Apple Financial Performance
This financial analysis for Apple Inc was carried out for the year 2007.
The first section of the Financial Analysis will detail my preconceived notions of Apple (without the facts in hand). The second part of the Financial Analysis will review Apple's stock performance, various financial ratios, competitors, market segment. Interest coverage ratios, dividend yield ratios, and dividend payout will be discussed as well. The financial analysis will conclude with my opinion of Apple's future prospects, its stocks, and whether it is creating value to its shareholders.
Apple General Information
On January 3, 1977, Apple was officially ...view middle of the document...
Apple did have a stock dividend in the year of 2000 and 2005. Apple had a 2-for-1 stock split in February 28, 2005, and June 20, 2000. The stock dividend was declared February 11, Recorded of February 18, and was Payable on February 28 for the year of 2005. For the year 2000, 2-for-1 Stock Split was declared on April 19, recorded on May 19, and was Payable on June 20, 2000.
Apple, Inc. Competitor Dividend Policy
Apple's main competitors in "Computer Hardware" include Dell Inc., Hewlett-Packard Co., Microsoft Corp., and Cisco Systems, Inc. Dell Inc. and Cisco Systems, Inc have no dividend policy, thus matching Apple's dividend policy. HP on the other hand pays a dividend of $.08 every quarter. HP has been paying this same dividend since second quarter of 1998. Beginning 2005, Microsoft shifted from its annual dividends to quarterly dividends. And in September of 2006, Microsoft announced that it would increase its quarterly dividends by $.01 and pay $.10 quarterly dividends to its shareholders. The Quarterly Dividend Record date for Microsoft shareholders is November 16, 2006.
Apple, Inc. Key Statistics
As of January 18, 2007, Apple's Current Market Rate is about $76.54 billion (from Yahoo Finance). Apple, Inc. beta is 2.41 on Yahoo, while Reuters shows Apple, Inc. beta as 1.47, I am not sure which of the either is accurate or obsolete. Apple, Inc. has 859.27 million shares outstanding, of which insiders hold institutions hold 4.76% and 77.50%. At 4:01 PM EST, Apple's stock traded at $89.07, down 6.19%.
For 52 weeks Ending 2001-09-29, Apple had $5,363 million in revenues, gross profit of $1,235 million, and a NEGATIVE operating income of $344 million. It incurred a loss of $52 million before tax, and Income after Tax was NEGATIVE $37 million. Apple improved its position in the next year, having revenues of $5,742 million, gross profit of $1,603 million, and a positive income of $17 million. Apple's income after tax for the fiscal year was $65 million. For Fiscal Year ending 2003-09-27, Apple increased its Total revenue and expenses. Apple's total revenues stood at $6,207 million, negative total expenses of $6,208 million. Apple's income after tax stood at $68 million, and a net income of $69 million. The next Fiscal Year - 2004-09-27, saw a considerable rise in Total Operating expenses and revenues. Apple, Inc. net income stood at $266 million - a whopping increase of 285.5% over the previous year. Fiscal years ending in 2005 and 2006 both saw a tremendous rise in Apple's revenues. Apple income after tax for 2005 was $1,328 million an astonishing increase in revenues of 399.24%. For fiscal year ending 2006-09-30, Apples income after tax was $1,989 million, an increase of 49.7%. Apple's earning per share for the fiscal year ending 2006-09-30, was $2.27, the previous year: $1.55, and year the before $.36. Apple has consistently been providing value to its shareholders as one can infer after reading the data. From a loss of $37...