PS 504 CREDIT MANAGEMENTPROJECT

APPLE Inc.

PREPARED BY :MOHAMAD KHERULDIN BIN TOHA 17DIB11F1040NUR FAIZATUL AMANINA BINTI SHAARI17DIB11F1014NUR SHAMIMI BINTI MOHD SAMAN17DIB11F1017NURUL AMELLIA BINTI ARZEMI17DIB11F1024FARHAH LIYANA BINTI MOHD RADI17DIB11F1059

APPLE COMPANY’S PROFILE

APPLE Inc.

1. Is multinational corporation that creates

consumer electronics, computer software, and

commercial server

2. Apple Computer first came to be a company in 1976 by Steve Jobs and

Steve Wozniak

3. The best – known hardware product are

Macintosh line of computers, the iPod, the

iPhone and iPad

4. Now, Apple is a brand that most people

automatically know all over the world

FINANCIAL REPORT OF APPLE Inc.

Annual Financials for Apple Inc.docx

QUANTITATIVE ANALYSIS OF APPLE Inc.

2010 2011 2012

LIQUIDITY RATIO

CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES

QUICK / ACID TEST RATIO = ( CURRENT ASSET – STOCKS – PREPAID EXPENSES ) / CURRENT LIABILITIES

2010 2011 2012

ACTIVITY / EFFICIENCY RATIO

TOTAL ASSETS TURNOVER = SALES / TOTAL ASSETS

FIXED ASSETS TURNOVER = SALES / NET FIXED ASSETS

2010 2011 2012

2010 2011 2012

INVENTORY TURNOVER = COST OF GOOD SOLD / INVENTORY

AVERAGE COLLECTION PERIOD = ACCOUNT RECEIVABLE SALES / 360

2010 2011 2012

2010 2011 2012

LEVERAGE RATIO

GEARING / DEBT TO EQUITY RATIO = ( DEBT / EQUITY ) X 100

DEBT RATIO = ( TOTAL LIABILITIES / TOTAL ASSETS ) X 100

TIMES INTEREST COVERED = EBIT / INTEREST

2010 2011 2012

2010 2011 2012

2010 2011 2012

PROFITABILITY RATIO

RETURN ON EQUITY = ( PROFIT AFTER TAX / STOCKHOLDER’S EQUITY ) X 100

RETURN ON ASSETS = ( PROFIT AFTER TAX / TOTAL ASSETS ) X 100

2010 2011 2012

2010 2011 2012

NET PROFIT MARGIN = ( PROFIT AFTER TAX / SALES ) X 100

GROSS PROFIT MARGIN = ( GROSS PROFIT / SALES ) X 100

OPERATING PROFIT MARGIN = EBIT / SALES

2010 2011 2012

2010 2011 2012

2010 2011 2012

QUALITATIVE ANALYSIS OF APPLE Inc.

PERSONAL COMPUTERS

• Dell and Hewlett-Packard are the primary competitors in the personal computer market

• Apple creates its market share is by creating product differentiation from these other computer manufacturers

COMPUTER SOFTWARE

• Lacks the relative size and market share

• Apple software is limited to its own personal computers

MOBILE COMMUNI-

CATION ( IPHONE)

EXAMPLE OF APPLE Inc ‘s FAILURE IN PRODUCT

RISK ANALYSIS

1. POLITICAL ANALYSIS

2. ECONOMI-CALANALYSIS

3. SOCIAL ANALYSIS

4. TECHNOLOG- ICAL ANALYSIS

5. LEGAL ANALYSIS

POLITICAL ANALYSIS

Apple Inc. produce many of its parts and products outside the

U.S

Political conflicts between the U.S and any of these states

may have awful outcome for Apple Inc.

Bad international relations, wars and terrorism might influence Apple in a huge

manner

ECONOMICAL ANALYSIS

EconomicalAnalysis

1. The global economic depression might have

immense impact on Apple.

2. The U.S Dollar has lost value.

3. Very little market share compared to

Microsoft.

4. Facing the risk of cannibalization and might deeply suffer

5. Its products expensiveness

threatens Apple being undercut by low cost

import

1. Media privacy : iPod users illegally download music

2. Low presence in advertising other than products

placement in publishing and educational area

SOCIAL ANALYSIS

TECHNOLOGICAL ANALYSIS

1. R & D investment2. Packaging3. Change of customer preferences

1. New products

RISK

OPPORTUNITY

LEGAL ANALYSIS

1. Reduced output and productivity.2. Competitors. 1. Increased

protection of product.

RISK

OPPORTUNITY