The Profitability Analysis Of Apple Inc.

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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. Apple delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store. …show more content…

(EBIT/(EBIT-INT) The company reported previous year revenue of 220.29 B. Net Income was 47.8 B with profit before overhead, payroll, taxes, and interest of 93.63 B.
Quarter ended June 2016, Net Income:$31,184M, Shareholders Equity:$128,499M with the ROE: …show more content…

ROA – Apple’s management is efficient at using its assets to generate earnings. Asset contribution toward making a profit is % (2016), %(2015)
Apple 's gross margin, of x (Qtr ending 6/2016) and 40.06% (2015), is higher than industry standards, allowing Apple to manage its operating expenses and attain yearly high earnings growth consistently.

Financial Ratio Trend Analysis
Trend analysis of Apple Inc balance sheet accounts such as Current Assets of 93.8 B, Assets Non Current of 201.1 B or Cash and Equivalents of 62.6 B provides information on Apple total assets, its liabilities, and its equity which is the actual value of Apple Inc to its prevalent stockholders.

DuPont Analysis
The factors driving Apple’s ROE is based on the Net Margin of 22.9% (Sept 2009), which was an improvement of 130 basis points, (bps) over the two previous years. Apple’s net margin is significantly higher than that of its competitors, Samsung, an industry leader in consumer electronics, highest net margin was only 8.9%. Apple’s competitor advantage in net profit margins is the major contributor to its industry best ROE.

Capital

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