Apple Inc 1. Proceed to undertake a detailed analysis and interpretation of the firm employing the techniques covered in class. This requires ratio analysis, comparison with relevant benchmarks, and...

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See all the attached documents. The project guidelines are in GraduateProjectJune22(1).dock. The other files are materials that need to be used to solve the project. Except from the word file, the excel with all calculations must be submitted as well.


Apple Inc 1. Proceed to undertake a detailed analysis and interpretation of the firm employing the techniques covered in class. This requires ratio analysis, comparison with relevant benchmarks, and identification of areas of strength, weakness or other notable attributes. Ratio Analysis: Calculate the following ratios: Liquidity (current and quick ratio), Asset Management (inventory turnover, day sales outstanding, fixed assets turnover, total assets turnover), Debt Management (total debt to total assets, times interest earned), Profitability (Operating Margin, profit margin, return on total assets (ROA), Basic earning power (BEP), Return on common equity (ROE)), Market Value (Price/Earnings (P/E), Market/Book (M/B)). See the attached pdf (ratio) with the required formulas to use (use these formulas). Comparison with relevant benchmarks: Compare Apple with Samsung and Hawaii. All financial statements are available online (yahoo finance, websites, etc). Explain the comparison. How the company performance is against its competitors. Explain, compare and discuss every ratio. Also perform trend analysis with explanations and diagrams. Identification of areas of strength, weakness or other notable attributes: Identify areas of strength, weakness or other notable attributes of Apple (2019), financially and not financially related and compare them with industry and especially with Samsung and Hawaii. 2. Calculate the EVA for the most recent available year (2019). Use the supplementary sheet (pdf attached) with the EVA calculation steps, and EVA worksheet as you choose. See separate sheet (attached pdf) and worksheet for the EVA analysis. 3. Compare and contrast, and comment upon how the EVA relates to the reported Financial Accounting income calculated in accordance with GAAP. 4. Undertake a valuation of the company’s traded stock using the methods covered in class – simple multiples, and the more analytical PV and FCF valuation techniques covered. Here, use sensitivity and simulation methods for valuation (see earnturn pdf attached) and also draw the diagram from the pdf for Apple and explain. Also perform PV and FCF Valuation methods for Apple. Explain what we can identify from the valuation. 5. Realizing the context of the EMH, compare your (“intrinsic”) valuation of the stock with the market price available. 6. Evaluate the stock as a potential position in a portfolio. It is worth for investment or having in your portfolio? 7. Evaluate dimension of the firm other than purely financial using frameworks and perspectives such as the Balanced Scorecard and more. (Use Balanced Scorecard and another one of your choice). 8. The completed project should not exceed 10 pages of text, plus up to 5 pages of supporting worksheets/ spreadsheets, etc. Instructions: a) Referencing: Use in text referencing with APA as well as APA Reference list after the project. b) Upload also the excel with all the calculations. Each part of the calculations must be in different tab. For instance, Ratio Analysis, EVA, and so on. c) Also inside the word document (project) except from referencing everything that you used from a source (numbers, statements, and so on) reference the appendixes or your excel.
Answered Same DayJun 27, 2021

Answer To: Apple Inc 1. Proceed to undertake a detailed analysis and interpretation of the firm employing the...

Shakeel answered on Jul 17 2021
142 Votes
Apple
        Income Statement            Balance Sheet
        All figures are in thousands USD    2019        All figures are in thousands USD    2019
        Total Revenue    260,174,000        Total Assets    338,516,000
        Operating Revenue    260,174,000        Current Assets    162,819,000
        Cost of Revenue    161,782,000        Cash, Cash Equivalents & Short Term Investments    100,557,000
        Gross Prof
it    98,392,000        Cash And Cash Equivalents    48,844,000
        Operating Expense    34,462,000        Cash    12,204,000
        Selling General and Administrative    18,245,000        Cash Equivalents    36,640,000
        Research & Development    16,217,000        Other Short Term Investments    51,713,000
        Operating Income    63,930,000        Receivables    45,804,000
        Net Non Operating Interest Income Expense    1,385,000        Accounts receivable    22,926,000
        Interest Income Non Operating    4,961,000        Gross Accounts Receivable    -
        Interest Expense Non Operating    3,576,000        Allowance For Doubtful Accounts Receivable    -
        Other Income Expense    422,000        Other Receivables    22,878,000
        Other Non Operating Income Expenses    422,000        Inventory    4,106,000
        Pretax Income    65,737,000        Other Current Assets    12,352,000
        Tax Provision    10,481,000        Total non-current assets    175,697,000
        Net Income Common Stockholders    55,256,000        Net PPE    37,378,000
        Net Income    55,256,000        Gross PPE    95,957,000
        Net Income Including Non-Controlling Interests    55,256,000        Properties    0
        Net Income Continuous Operations    55,256,000        Land And Improvements    17,085,000
        Diluted NI Available to Com Stockholders    55,256,000        Machinery Furniture Equipment    69,797,000
        Basic EPS    12.66        Leases    9,075,000
                    Accumulated Depreciation    -58,579,000
                    Goodwill And Other Intangible Assets    -
                    Goodwill    -
                    Other Intangible Assets    -
                    Investments And Advances    105,341,000
                    Investment in Financial Assets    105,341,000
                    Available for Sale Securities    105,341,000
                    Other Non Current Assets    32,978,000
                    Total Liabilities Net Minority Interest    248,028,000
                    Current Liabilities    105,718,000
                    Payables And Accrued Expenses    46,236,000
                    Payables    46,236,000
                    Accounts Payable    46,236,000
                    Current Accrued Expenses    -
                    Current Debt And Capital Lease Obligation    16,240,000
                    Current Debt    16,240,000
                    Commercial Paper    5,980,000
                    Other Current Borrowings    10,260,000
                    Current Deferred Liabilities    5,522,000
                    Current Deferred Revenue    5,522,000
                    Other Current Liabilities    37,720,000
                    Total Non Current Liabilities Net Minority Interest    142,310,000
                    Long Term Debt And Capital Lease Obligation    91,807,000
                    Long Term Debt    91,807,000
                    Non Current Deferred Liabilities    -
                    Non Current Deferred Taxes Liabilities    -
                    Non Current Deferred Revenue    -
                    Tradeand Other Payables Non Current    29,545,000
                    Other Non Current Liabilities    20,958,000
                    Total Equity Gross Minority Interest    90,488,000
                    Stockholders' Equity    90,488,000
                    Ordinary Shares Number    4,443,236
                    Market price of share    $293.65
                    Book value of share    $20.37
Samsung
        Income Statement            Balance Sheet
        All figures are in thousands KRW    2019        All figures are in thousands KRW    2019
        Total Revenue    230,400,881,000        Assets    352,564,497,000
        Operating Revenue    230,400,881,000        Current Assets    181,385,260,000
        Cost of Revenue    147,239,549,000        Cash    108,779,703,000
        Gross Profit    83,161,332,000        Cash And Cash Equivalents    26,885,999,000
        Operating Expense    55,392,823,000        Other Short Term...
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