Essay on Apple Inc. : Asset Management

Essay on Apple Inc. : Asset Management

Length: 1292 words (3.7 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Inventories have very little influence as to whether Apple Inc. has the ability to be responsible for current liabilities using their current assets. This fact is a representation that Apple does not rely heavily on inventories to account for assets. This means that Apple has other current, or short-term assets like, cash and cash equivalents, short-term marketable securities, and accounts receivable among other assets, that if needed, could cover the company’s current liabilities. Apple maintains levels of inventory that keep up with consumer demand rather than sitting on inventory that could potentially not move (Apple Inc. Form 10-K. 2014.). Apple also maintains quick ratios that exceed median industry levels and are closer to industry highs (Dun & Bradstreet).
Asset Management Ratios (KS)
Asset management ratios, also referred to as asset utilization ratios, are specific ratios used to determine how efficiently companies are using their assets to generate sales revenue. Certain asset management ratios deal with inventory turnover, like the inventory turnover ratio and the days’ sales in inventory turnover (Ross 61).
• Inventory Turnover Ratio
The inventory turnover ratio is calculated by dividing the costs of goods sold by the inventory. This ratio is used to calculate how many times in a period a company is turning over inventory. As long as a company is not running out of stock of inventory thereby missing out on selling opportunities, the higher the inventory turnover ratio is, the more effectively a company is managing their inventory (Ross 61). In 2010, Apple Inc.’s inventory turnover ratio was 37.62 times, in 2011 the ratio was 83.03 times, in 2012 the ratio was 111.06, in 2013 the ra...

... middle of paper ...

... earnings per share (EPS) of $6.38 and diluted EPS of $6.31. In 2013 the company reported basic EPS of $5.72 and diluted EPS of $5.68, and in 2014 the company reported basic EPS of $6.49 and diluted EPS of $6.45 (Apple Inc. Form 10-K. 2014.).
Apple Inc.’s earnings per share have maintained a trend of hovering around the same price. The company’s EPS have exceeded Hewlett-Packards by more than double for the previous three years, but Google has nearly double the EPS share reported by Apple during the same periods (“Revenue and EPS Summary”). In Apple’s most recent quarter they have reported an improvement on EPS of 44.5% compared to the same quarter a year ago. For the past two years the company has maintained a pattern of positive EPS growth and they are predicted to report earnings that jump to $9.13, which could contend with Google’s EPS (Ingram).

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Global Supply Network Risks By Using Apple Inc Essay

- Global supply network management is a complex business function that requires the focus company to manage multiple supply chain partners around the world. It is easy to identify that global supply chains may have more opportunities to meet specific challenges and risks comparing with domestic supply chains, such as culture shocks with suppliers and longer delivery time (Mollenkopf, 2010). Thus, the aim of this report is to analyse some global supply network risks by using Apple Inc. as a case study....   [tags: Supply chain management, Supply chain, Management]

Better Essays
1785 words (5.1 pages)

Apple Inc The Consumer Electronic Industry Essay

- Overview Apple was founded April 1, 1976, by Steve Jobs, Steve Wozniak and Ronald Wayne, who left the company after 12 days, selling his interest for $500 – today his holding would be worth $72B. Apple Inc. incorporated on January 3, 1977. Apple Inc. is dominant in the consumer electronic industry. Apple’s products and services include mobile communication and media devices, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings, peripherals, networking solutions and third-party digital content and applications....   [tags: Financial ratios]

Better Essays
981 words (2.8 pages)

Management Of A Global Business Essay

- Proper management of a global business includes the development and use of human capital and the proper management of these people and their ideas to further the goals of the business. Although funding, inventory, services, distribution, market share, and so on are important aspects of any global business, these can only be enhanced and modified by skills, knowledge and ideas. Due to the rise of instant communication with the internet and with mobile devices, managers now have instant access to individuals and companies almost anywhere in the world, allowing managers to tap this resource to grow and refine the business they work for on a global level....   [tags: Apple Inc., Steve Jobs, Steve Wozniak, Apple I]

Better Essays
718 words (2.1 pages)

Essay on Secrecy at Apple

- Apple Inc. is brand that anyone would recognize around the world. It designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players (Apple, 2011). The company sells its products worldwide through branded retail and online stores, as well as through third-party cellular network carriers, wholesalers, and retailers (Reisinger, 2008). Even with Apples proven success records, one factor that I think Apple should consider as the company develops a long-term strategy for growth is to work on lowering its retail cost so it can offer its high-end products to a broader audience....   [tags: Business Analysis ]

Better Essays
1007 words (2.9 pages)

The Current Ratio For Google Inc Essay

- The current ratio for Google Inc. steadily increased from 4.22 in 2012 to 4.58 in 2013 to 4.80 in 2014. This means that the company has $4.80 for every $1 it owes in liabilities. The cash flow liquidity of Google Inc. was 4.51, 4.86, and 5.16 in 2012, 2013, and 2014 respectively. This shows that the company has enough short term liquid assets to offset its obligations as they come due. The average collection period measures the number of days it takes for Google Inc. to collect its receivables from customers....   [tags: Generally Accepted Accounting Principles]

Better Essays
1043 words (3 pages)

Strategic Management of Apple, Inc Essay

- Introduction and Background Apple, Inc is a well known name in the computer technology world; Apple, Inc leads the computer industry in innovation thanks to the award winning desktop and notebook computer known as OS X operating system (Yoffie & Slind, 2008). This paper will focus on Apple Inc., strategic management and why is it critical to the success of the organization in meeting its goals and mission. It is therefore important to define strategic management, according to Certo, Peter & Ottensmeyer, (2005), strategic management is a continuous process that directs an organization to be appropriately suited to its internal and external environment....   [tags: Apple, Inc Analysis]

Free Essays
1524 words (4.4 pages)

The Organization Of Apple Inc Essay

- Apple Inc is a multinational organization in America and has its headquarters in California. The organization specializes in the design as well as development of consumer electronics including: computer software 's, and also personal computers. The organization has for long been offering a broad range of communication mobile communication as well as its own company software’s. The organization has quite an upright name in the business world. For a long period it has been producing quality product and their designers really bring out uniqueness in their products (Linzmayer, 2004)....   [tags: Operating system, Apple Inc.]

Better Essays
1176 words (3.4 pages)

Apple Brand Audit : Apple Inc. Essay

- Apple brand audit In fact, about this business one can easily write a few weighty books. Without exaggeration, we can say that Apple is one of the brightest technology companies that appeared in the 70s of the last century. Due to innovative technology and aesthetic design, Apple Inc. has established a unique reputation comparable to the cult in the consumer electronics industry. In 2014 the company was ranked first in the world by market capitalization. The concept of the brand is built around the slogan 'Think different’ (Linzmayer, 2004)....   [tags: Apple Inc., IPhone, Steve Jobs, Personal computer]

Better Essays
3224 words (9.2 pages)

Case Study : Apple Inc. Essays

- Apple Inc. is one of the most iconic brands of modern times. Scores of individuals own Apple products and just as many more individuals profess loyalty to the brand founded by Steven Wozniak and Steven Jobs in 1976 (Gamble & Thompson, 2011). Analysis of the study presents areas for opportunities and options for change. The analysis presented will offer insight into the strategy employed by the company in 2009 as well as a SWOT analysis of the company, in general. The analysis will expose details of Apple’s plans and offer possible options to entertain in the company’s future....   [tags: Apple Inc., IPod, IPhone, IPod Nano]

Better Essays
1640 words (4.7 pages)

Essay on The History Of Apple Inc.

- The History of Apple Inc. Apple is a well-known company when it comes to technology. Apple products are extremely desirable despite their outrageous prices. Apple technology is so preferable because these products were created by everyday people who knew exactly what consumers wanted. Apple was founded in 1976 by two college drop outs, Steven Jobs and Steven Wozniak. Both Jobs and Wozniak were often viewed as outcasts. They were friends in high school and were both fascinated with electronics. Wozniak had been attracted to computer-design and created what became the Apple I....   [tags: Apple Inc., IPhone, Steve Jobs, IPhone OS]

Better Essays
1278 words (3.7 pages)