Apple Inc Investment Report
There are several factors which are considered when choosing a good investment company. They include the level of return, risks, the management, and projection of the returns as well as the nature of the industry. One of the companies which have got sound financial outlay and effective management is Apple Limited Company. The chosen firm in this case is Apple Inc. which is an American giant technology firm which designs, manufactures and also distributes wide range of services and commodities. The value of the share price is a strong indicator that the company has been doing well for the last decade. The ticker symbol of the firm in the stock market is (AAPL), which represents the firm in the securities and stock exchange market.
Examination of the company shows that the Current value of the stock price is 187. 23 which is an increase by +0. 025 percent. Close evaluation of the economic information is that the firm has got sound strategic management of resources. The allocation of funds is done with a view of ensuring growth and creating a competitive edge. There is prudent management of the cash flows and hence high level of revenue generation. The company has got reinvestment plans and expansion to the new markets. The value of the debt to equity is well balanced hence little risks associated with solvency. The compound annual growth rate is over 84 percent, making it one of the highest growing firms in the industry. The market forecast is that the firms earning’s in the next five years will grow by over 25 percent in a single year.
There is not strong competition in the market, something which makes the firm to enjoy tremendous growth in the technology industry. The firm has got strong research culture which makes it stay ahead of the other firms. The growth rate of Dell Limited Company is +0. The trends in the market indicate that there will be growth due to high level of demand. There are new commodities which are likely to increase the growth rate and reduce the risk level associated with portfolio management. The company has undergone four stock splits. The stock splits have happed from the time it went public. The latest split of the company happened in June, 2014. 29 percent based on a financial year. The figure was however a growth based on duration of the last five years ("Yahoo Finance").
The company is hence experiencing good market features which are attractive for investors. According to the analyst of the stock for the company, it is likely to hit 189. 25 based on growth rate and the structure of the company. He earns an annual income of $100,000. Michael lives in Florida U. S. Being a businessman his wish is to invest in the best stock that will earn him good returns. According to me Apple Inc. The two common liquidity ratios include current ratio and quick ratio. The calculation of the current ratio is done by the formula below. Current ratio Current ratio = the total current total assets ÷ current total liabilities The value of the current ratio in the company shows a positive trend.
In the year 2015, it was 1. 11, then went to 1. A table showing the ratio analysis for the Apple Limited Company for the last three years Year 2015 2016 2017 Current Ratio 1. 28 Quick Ratio 0. 09 Earnings Per Share 9. 21 Price Earnings Ratio 9. 25 Debt to Equity Ratio 0. 31 to 9. 21 in 2017. Price earnings ratio The calculation of the price earnings per share is very crucial indicator on the trend of the shares in the market. It shows the value of the expected price on basis of the company earnings. If the earnings rise, the market value of the share goes high (Womack, 2013). The formula for the (D/E) Ratio is a outlined below. Debt to the Equity (D/E) Ratio = Total liabilities ÷ Stockholders’ Equity The value of the debt to equity ratio in Apple Inc.
shows an increasing trend in the year 2015, the value was 0. 45 while in the year 2016; the figure was 0. 59 which is higher than the previous year. The decline shows that the management used more assets but the level of return was relatively lower. It went down to 13. 87 in the year 2017. The company should boost the value of ROA through effective use of resources. Return on Equity Return on Equity shows how the company uses the internal resources to generate income. They include decline in the value of the stocks due to market changes. Close evaluation shows the technology industry changes due to innovation and development of new products which may hit the entire industry. The market performance of the company shows that there is poor utilization of the assets allocated.
The return on assets in the company is also declining. The decline poses risks to investors. The Dividend and Yield of the Apple Limited Company is $. 73 per unit share, showing high levels of return while the dividends offered are among the highest in the world. The condition makes one of the firm top profitable organizations to the stockholders in the globe. There is also effective use of the assets and equity according to the ratios. The amount of returns are relatively high, hence a good opportunity in the market. C. Fundamentals of Financial Management. New Delhi, India PHI Learning Private Limited Progress Report (2018). Apple Supplier Responsibility: Driven by Responsibility to people and Planet. Retrieved from https://images. H. Financial statement analysis and security valuation.
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