomenal success for the company has been in the IOS range of products that began with the iPhone, iPod Touch
and now iPad. As of 2011[update], Apple is the largest technology firm in the world, with
annual revenues of more than $60 billion.
Apple is a consumer goods company, and therefore
evaluating its value requires understanding its products and consumers. This
can be very difficult because Apple competes with many different companies
throughout the different industries it takes part in. A good description from Wikipedia describes Apple: "For reasons varying from its
philosophy of comprehensive aesthetic design to its distinctive advertising
campaigns, Apple has established a unique reputation in the consumer
electronics industry." One of the most unique things about Apple is that
it has
a very strong customer base. This is
extremely important in understanding Apple!
Another thing to know about Apple is that a lot of press
is associated with their CEO, Steven P. Jobs. He is seen as the architect of
many of Apple's amazing products, and the reason for their success. His
presentations at Apple's media events
are "electrifying" and revolutionary. Given his superstar image, his
status and health as Apple's CEO ties into how investors value Apple, and for
this reason we must follow him. For instance, earlier in the year there was an inaccurate
report that he sustained a heart attack, and rumors flew through the internet, briefly dropping
Apple's stock price 5%.
Comparing a Steve Jobs presentation to most presentations
is nearly impossible — he’s in a league all his own. In my opinion, Apple chief
executive Steve Jobs is the most charismatic pitchman in business today. His
presentations are brilliant demonstrations of visual storytelling that motivate
customers, employees, investors, and the entire computer industry.
Apple INC Early Developments
The company early in 1971, at the age of 16 Steve jobs and 21 year old Steve Wordsworth, Virginia (two history forever of Steve jobs Cardiff's friend introduced and meet the).
In 1976, success in persuading jobs woz of the machine more and more than assembly to sell, they another friend, ROM Wayne (Ron Wayne) also join, three in April 1, 1976 the company of apple computer. In The same year may, jobs and a local computer store The Byte Shop negotiation, officials say if The computer assembled perfectly will be interested. The shopkeeper Paul tyreal (Paul Terrell) be much more long term, he'd like to order 50 department, and on delivery to pay $500 each. Steve jobs made this an order, in order to raise money and sell their various valuable things to fundraising (like a computer and a mass van). Steve jobs to large electronic components distributor Cramer Electronics order parts, store credit manager asked how a jobs bill, he said: "I have a Byte Shop to book me 50 computers order, payment is to cash on delivery, if you give me 30 days payment, I can in the time limit for the payment of the computer assembly in good, delivery to terry then later paid account." The manager was at the Pacific Ocean at the IEEE computer at the conference tyrael query, surprised at the tough jobs, tyreal confirmation of order to the manager said that if the delivery to his words jobs, jobs must have enough money to pay. Their three people and two friends family car borrow jobs all day and night to assembly room and marathon test, and finally, on deadline to tyrael delivery, tyreal as had promised pay jobs, make him pay the components of the bill, and make a substantial amount of use to celebrate and from a venture capital to testing field for. Highest market value
This was later named Apple I computer have several significant characteristics. When most computer doesn't have the monitor, Apple I but to TV as a display. Contrast the display of the later, Apple I display function can only slowly that 60 words per second. In addition, the host of the ROM includes guide (Bootstrap) code, which make it easier to start. Finally, in Paul terry's insistence, also designed a woz for loading and storage procedures with the cassette tapes of interfaces to 1200 m bit/SEC speed high-speed operation. Although Apple I design is quite simple, but it still is a masterpiece, and the host than other parts need less won the masters of design woz reputation. Finally Apple I were produced 200 department. Steve jobs has died in 2011. After this, woz has successfully designed more advanced than Apple I the Apple II. Steve jobs wants to expand and the company will be to the bank, but Wayne for four years ago to the risk investment failure psychological shadow and quit. At the time, the lack of capital source apple computer. Steve jobs finally meet Michael horse khoja (" Mike "Markkula), Michael khoja horse inject $92000 and jobs and signed the $250000 bank loan, in January 1977, apple computer company was registered as' apple computer Co., LTD". Had the money and new design scheme in hand, in April, Apple II of the West bank in the first Computer exhibition (West Coast Computer Fair) available for the first time. Apple II and Apple I biggest difference including the redesigned TV interface, which shows that it is integrated into the memory, this more than help show that simple words, including images, even have a color display. And there is a improved shell and keyboard. Apple II in the computer world is widely known as creates the market product family computer, in the 1980 s has sold millions of department. Apple II family produce a lot of different models, including Apple IIe and IIgs, the new computer until the end of the 1990 s in many school can still be found. When apple market in 1980, when, they attract capital than in 1956 after ford listed any initial public offerings of shares of the company (IPO), and any history than we create more millionaires. In five years the company has entered the world company 5,, was the fastest record.
This was later named Apple I computer have several significant characteristics. When most computer doesn't have the monitor, Apple I but to TV as a display. Contrast the display of the later, Apple I display function can only slowly that 60 words per second. In addition, the host of the ROM includes guide (Bootstrap) code, which make it easier to start. Finally, in Paul terry's insistence, also designed a woz for loading and storage procedures with the cassette tapes of interfaces to 1200 m bit/SEC speed high-speed operation. Although Apple I design is quite simple, but it still is a masterpiece, and the host than other parts need less won the masters of design woz reputation. Finally Apple I were produced 200 department. Steve jobs has died in 2011. After this, woz has successfully designed more advanced than Apple I the Apple II. Steve jobs wants to expand and the company will be to the bank, but Wayne for four years ago to the risk investment failure psychological shadow and quit. At the time, the lack of capital source apple computer. Steve jobs finally meet Michael horse khoja (" Mike "Markkula), Michael khoja horse inject $92000 and jobs and signed the $250000 bank loan, in January 1977, apple computer company was registered as' apple computer Co., LTD". Had the money and new design scheme in hand, in April, Apple II of the West bank in the first Computer exhibition (West Coast Computer Fair) available for the first time. Apple II and Apple I biggest difference including the redesigned TV interface, which shows that it is integrated into the memory, this more than help show that simple words, including images, even have a color display. And there is a improved shell and keyboard. Apple II in the computer world is widely known as creates the market product family computer, in the 1980 s has sold millions of department. Apple II family produce a lot of different models, including Apple IIe and IIgs, the new computer until the end of the 1990 s in many school can still be found. When apple market in 1980, when, they attract capital than in 1956 after ford listed any initial public offerings of shares of the company (IPO), and any history than we create more millionaires. In five years the company has entered the world company 5,, was the fastest record.
Apple I
Trend Analysis
I am going to do the 4 ratios analysis based on the
calculations I have done for the past years of the Apple. The reason why I do
it is to make a trend analysis and facilitate comparisons for the Apple Inc.,
in order to highlight the weakness and strengths of it.
First of all, Current ratio which is the ratio focuses on
current assets ad current liabilities. It is belong to the short-term solvency
ratios which are intended to provide information about a firm’s liquidity. So,
they are also called liquidity measures. That is to say, the current ratio is
used to know a firm’s ability to pay its bills over the short run without undue
stress. The current ratio is defined as:
Current ratio = Current asset/Current liabilities
Now let us look how the current ratios have changed over
the past years period for the Apple. From 2006-2009, the current ratios are
respectively 1.014066, 1.743653, 2.871501, 1.015852. According to the numbers,
we can know that the current ratio in 2008 is the highest. So, is it best? I
would like to say-Not necessarily. The reason is that, to a firm, a high
current ratio indicates liquidity, but it also may indicate an inefficient use
of cash and other short-term assets. However, for a healthy firm, the current
ratio is usually higher than one. But,
as a short-time creditor, 2008 is the best year. Because for them, the higher
of the current ratio, the better.
After the Short-term solvency, let’s see one of the
long-term solvency measures-TIE ratios. TIE ratios which is named the times
interest earned ratio which is an common measure of long-term solvency in order
to measures how well a company has its interest obligations covered, and it is
often called the interest coverage ratio. And it is defined as:
Times Interest earned ratio = EBIT/Interest
So, let us see the
numbers, from 2006-2009, the TIE ratios are 1.774243, 2.590618, 1.098983,
-2.10732. From all of these numbers, we can tell that the company was doing a
lost. At 2009, the IIE was unexpectedly a negative number. It shapely decreased
compared with the last pasted three years. However, there is a problem with the
IIE ratios which is that is based on EBIT, which is not really a measure of
cash available to pay interest. So, it is necessarily means the company did a
real lost during 2009. It just shows the trend for the company was going down.
We next turn our attention to the efficiency of how the
company uses its assets. So, we are going to move to the Inventory turnover
which can be formula as:
Inventory turnover = Cost of goods sold / Inventory
The inventory turnover which is one kind of asset
utilization ratios that are intended to describe how efficiently, or
intensively, a firm uses its assets to generate sales. And then let us use the
numbers to analysis, form 2006-2009, the numbers of the Inventory turnover are
respectively: 1.486978, 1.523671, 1.49713, and 1.263395. We can find the
numbers are almost keep in a constantly lever. So, it can reflect that the
company managed its assets steady during those years. But, I have to say, as
long as the company is not running out of stock, the higher this ratio is, the
more efficiently it is managing inventory.
At last, we are going to look at one of the profitability
measures-Profit Margin. It is used to measure how efficiently the firm uses its
assets and how efficiently the firm manages its operations. It can be defined
as:
Profit margin = Net income/Sales
From 2006-2009, the profit margin are 0.03999, 0.025891,
0.00199, -0.16195, the company was committing an obviously lost. The profit
margin was decreasing year by year. So, normally, a relatively high profit
margin is good.
Peer Analysis
As
we all know, the competitors are around anywhere and anytime for any field of
Business. According to http://finance.yahoo.com/q/co?s=AAPL , Apple also has some direct competitors. Such as,
Google Inc., Hewlett-Packard Company and so on. And then, I am going to compare
some recently data of finance ratios between Apple Inc. and Google based on the
website of www.reuters.com.
Below is the recently data of some finance ratios for the two companies:
Apple Google
Current ratio: 1.58 5.63
Total debt -equity: 0 7.67
Inventory turnover:
70.53 20.3
Profit margin: 20.95 26.78
Price-sale ratio: 3.22 5.39
According to the data, it is not hard for us to find,
there is a huge difference between these two companies. Google has a much higher current ratio than
Apple, as I mentioned before, it may indicate liquidity or an inefficient use
of cash and other short-term assets.
However, from the Total-debt to equity, we can see Google has a way more
long-term debt than Apple. Moreover, the Inventory turnover ratio of Apple is
much higher than the Google’s, which means, Apple did much better than Google
in managing the inventory or asset. The Profit margin and Price-sales ratio are
almost similar.
Conclusion
Based on the most recently date of some financial ratios,
it obviously shows Apple Inc. is doing a great job at this time and age compare
with its directly competitor-Google Inc.
Even though the trend analysis shows, during the past few years, was not
so good.
No comments:
Post a Comment