decoding apple s balance sheet apa format essay
Decoding Apple’s Balance Sheet In March of 2009, Apple had their best March quarter income and income in Apple history (Apple). In order to see how this happened, it is important to look over the financial statements of Apple. There is a lots of information accessible to investors whom are interested in purchasing a company. By looking specifically at the balance sheet of Apple Let me determine if purchasing Apple is a great idea or a poor idea.
Some things I am going to consider are Apple’s assets, financial obligations, and shareholder’s equity. These kinds of areas should certainly give me perception to the way the best one fourth in Apple history came to be.
Looking at the current assets of Apple, cash and funds equivalents took place from 10. 8 billion dollars to 4. some billion us dollars. This may appear bad in the beginning, but all the other resources must be added for this in order to get an overall picture of the assets.
Short-term marketable securities proceeded to go up from 10. two billion dollars to 20. your five billion us dollars. This helped Apple’s resources grow greatly. Accounts receivable fell to at least one. 9 billion dollars dollars via 2 . some billion us dollars. With the remaining current assets figured in, inventories, deferred tax property, and other current assets, the whole current property rose to 33. billion dollars dollars by 32. a few billion us dollars. That was obviously a rise of just one. 5 billion dollars dollars (Apple). It is important to take into account the rest of the assets. For example , long lasting marketable securities rose 1 . 5 billion dollars dollars, home, plant and equipment increased 0. 91 billion dollars, goodwill stayed the same, obtained intangible assets fell 0. 017 billion dollars, and other assets flower 0. 56 billion us dollars. Now that we know just how each asset was afflicted during this one fourth, we come to the last numbers, that happen to be total resources rose 3. 6 billion dollars dollars. Apple grew its assets significantly during this quarter.
I would believe Apple will be a good firm to invest in. Prior to I made any decisions I would investigate the balance sheet further to be able to compare liabilities and shareholder’s equity while using previous 1 / 4. This will produce a better knowledge of the financial situation of the business (Apple). Current liabilities will be in the initially section of debts and shareholder’s equity. The following accounts happen to be current financial obligations and how they will fared. Accounts payable happened from 5. 5 billion dollars to three. 9 billion dollars dollars. Accumulated expenses happened 1 billion dollars.
Deferred revenue travelled up coming from 4. almost 8 billion us dollars to 7 billion dollars. The total enhancements made on current financial obligations was a decrease of 0. 5 billion dollars. The additional two debts categories, deferred revenue ( noncurrent ) and other noncurrent liabilities, rose collectively zero. 7 billion dollars. This gives the total liabilities a rise of 0. several billion dollars. This quantity compared to current assets is definitely not as significant. So far Apple is still resembling a good investment as the assets of Apple flower 1 . your five billion dollars whereas their particular liabilities only rose zero. 4 billion dollars.
It is now time to have a look at the final group of the balance bed sheet, the shareholder’s equity (Apple). The value of investors equity, common stock, increased from several. 1 billion dollars dollars to 7. 6th billion us dollars. Retained earnings also went up; it flower from 13. 8 billion dollars dollars to 16. 6th billion dollars. Accumulated various other comprehensive profits rose. 07 billion us dollars. Total shareholder’s equity increased 3. several billion dollars. So adding together the rise of 0. 4 billion dollars in liabilities with the several. 3 billion dollars dollar go up of the shareholder’s equity, we get the same amount, 3. 7 billion dollars dollars, even as got for the within total property.
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