A Financial Manager oversees the monetary concerns of any organization. They also offer financial counsel to support customers, and associates to empower them to make sound business judgments. Prior to any decision made by the most organization, monitoring, interpreting cash flows and forecasting future trends are essential for both short and long-term decision.
Financial Managers recommend investors ways to invest money, and showing them why their company is potentially profitable. Some of the reasons why investors invest in an organization are investment profit, a source of income, diversification, control, and support. Investors choose to invest in an organization to make revenue after the values of their stock grow. Source of income occurs when the dividends are allotted to owners for each share they hold while diversity happen when putting money in different investments to spread out the risk and increase chances of earning profits. Control and support occur because it gives the investor some control in the organization and support in its operations. Investors can vote at annual meetings, which make crucial leadership decisions.
Provide a rationale for the U.S. publicly traded company that you selected, indicating the significant factors driving your decision as a financial manager
Apple Corporation is one of the most valuable publicly traded firms in the world. It has risen in value to maintain its high position in the corporate world. Apple was worth about $375 billion, with shares up about 25 percent to $403 (Farzad, 2011). Apple is known for their innovative thinking in terms of marketing. Part of their approach is to have their products appeal to consumers, gathering business customers and enter...
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...ne to the decline in average selling price (ASP). The phone cost about $649 while other phones like Android’s phones ASP has dropped since launch and sell about $247 while Window phones are ranging from $265. Apple’s phone are expected to continue to command ASPs more than $600 by 2018 (Apple Inc., 2014).
As per April 2015, Apple Inc. gross margin was 40.8 percent compared to 39.3 percent in the year-ago quarter (Apple Press Info, 2015). The quarterly revenue of $58 billion and net profit of 13.6 billion. Last quarter revenue was 45.6 billion and net profit was 10.2 billion. The March 2015 quarter drove revenue growth of 27 percent and EPS growth of 40 percent. Apple still trades with the price to earning ratio (P/E) ratio of 17 which is significantly cheaper than its competitors. This ratio shows how Apple is financially healthy and good company to invest.
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