Apple Inc. originated out of California in 1976. Steve Jobs and Steve Wozniak dropped out of college together to begin making technology in their garage. Apple’s technology skyrocketed becoming one of the top technology producing companies. They fell short in the nineties though, companies began to catch up and now there was more competition than before. Apple released their ipod in 2001, putting them back in the leadof the technology industry (The History of Apple). Presently, Apple is still exceeding other companies in the technology industry, such as Microsoft, Blackberry, Google and Hewlett Packard. Microsoft is Apple’s largest competitor, which is revealed through the Dupont analysis and other activity ratios, these particular ratios also make known that Apple’s numbers are not all accurate.
The Dupont analysis includes the asset turnover ratio, the profit margin percantage, return on shareholder’s equity percentage, return on assets, and the equity multiplier (Spiceland, Sepe, and Nelson 258-264). The asset turnover ratio is the amount of revenue received for every one dollar of assets, it reveals how efficiently the company is distributing assets. Apple’s asset turnover ratio is 60.43 which means for every one dollar Apple has in assets, they receive approximately sixty cents (Apple Inc). Microsoft’s asset turnover ratio is 13.17 so for every dollar they only receive about thirteen cents (Microsoft Inc). Apple is doing significantly better in this category. The profit margin is just how much of a company’s sales they keep as a profit. Apple’s profit margin is 21.67% while Microsoft has a 28% profit margin so Microsoft is accumulating more profit off each sale but their sales are lower. The return on shar...
... middle of paper ...
...equity depends on profitability, activity and financial leverage (Spiceland, Sepe, and Nelson 258-264). Apple, along with its competitors, are easily analyzed by investors and owners through the Dupont analysis and other activity ratios while also bringing to light the construed formulas Apple uses.
"Apple Inc." (2014): n.pag. Business Insights: Essentials. Database. 5 Apr 2014.
"Microsoft Corp.." (2014): n.pag. Business Insights: Essentials. Database. 5 Apr 2014.
Spiceland, David, Jim Sepe, and Mark NelsonGlobal Edition. New York: McGraw Hill, 2012. 258-264. Print.
"The History of Apple." nostoptechnology.com. N.p., n.d. Web. 5 Apr 2014.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- ... Keywords: Computers, Technology, Electronics, iPad, iPods, iPhones, Apple Inc. (AAPL) Apple Inc. designs, manufactures and markets, personal computers and portable digital music players and sells a variety of related software, services, As of 2015, Apple, Inc. (NASDAQ: AAPL) has established itself as the premier global consumer electronics company. RATIO Qtr ending Jun 2016 Sept. 2015 Sept. 2014 COMMENT PROFITABILITY RATIOS Return on investment: Return on Equity (ROE) 46.25% Net income/ Shareholders Equity Return on Assets (ROA) 18.38% Net income/Total Assets Return on sales: Gross Profit Margin 40.06% Percentage of revenue to cover operating expenses & expenditures Net... [tags: Financial ratios]
981 words (2.8 pages)
- ... For example, the United States Department of Defense (DoD) is transferring from the use of its current computer operating system to Microsoft’s operating system Windows 10; in order to combat potential security threats and keep national security safe. Windows 10 and all Microsoft’s family of devices have been evaluated and certified by the Defense Information Systems Agency (DISA), while Apple’s operating system and devices have yet to certify. Notably, Apple products communicate well and are compatible with one another, so when creating a technological ecosystem, the Apple products cooperate in perfect harmony.... [tags: Operating system, Microsoft Windows, Apple Inc.]
916 words (2.6 pages)
- Table of Contents Executive Summary 2 Company Background 2 Company Research 3 Value Chain Analysis 3 Customer Profile 4 Competitors 4 External Analysis 5 Internal Analysis 7 Financials 8 Situation Analysis 8 Alternatives 9 Recommendation 11 Implementation 11 Contingency 12 Bibliography 14 Appendix 15 Executive Summary Microsoft has been a leader in the software industry for many years. As the technology industry has changed, so has the type of devices. This change has created a market with a focus on mobile devices and access to data through the cloud.... [tags: Microsoft SWOT Analysis]
3443 words (9.8 pages)
- One of Microsoft few mistakes was when they tried to take on Apple in the Mp3 market with their Zune. Things that went against Microsoft when they introduced the Zune was that the iPod had already been released so it was seen as a copycat product by Microsoft. Other things that went against the Zune was while Microsoft focused on the hardware of the device , the user interface ended up coming out terrible which in turn alienated customers who enjoyed the iPods user friendly interface. (Martin, 2012) Robbie Bach the former leader of the Microsoft home entertainment and mobile business gave an interview into why the Zune failed.... [tags: Apple Inc., Operating system, Macintosh, Microsoft]
890 words (2.5 pages)
- Industry Analysis: Apple Computers 1. Analyzing the computer industry from 1995 to 2005 seemed to be like analyzing a game of chest between the major competitors. The development is noticeable and the shaping of different corporate strategies could be sensed easily thanks to the different approaches toward the movement of the industry that the companies had; some of them shaped it, some followed it and some helped it grow. In order for us to analyze the computer industry during the up said time period, we will consider porter's five forces analysis, though static, it helps improve one's understanding of the setting and the conditions of such.... [tags: Business Analysis Apple]
1917 words (5.5 pages)
- DuPont Analysis DuPont equation provides a broader picture of the return the company is earning on its equity. It tells where a company 's strength lies and where there is a room for improvement DuPont analysis examines the return on equity (ROE) analysing profit margin, total asset turnover, and financial leverage. DuPont analysis decomposing ROE into its components allows analyst to identify adverse impact on ROE and predict the future trends. Return on equity (ROE) measure the rate of return flowing to shareholder.... [tags: Financial ratios, Revenue, Investment]
727 words (2.1 pages)
- Throughout the past 37 years, two companies have ruled the personal computer world. Their feud has been a primary focus for supporters of both companies, despite the many issues that have been going on throughout America since 1975. These companies are Apple Inc. and Microsoft. Both are prosperous, well-known companies, who have dramatically changed the computer industry, and arguably, formed the industry in the first place. Both companies have a vivid history of success and prosperity, and both have made groundbreaking contributions to the computer industry as a whole.... [tags: Windows 7, OS X, operating systems]
1218 words (3.5 pages)
- Microsoft Computers Microsoft is currently the largest company in the computer industry. With a market capitalization of $291 billion, Microsoft has built an empire by dominating software sales for personal computers. Stock growth over the past 25 years has increased by more than 30,000%. However, Microsoft’s growth has substantially decreased since the market collapse of 2001(Niemond 25 April 2007). From June 2004 to June 2005, Microsoft saw a 33% growth in net income. However, from June 2005 to June 2006, growth decreased to 2%.... [tags: Computer Industry Comparison Market Analysis]
1997 words (5.7 pages)
- "Microsoft Corporation, is a multinational computer technology corporation with global annual revenue of US$44.28 billion and 71,553 employees in 102 countries as of July 2006. It develops, manufactures, licenses, and supports a wide range of software products for computing devices. Headquartered in Redmond, Washington, USA, its best selling products are the Microsoft Windows operating system and the Microsoft Office suite of productivity software, each of which has achieved near-ubiquity in the desktop computer market.... [tags: Business Analysis Microsoft]
843 words (2.4 pages)
- Apple Computer Case Analysis History Steve Jobs and Steve Wozniak founded Apple on April 1, 1976 in Santa Clara Valley, California. The two built the Apple I out of a garage and sold it. The first Apple I computer did not include a monitor, keyboard, or casing. Due to the high demand for the Apple I, Jobs realized that there was a market for small computers. He also realized that he could market the company's name and the computer's user-friendly look. In 1977 Wozniak added a keyboard, color monitor, and eight peripheral device slots.... [tags: Apple Computers History Computer Essays]
5511 words (15.7 pages)