Common Size Analysis Of Apple

Apple does not create an annual report to its shareholders, as more traditional companies do. Consequently, we are analyzing information from Apple’s 10k, which is Apple’s Annual Report to the SEC.

The Financial Highlights section of Apple’s Annual Report exhibits a general view of the company’s performance over the past year. In this section, Apple provides a price range of common stock, which represents the high and low sale prices for their stock in the market (NASDAQ). Apple also states how many stockholders have stake in the company and if any cash dividends were paid out to stockholders. Within this section of the annual report there is also a company stock performance graph. This shows a comparison between the different markets of cumulative

Common Size Analysis - Balance Sheet (in millions, except number of shares which are reflected in thousands)

ASSETS:

September 28th, Percent 2013 2013 Percent 2014 $14,259 5.971385315 6.888405797 26,287 4.845172728 12.69903382 13,102 7.531088385 6.329468599 1,764 0.91054568 0.852173913 3,453 1.862499407 1.668115942 7,539 4.209386686 3.642028986 6,882 4.229659376 3.324637681 73,286 29.55973758 35.40386473 106,215 56.14327184 51.3115942 16,597 8.895828571 8.017874396 1,577 1.991036883 0.761835749 4,179 1.786584656 2.01884058 5,146 1.623540474 2.485990338 $207,000 100 100

Current assets: Cash and cash equivalents Short-term marketable securities Accounts receivable, less allowances of $86 and $99, respectively Inventories Deferred tax assets Vendor non-trade receivables Other current assets Total current assets Long-term marketable securities Property, plant and equipment, net Goodwill Acquired intangible assets, net Other assets Total assets

September 27th, 2014 $13,844 11,233 17,460 2,111 4,318 9,759 9,806 68,531 130,162 20,624 4,616 4,142 3,764 $231,839

LIABILITIES AND SHAREHOLDERS ' EQUITY:

$22,367 13.02455583 10.80531401 13,856 7.959402861 6.693719807 7,435 3.662455411 3.59178744 - 2.720853696 0 43,658 27.3672678 21.09082126 2,625 1.307372789

Thus we believe overall Apple Inc. is a stable, positive and profitable business.

Apple’s notes to consolidated financial statements provide details about the company that help investors gain more knowledge about the business and its operations. There are twelve notes that highlight important information about Apple, which are divided into different subsets to help readers understand more clearly what is going on in the business. Included in the notes is a summary of significant accounting policies, where the basic operations and financial reporting techniques are explained in accordance with the generally accepted accounting principles. Another portion of the notes section, consolidated financial statement details, outlines

Apple’s balance sheet to give a more thorough explanation of the monetary value of the company’s assets and liabilities, like inventories, property, plant and equipment, accrued expenses, non-current liabilities, and other income and expenses. Other notes include discussions of debt, dividends, stock plans and options, operating leases, and more. With these notes, investors looking to