Tài chính kinh doanh financial report of apple inc

Cash Flow from Operating Activities: Apple's cash flow from operating activities has shown a positivetrend over the years.. Apple's positive trend in cash flow from operating activities

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Table of content

I FINANCIAL STATEMENT 2

1.1 INCOME STATEMENT 2

1.2 BALANCE SHEET 3

1.3 STATEMENT OF CASH FLOWS 4

1.3.1 Cash Flow 6

1.3.2 Free Cash Flow (FCF) 7

1.3.3 Operating Cash Flow/Net Sales ratio 7

1.3.4 Comprehensive Free Cash Flow Coverage Ratio 7

II FINANCIAL RATIOS 7

2.1 Apple's Asset Ratios 8

2.1.1 Fixed Asset Turnover 8

2.1.2 Days Sales Outstanding 9

2.1.3 Inventory Turnover 10

2.2 Apple’s Profitability Ratios 10

2.2.1 Return on Assets (ROA) 10

2.2.2 Return on Equity (ROE) 11

2.2.3 Net Profit Margin 11

2.2.4 Gross Profit Margin 12

2.2.5 Operating Profit Margin 13

2.3 LIQUIDITY RATIO 13

2.4 DEBT RATIO 14

2.4.1 Debt Ratios 15

2.4.2 Debt Ratio 16

2.4.3 Debt to Equity Ratio 17

2.4.4 Times Interest Earned 17

2.4.5 Reasons why Apple has so much debt 18

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- The continued popularity of Apple's products, such as the iPhone, iPad, and Mac.

- The growth of Apple's services business, such as the App Store, iCloud, and Apple Music

- The expansion of Apple's international sales

Apple's financial performance has been strong over the past 5 years The company has been able to grow its revenue and net income while maintaining a healthy gross profit margin This is a testament to Apple's strong brand, innovative products, and efficient operations

However, it is important to note that Apple's growth is slowing In 2022, Apple's revenue growth was only7.79%, which was down from the 33.44% growth it saw in 2020 This slowdown is likely due to a number of factors, including:

The global chip shortage, which has impacted Apple's ability to meet the demand for its products.The ongoing trade war between the United States and China, has made it more difficult for Apple to sell its products in China

The increasing competition from other smartphone manufacturers, such as Samsung and Huawei.Despite these challenges, Apple remains one of the most successful companies in the world The companyhas a strong brand, innovative products, and a loyal customer base These factors should help Apple continue to grow its revenue and net income in the years to come

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Total Liabilities 302,083 287,912 258,549 248,028 258,578Common Stock 64,849 57,365 50,779 45,174 40,201

-Retained Earnings -3,068 5,562 14,966 45,898 70,400Other

Total Equity 50,672 63,090 65,339 90,488 110,601Total Equity &

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Current Assets:

Current assets, including cash, short-term investments, accounts receivable, and inventory, have increasedfrom $93.4 billion in 2018 to $135.4 billion in 2022, indicating a strong liquidity position for thecompany

Property, Plant, and Equipment (PPE):

Apple's PPE has increased from $41.3 billion in 2018 to $42.1 billion in 2022, indicating that the company is investing in its infrastructure to support growth

Current Liabilities: Apple's total liabilities increased from $258.6 billion in 2018 to $302.1 billion in

2022 The increase in total liabilities is primarily due to an increase in long-term debt, which suggests thatthe company is taking on more financial risk to invest in its business or return cash to shareholders.Total Liabilities: Apple's total liabilities have increased from $258.6 billion in 2018 to $302.1 billion in

2022, primarily due to an increase in long-term debt

Total Equity: Apple's total equity decreased from $110.6 billion in 2018 to $50.7 billion in 2022 Thedecrease in total equity is primarily due to a decrease in retained earnings, which may be due to increaseddividends or share buybacks

Overall, Apple's balance sheet shows a strong liquidity position with high current assets and manageablelevels of debt The company's investment in PPE and stable total assets show that Apple is well-positioned for continued growth However, the decrease in retained earnings and total equity over the pastfive years may indicate that the company is returning more cash to shareholders or pursuing otherstrategies that are reducing its equity position

1.3 STATEMENT OF CASH FLOWS

Cash flow analysis is an important aspect of a company's financial management because it underscoresfor the company the cash that's available to pay bills and make purchases—generally, money it needs torun and grow the business Companies, investors, and analysts examine cash flow for various reasons,including for insight into a company's financial stability and health, and to inform decisions aboutpossibly investing in a company

Statement of Cash Flow (All numbers in millions)

Net Income/Loss 99,803 94,680 57,411 55,256 59,531Total Depreciation And

Amortization - Cash Flow

11,104 11,284 11,056 12,547 10,903Other Non-Cash Items 10,044 2,985 6,517 5,076 -27,694Total Non-Cash Items 21,148 14,269 17,573 17,623 -16,791Change In Accounts

Receivable

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Change In Inventories 1,484 -2,642 -127 -289 828Change In Accounts

Assets/Liabilities

1,200 -4,911 5,690 -3,488 34,694Cash Flow From

Operating Activities

122,151 104,038 80,674 69,391 77,434Net Change In Property,

Plant, And Equipment

Term Investments

633 -1,518Net Change In

Investments - Total

-9,560 -3,075 5,453 58,093 30,845Investing Activities -

Issued/Repurchased

-89,402 -85,971 -72,358 -66,116 -72,069Total Common And

Financial Activities

-110,749 -93,353 -86,820 -90,976 -87,876Net Cash Flow -10,952 -3,860 -10.,435 24,311 5,624Free Cash Flow 111,443 92,953 73,365 58,896 64,121Stock-Based

Compensation

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Discover more from:

Cash Flow from Operating Activities: Apple's cash flow from operating activities has shown a positivetrend over the years In 2018, the cash flow from operating activities was $77.434 million, and itincreased by approximately 12% in 2019 to $69.391 million In 2020, there was a further increase ofabout 16% to $80.674 million Apple's positive trend in cash flow from operating activities can beattributed to its strong product line-up, brand loyalty, and effective cost management The company hasbeen able to generate substantial cash from its core business operations, driven by consistent demand forits iPhones, Macs, iPads, and services.

Cash Flow from Investing Activities: The cash flow from investing activities has experienced significantfluctuations In 2018, the cash flow from investing activities amounted to $16.066 million However, in

2019, there was a notable shift to a positive cash flow of $45.896 million, indicating increasedinvestments and acquisitions In subsequent years, the cash flow from investing activities fluctuated, withnegative values recorded in 2020 (-$4.289 million) and 2022 (-$22.354 million) The fluctuations in cashflow from investing activities reflect Apple's strategic decisions regarding investments and acquisitions.The positive cash flow in 2019 indicates significant investments and acquisitions made during that period,while negative values in other years suggest more modest investment activity or divestitures

Cash Flow from Financing Activities: The cash flow from financing activities has generally beennegative, indicating more cash outflow than inflow related to financing activities In 2018, the cash flowfrom financing activities amounted to -$87.876 million The trend continued with negative values insubsequent years, with a slight improvement in 2022 (-$110.749 million) The negative cash flow fromfinancing activities is primarily driven by debt issuances, repurchases of equity, and dividend payments.The negative cash flow from financing activities is primarily due to Apple's debt issuances, equityrepurchases, and dividend payments These actions are part of the company's capital structure andfinancial management strategies, including leveraging debt to fund operations or return value toshareholders

Overall, Apple has maintained a positive net cash flow, indicating a strong financial position The positivecash flow from operating activities highlights the company's ability to generate cash from its coreoperations However, the fluctuations and negative trends in cash flow from investing and financingactivities can be attributed to Apple's investment decisions, debt management, and dividend payments It'simportant to note that these trends are subject to the company's strategic initiatives, market conditions,and financial goals, which can influence cash flow patterns

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1.3.2 Free Cash Flow (FCF)

Apple's FCF has been consistently positive over the past five years, with a total of $401.8 billiongenerated over the period FCF has been driven by strong operating cash flows, offset by significantinvestments in PP&E and acquisitions FCF increased significantly from $64.1 billion in 2018 to $111.4billion in 2019, before declining to $92.9 billion in 2020 and increasing again to $111.4 billion in 2022

1.3.3 Operating Cash Flow/Net Sales ratio

Indicates how much cash is generated for every dollar of sales made by the company

1.3.4 Comprehensive Free Cash Flow Coverage Ratio

This ratio measures the ability of a company to cover its capital expenditures and dividend payments withits free cash flow In Apple's case, this ratio has remained consistently high over the past five years,indicating that the company has enough free cash flow to cover its capital expenditures and dividendpayments In 2022, the comprehensive free cash flow coverage ratio was 1.92, which is a positive sign forinvestors

Overall, Apple has shown strong financial performance over the years, with positive operating cash flow, consistent free cash flow, and strategic investments in long-term growth opportunities The company has also been returning value to its shareholders through dividend payments and share repurchases while reducing its debt.

II FINANCIAL RATIOS

The value of financial ratios stems from their capacity to indicate how Apple performs as a percentage of

a benchmark We may compare financial ratios in a meaningful way with industry competitors andhistorically by utilizing percentages These comparisons enable us to spot performance and other patternsinside a corporation with relative simplicity We will compare the financial ratios of Apple Inc to itsbiggest competitors: Samsung Electronics Co., Ltd

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2.1 Apple's Asset Ratios

In simplest terms, asset utilization ratios assess how well Apple's management team uses its limitedresources Popular asset utilization ratios include inventory turnover, fixed assets turnover, and manymore

Total Asset Turnover

The total asset turnover ratio shows how much revenue Apple generates in terms of its assets undermanagement

Formula:

Total Asset Turnover = Sales / Total Assets

Analysis:

Apple’s total asset turnover has been increasing steadily over the last five years, from 0.73 in 2018 to 1.12

in 2022 while Samsung company have decreased from 0.8 in 2018 to 0.7 in 2019 and have remained thesame in turnover until 2022 The increase in Total Asset Turnover of Apple company in 2022 suggestsimproved efficiency compared to the previous year It indicates that Apple has been successful ingenerating more sales relative to its total assets, indicating improved asset utilization

2.1.1 Fixed Asset Turnover

The object of this ratio is to determine whether Apple is fully utilizing its property, plant, and equipment

to generate revenues For this analysis, a review of historical trends, as well as comparing them toindustry competitors, are excellent choices for financial analysts

Formula:

Fixed Asset Turnover = Sales / Fixed Assets

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Analysis:

In 2018, Apple’s fixed asset turnover was 6.4 In the next four years, the firm would continually improvethe utilization of its fixed assets, ending 2022 at 9.36 This shows that the company is improving theutilization of its fixed assets on a continuous basis, which is way more efficient than Samsung - only anaverage of around 2.0

2.1.2 Days Sales Outstanding

The days’ sales outstanding ratio shows investors how long it takes Apple to collect funds from the sale oftheir products or services The quicker Apple can collect its money, the quicker it can reinvest the fundsinto operations Thus, a low day count is optimal

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2.1.3 Inventory Turnover

The inventory turnover ratio tells investors how many times Apple was able to cycle through its inventorystock As with most asset utilization ratios, this calculation is best analysed using historical records, aswell as competitors’ comparable ratios

2.2 Apple’s Profitability Ratios

Because of this essential topic, finance professionals have come up with various profitability ratios Theseratios take a look at Apple’s profits from different perspectives By reviewing profits from differentangles, investors can have a well-rounded understanding of the profitability of an organization

2.2.1 Return on Assets (ROA)

With this ratio, investors prefer to see a relatively high return on assets This indicates that theorganization is optimally using assets to generate profits

Formula:

ROA = Net Income / Total Assets

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Analysis:

Apple’s return on assets ended 2018 at 16.28% Over the next five years, the organization wouldsubstantially improve its return on assets ending 2022 at 28.29% This shows that the firm is doing anexcellent job not only with growing sales with fewer assets but also in controlling asset growth as well.Apple’s return on assets has outperformed Samsung for over 5 years

2.2.2 Return on Equity (ROE)

This elation is because the return on equity ratio indicates to investors how much a company made inprofits in relation to equity invested This trend shows that a company is making more profits with equityused

2.2.3 Net Profit Margin

If you want to see how well a management team is doing, check out Apple’s net profit margins This isbecause just about all line items between revenues and net profits are under the control of the company’s11

management team Increasing net profits are fantastic However, declining net profits, over time, aredisturbing.

2.2.4 Gross Profit Margin

The gross profit margin tells investors, in percentage form, how much funds are available after rawmaterials are paid The higher the gross profit margins, the more money is available to pay for other costswithin the company

Formula:

Gross Profit Margin = (Revenues – COGS) / Revenues

Analysis:

Apple’s gross profit margin has been continually improving, for the most part, over the last three years In

2019, the organization’s gross profit margin was 37.82% In the next three years, the gross profit margin12

would grow moderately to 43.31% This shows that the firm was doing an excellent job in negotiatingraw material costs, or they were passing along increased raw material costs to their customers throughhigher product prices Regardless of which hypothesis holds true, the result is the same, a healthy grossprofit margin consistently In the last 5 years, the gross profit margin of Samsung was higher than Apple

in 2020 and 2018 while Apple had the gross profit margin greater than Samsung in 2022, 2021 and 2019

2.2.5 Operating Profit Margin

The operating profit margin ratio helps investors understand how much profits, from the perspective ofoperations, Apple is generating as compared to total sales for the same timeframe This ratio is a greatindicator of how well the company’s management team is controlling operations

2.3 LIQUIDITY RATIO

Apple has a current ratio of 0.94 It indicates that the company may have difficulty meeting its currentobligations Low values, however, do not indicate a critical problem If Apple has good long-termprospects, it may be able to borrow against those prospects to meet current obligations

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