Based on the reports listed above it is clear that Apple out performs their competitors. Over all Apple is a solid company which should continue to see year over year growth. Between 2014 and 2015 Apple has had a 3% growth in their Operating margin profit. Their Return on Equity has gone from 30% to 45% because they are using their investments to grow their earnings. While the ROE is related to debts, it is important to understand that Apple has primarily short term debts which the company pay off quickly, which is why I am making the recommendation to invest in Apple’s bonds. If an investor already owns stock in Apple, it would be a wise choice to hold on to it.
Apple’s growth in their net profit area is due to them producing cutting edge products. Apple has combined their new higher priced items with their lower priced products to increase their net operating profit. Apple has great management in place to ensure their employees are not being wasteful, which is helping to ensure they remain profitable. Each year Apple releases a more advanced IPhone, which is costlier than the previous year, which is causing their revenue to continue to grow. They have implemented a device trade in program, which gives a credit for older model devices when customers upgrade. This allows them to resale products and get higher profit. The launch of the Apple Watch and the increase in the Mac sales has caused Apple’s profit to steadily grow which makes the company a wise investment.
In reviewing the financial, stock, and bond analysis, it is clear that Apple is a profitable company. By examining this data, it appears that the Apple brand is well rooted in US communities and abroad. By examining their finances, i...
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...cks, and bonds they have avoided paying large amounts of taxes on their overseas cash supply. This decision has allowed Apple to pay higher returns to their stockholders. Apple currently has over 200 billion dollars of cash on hand. The majority of those assets are held outside of the country. Apple is a unique company because they choose to take on debt unlike many other companies. They currently have over 4 times more cash on hand than the US treasury and the only competitor with nearly as much cash is Microsoft which currently has 84 billion in cash assets. Based on the analysis done Apple has adequate finances to continue to grow in the future. They have maintained an average of 29% over the last 5 years making them a wise investment.
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