APPLE INC.

Company Analysis

Table of Contents

Apple Revenues Chart Apple Horizontal Analysis

Apple Vertical Analysis Apple Performance Ratios

Invesment conclusion

Apples Earnings 2011 through 2013

September 28 2013September 29 2012September 24 2011 $-

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

$140,000.00

$160,000.00

$180,000.00

Sales Revenue Apple Inc.

Apple Earnings 2011 through 2013

Revenues are increasing constantly albeit at a slower rate from 2012 to 2013.

A further inspection of the companies financial statements reveals much more detail.

Apple Inc. Performance Ratios

Performance Ratios September 28 2013 September 29 2012

working capital   $ 29,628 $ 19,111 current 1.68 1.50acid test     $ 1.64 $ 1.48 inventory turnover 133.785 122.511average inventory   $ 1,277.50 $ 1,277.50 account rec. Turnover 0.070 0.077average account rec. $ 12,016.00 $ 12,016.00 days of sales outstanding 27.98098414 25.49039027days in inventory   0.012 0.015avg inventory $ 1,277.50 $ 1,277.50 fixed asset turnover 1.278 1.322total asset turnover 0.8257 0.8889debt ratio   0.4031 0.3286times interest earnedequity multiplier   1.675448607 1.489417139gross profit margin 38% 44%operating profit margin 29% 35%net profit margin 2% 27%ROE     30% 35%ROAaverage total assets $ 191,532.00 $ 191,532.00

Performance ratios are comparisons of different values within the company that give a bigger picture of the liquidity, solvency, growth, and efficiency of a company regardless of its size. They will be referred to and explained in greater detail later in the presentation to provide further evidence of conclusions drawn from the vertical and horizontal analysis.

Apple Vertical Analysis of Balance Sheet

vertical analysis % of total assets                   

September 28 2013 September 29 2012 cash and cash equivalents     6.9%   significant 6.1%   short term marketable securitites 12.7% significant 10.4%

accounts receivable, less allowances of $99 amd 98$ respt. 6.3%   - 6.2%   inventories 0.9% significant 0.4% deferred tax assets     1.7%   significant 1.5%   vendor non-trade receivables 3.6% - 4.4% other current assets     3.3%   - 3.7%   total current assets 35.4% - 32.7%long term marketable securities     51.3%   - 52.3%  property, plant and equipment, net 8.0% - 8.8%goodwill         0.8%   significant 0.6%  acquired intangible assets, net 2.0% - 2.4%other assets       2.5%   - 3.1%   total assets 100.0% - 100.0%

Apple Vertical Analysis

Significant changes in capital structure of Apple Inc.:Values represent percentage of total sales

/13 /12 /11

COGS       62%   56% 60% Operating Income   29% 35%  31% Net income     2% 27% 24%

Apple was most efficient in collecting income in 2012. It had a low cost of goods as well as a high income after operational costs were factored in. The company also managed to collect the most profit relative to its net sales.

Apple Horizontal Analysis

                  2012-2013    %increase 2011-2012Net Sales 9% 45%COGS                 21%     36%

Gross Margin -6% 57%Operating Expenses                    

Research and Developement 32% 39%Selling, general and administrative           941%     -86%

Total operating expenses 14% 34%Operating Income             -11%     63%Other Income/(expense), net 121% 26%Income before provision for income taxes         -10%     63%Provision for income taxes -7% 69%Net income               -11%     61%

Earnings per share                    Basic -10% 59%Diluted               -10%     60%Shares used in computing earnings per shareBasic               -1%     1%diluted -1% 1%Cash dividends declared per common share         330%      

See full statement analysis

Apple Horizontal Analysis continued

The most notable changes in absolute terms in Apple’s income statement are:

Relatively consistent increase in production costs A significantly smaller increase in sales compared to

production costs signaling that the company is taking on more cost while gaining less revenue

See Performance ratios

Conclusion

The company is healthy and is well suited for safe investment

See full invesment report