The company is Apple Inc. Week's 3 & 4 will be attached. Combined should be 6 pages so realistically I need 2-3 pages added covering each requirement. Corporate Performance Report In the business...

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The company is Apple Inc. Week's 3 & 4 will be attached. Combined should be 6 pages so realistically I need 2-3 pages added covering each requirement.

Corporate Performance Report


In the business world, it is imperative that each person be able to determine and make recommendations regarding the viability of any purchase, as well as justify the claims made to upper management. Whether the purchase is equipment, stock, or another company, the same techniques and skills are called into play.


The Corporate Performance Report will require you to apply pertinent business concepts to the analysis of a chosen company using data from the company’s annual report as well as other sources. Using different business concepts and real-world techniques, you will analyze the strengths and weaknesses of the company and write a report for upper management either recommending or not recommending purchase of the company stock. Just as you would in any business situation, you will be required to revise and improve the pieces of your report as you progress and your final product will be something that could be used in the real business world.






The completed report must include the following sections and content.



Executive Summary (Completed in Week Five)**



  • Create an Executive Summary for your report that can be used as the first page of the final product to provide general information for upper management

    • Provide a synopsis of your findings, including your recommendations and a rationale for whether or not to purchase stock from this company.





Introduction to and Background on the Company (Completed in Week One)**



  • Analyze your chosen company’s current business and financial conditions and create a brief introduction to your company that includes the following.

    • The mission of the company

    • A descriptions of the company’s current business operation, competitors, financial condition

    • General information that explains why the company interesting to you as an analyst.





Financial Statement Review (Completed in Week Two)**



  • Evaluate the financial performance of your company by creating a complete financial statement review.

    • Review all three accounting statements and compare each of these statements to previous statements for the past three years.

    • Describe any positive or negative trends that emerge from the accounting statement data and comparisons, providing a detailed explanation of the factors that lead to these trends.

    • Assess potential weaknesses in the financial statements for your company.





Market Summary and Value Calculation (Completed in Week Four)**



  • Summarize how your company compares to the overall market based on researched competitive market data.

  • Summarize what 3-5 market analysts are currently saying about the company.

  • Calculate the value of the company’s financial assets by completing ratio analyses for the company for the last three fiscal years within the following bulleted categories. Provide a rationale as to whether each ratio is favorable or signals potential trouble for the company justifying your observations with evidence from the data and your findings.


(Note: Your report must include a minimum of 2 ratios from each bulleted category, with a minimum of 10 total analyses. The greater the number of relevant ratio analyses you can provide, the stronger your business case will be to either purchase or not purchase the stock.)



  • Categories for ratio analysis

    • Liquidity

    • Financial leverage

    • Asset management

    • Profitability

    • Market value





Financial Returns and Capital Constraints (Completed in Week Three)**



  • Formulate the expected financial returns and associated risks by completing the following calculations.

    • Calculate the Return on Equity (ROE) using the DuPont system.

    • Calculate the Constant Growth Stock Valuation (CGSV) and compare it to the current stock price.



  • Research your company’s industry and evaluate what type(s) of capital constraints your company must consider in order to be competitive in the market. Explain the appropriate financial techniques that would be used in this evaluation.




** Be sure to include any additional revisions based on the feedback you received from your instructor in the weekly mentorship exchanges and Waypoint submitted assignments.



The Corporate Performance Report



  • Must be eight to ten double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in theAshford Writing Center(Links to an external site.).

  • Must include a separate title page with the following:

    • Title of paper

    • Student’s name

    • Course name and number

    • Instructor’s name

    • Date submitted



  • Must use at least five scholarly and/or industry sources. These may include: the textbook, industry reports, and articles from the Ashford library.

  • Must document all sources in APA style as outlined in the Ashford Writing Center.

  • Must include a separate references page that is formatted according to APA style as outlined in the Ashford Writing Center.

Answered Same DaySep 15, 2021

Answer To: The company is Apple Inc. Week's 3 & 4 will be attached. Combined should be 6 pages so realistically...

Neenisha answered on Sep 17 2021
154 Votes
Apple Inc.: Market Summary and Value Calculation        2
Apple Inc.: Market Summary and Value Calculation (DRAFT)
Nyla Smalls
BUS 401: Principles of Finance
Prof. Robert Watson
Ashford University
September 4, 2020
Executive Summary
Apple is currently having the largest company in the world whose market cap has touched trillion dollars. It is the US based company which manufacturers laptops, mobile phones, air pods, computer software etc. We h
ave tried to analyse the financial statements of the company to understand the strengths and weaknesses of the company. The company possess strong financial statements and has high cash balance. Company has been making profit on year on year basis and thus the revenue and profit have increased over the years. There is a positive trend in the company’s revenue and profit structure. Company is also having positive operating cash flow which is a good indicator. Then we have analyzed the return on equity and constant stock growth valuation to understand whether we should buy the stock or not. The company has high Return on Equity at 61% which is more than industry average. According to Constant growth stock valuation the price of the company is $ 62.50 which is more than the current stock price of the company, hence the stock is overpriced and it is a sell signal. We have computed several ratios to analyse the liquidity, leverage, profitability and asset utilization of the company. The company has good liquidity as the current ratio and the quick ratio is high at 1.5 approximately. He financial leverage is increasing every year, in 2019 financial leverage is 3.60 which means that the shareholder’s equity is decreasing. The return on assets is also very high at 16% which is a good indicator and means that the company is utilizing the assets efficiently. Also, the profitability of the company is also high in 2019 at 21% which means that company is earning profits and doing good in terms of profit. Company is doing good in terms of financial statements but according to the analysis the stock is overpriced which means that it is a sell signal.
Background
Apple Inc. is an American manufacturer of personal computers, computer peripherals and computer software. Apple was first such company which became successful in the arena of business of personal computer. It popularized on the graphical user interface. The company is headquartered in Cupertino, California. Apple was founded by Steve Wozniak, Steve Jobs, and Ronald Wayne in April 1976. Apple is the world’s biggest technology company by revenue. Apple is the first US company to be publicly traded and have a value of over $1 trillion in 2018. In August 2020 it became the first US-based company to be valued $2 trillion. There are 510 retail stores of the company in 25 countries across the globe and about 137,000 employees work with it (Finkle & Mallin, 2010, p.35).
Financial Statement Review
Income Statement Analysis
The Sales of the company has increased in 2018 by 15.86% from 2017 which is a very good growth rate, however in 2019 the sales have decreased by 2% as compared to that in 2018 but since 2017 the sales have increased. Due to increase in sales, the gross profit also rose to $101,839,000 inn 2018 which was 15% growth as compared to 2017, and in 2019 it decreased by 3.38% due to decrease in revenue. Due to increase in revenue the total operating expenses have also increased in 2018 and 2019. The net income of the company has increase by 23% in 2018 compared to 2017, but it has decreased by 7% in 2019 as compared to 2018 due to decrease in revenue. Company is having high Research and Development Cost due to continuous investment in R&D of new products and technology.
Balance Sheet Analysis
Company has a huge increase in the amount of current assets in 2019 as compared to 2018, but non - current assets have decreased. The current assets increased by 24% in 2019 as compared to increment of only 2% in 2018. The major reason in increase of current assets is increase in cash and marketable securities of the company. The cash and marketable securities have increased by 88% and 28% respectively in 2019 as compared to that in 2019. The total non-current assets have decreased in 2019 and 2018 by 7% and 3% respectively. Under non – current assets marketable securities have decreased in 2019 by significant portion. The total assets have decreased in 2019 as compared to 2017. The total debt and equity have also decreased in 2019 as...
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