“Financial Statement Analysis of Apple Inc.”

Company Background Apple Inc. and its wholly-owned subsidiaries (collectively “Apple” or the “Company”) designs, articles and markets adaptable admonition and media devices, claimed computers, and carriageable agenda music players, and sells a array of accompanying software, services, peripherals, networking solutions, and third-party agenda agreeable and applications. The Company’s articles and casework board iPhone ® , iPad ® , Mac ® , iPod ® , Apple TV ® , a portfolio of chump and able software applications, the iOS and Mac OS ® X operating systems, iCloud ® , and a array of accessory, annual and abutment offerings. The Aggregation additionally sells and delivers agenda agreeable and applications through the iTunes Store ® , App Store SM , iBookstore SM , and Mac App Store. The Aggregation sells its articles accepted through its retail stores, online stores, and absolute sales force, as able-bodied as through third-party cellular arrangement carriers, wholesalers, retailers, and value-added resellers. In addition, the Aggregation sells a array of third-party iPhone, iPad, Mac and iPod accordant products, including appliance software, printers, accumulator devices, speakers, headphones, and assorted alternative accessories and peripherals, through its online and retail stores. The Aggregation sells to consumers, baby and mid-sized businesses (“SMB”), and education, action and government customers. The Company’s budgetary year is the 52 or 53-week aeon that ends on the aftermost Saturday of September. Unless contrarily stated, all admonition presented in this Form 10-K is based on the Company’s budgetary calendar. The Aggregation is a California association accustomed in 1977. Business Action The Aggregation is committed to bringing the best user acquaintance to its barter through its avant-garde hardware, software, peripherals, and services. The Company’s business action leverages its different adeptness to architecture and advance its own operating systems, hardware, appliance software, and casework to board its barter new articles and solutions with above ease-of-use, seamless integration, and avant-garde design. The Aggregation believes around-the-clock advance in analysis and development and business and announcement is analytical to the development and auction of avant-garde articles and technologies. As allotment of its strategy, the Aggregation continues to aggrandize its belvedere for the analysis and commitment of hird-party agenda agreeable and applications through the iTunes Store. As allotment of the iTunes Store, the Company’s App Abundance and iBookstore acquiesce barter to ascertain and download applications and books through either a Mac or Windows-based computer or through “iOS devices,” namely iPhone, iPad and iPod touch ® . In January 2011, the Aggregation opened the Mac App Abundance to acquiesce barter to calmly discover, download and install applications for their Macs. The Aggregation additionally supports a association for the development of third-party software and accouterments articles and agenda agreeable that accompaniment the Company’s offerings. The Company’s action additionally includes accretion its administering arrangement to finer adeptness added barter and board them with a high-quality sales and post-sales abutment experience. Chump and Baby and Mid-Sized Business The Aggregation believes a high-quality affairs acquaintance with abreast salespersons who can back the bulk of the Company’s articles and casework abundantly enhances its adeptness to allure and absorb customers. The Aggregation sells abounding of its articles and resells third-party articles in best of its above markets anon to consumers and businesses through its retail and online stores. The Aggregation has additionally invested in programs to enhance reseller sales by agreement aerial affection Apple fixtures, affairs abstracts and alternative assets aural called third-party reseller locations. Through the Apple Premium Reseller Program, assertive third-party resellers focus on the Apple belvedere by accouterment a aerial akin of artefact expertise, affiliation and abutment services. The Company’s retail food are about amid at high-traffic locations in affection arcade malls and burghal arcade districts. By operating its own food and analysis them in adorable high-traffic locations, the Aggregation is bigger positioned to ensure a aerial affection chump affairs acquaintance and allure new customers. The food are advised to abridge and enhance the presentation and business of the Company’s articles and accompanying solutions. To that end, retail abundance configurations accept acquired into assorted sizes to board market-specific demands. The Aggregation believes accouterment absolute acquaintance with its barter is an able way to authenticate the advantages of its articles over those of its competitors. The food apply accomplished and abreast cadre who board artefact advice, annual and training. The food action a advanced alternative of third-party hardware, software, and alternative accessories and peripherals that accompaniment the Company’s products. Action and Government The Aggregation additionally sells its accouterments and software articles to action and government barter in anniversary of its geographic segments. The Company’s articles are deployed in these markets because of their power, productivity, affluence of use and the artlessness of seamless affiliation into admonition technology environments. The Company’s articles are accordant with bags of third-party business applications and services, and its accoutrement accredit the development and defended deployment of custom applications as able-bodied as alien accessory administration. Business Alignment The Aggregation manages its business primarily on a geographic basis. Accordingly, the Aggregation has bent that its reportable operating segments, which are about based on the attributes and area of its customers, abide of the Americas, Europe, Japan, Asia-Pacific and Retail. The after-effects of the Americas, Europe, Japan and Asia-Pacific reportable segments do not board the after-effects of the Retail segment. The Americas articulation includes both North and South America. The Europe articulation includes European countries, as able-bodied as the Middle East and Africa. The Asia-Pacific articulation includes Australia and Asian countries, alternative than Japan. The Retail articulation operates Apple retail food worldwide. Anniversary reportable operating articulation provides agnate accouterments and software articles and agnate services. Further admonition apropos the Company’s operating segments may be begin in Allotment II, Item 7 of this Form 10-K beneath the subheading “Segment Operating Performance,” and in Allotment II, Item 8 of this Form 10-K in Notes to Consolidated Banking Statements in Note 8, “Segment Admonition and Geographic Data. ” Articles The Aggregation offers a ambit of adaptable admonition and media devices, claimed accretion products, and carriageable agenda music players, as able-bodied as a array of accompanying software, services, peripherals, networking solutions and third-party accouterments and software products. In addition, the Aggregation ffers its own software products, including iOS, the Company’s proprietary adaptable operating system; Mac OS X, the Company’s proprietary operating arrangement software for the Mac; server software and appliance software for consumer, SMB, and education, action and government customers. The Company’s primary articles are discussed below. iPhone iPhone combines a adaptable phone, an iPod, and an Internet communications accessory in a distinct handheld product. Based on the Company’s Multi-Touch™ user interface, iPhone features desktop-class email, web browsing, searching, and maps and is accordant with both Macs and Windows-based computers. Buzz automatically syncs agreeable from users’ iTunes libraries, as able-bodied as contacts, bookmarks, and email accounts. iPhone allows barter to admission the iTunes Abundance to download audio and video files, as able-bodied as a array of alternative agenda agreeable and applications. In October 2011, the Aggregation launched iPhone 4S, its latest adaptation of iPhone, which includes Siri™, a articulation activated able assistant. In accession to the Company’s own iPhone accessories, third-party iPhone accordant accessories are accessible through the Company’s online and retail food and from third parties. Pad iPad is a multi-purpose adaptable accessory for browsing the web, annual and sending email, examination photos, watching videos, alert to music, arena games, annual e-books and more. iPad is based on the Company’s Multi-Touch technology and allows barter to affix with their applications and agreeable in a added alternate way. iPad allows barter to admission the iTunes Abundance to download audio and video files, as able-bodied as a array of alternative agenda agreeable and applications. In March 2011, the Aggregation alien iPad 2, its second-generation iPad. In accession to the Company’s own iPad accessories, third-party iPad accordant accessories are accessible through the Company’s online and retail food and from third parties. Mac Accouterments Articles The Aggregation offers a ambit of claimed accretion articles including desktop and carriageable computers, accompanying accessories and peripherals, and third-party accouterments products. The Company’s Mac desktop and carriageable systems affection Intel microprocessors, the Mac OS X Lion operating arrangement and the iLife ® suite of software for conception and administration of agenda photography, music, movies, DVDs and websites. The Company’s desktop computers board iMac  Mac Pro and Mac mini. The iMac desktop computer has an all-in-one architecture that incorporates a display, processor, cartoon card, storage, anamnesis and alternative apparatus central a distinct enclosure. The Mac Pro desktop computer is targeted at business and able barter and is advised to accommodated the performance, expansion, and networking needs of the best ambitious Mac user. The Mac mini is a desktop computer in a bunched enclosure. . iPod The Company’s iPod band of carriageable agenda music and media players includes iPod touch, iPod nano ® , iPod shuffle ® and iPod classic ® . All iPods assignment with iTunes. In accession to the Company’s own iPod accessories, third-party iPod accordant accessories are available, through the Company’s online and retail food or from third parties. The iPod touch, based on iOS, is a flash-memory-based iPod with a widescreen affectation and a Multi-Touch user interface. iPod blow allows barter to admission the iTunes Abundance to download audio and video content, as able-bodied as a array of agenda applications. The iPod nano is a flash-memory-based iPod that appearance the Company’s Multi-Touch interface acceptance barter to cross their music accumulating by borer or annexation the display. The iPod nano appearance a able aluminum and bottle asylum with a congenital clip. The iPod drag is a flash-memory-based iPod that appearance a clickable ascendancy pad to ascendancy music playback and VoiceOver technology enabling barter to apprehend song titles, artists and playlist names. The iPod archetypal is a hard-drive based carriageable agenda music and video player. iTunes ® Tunes is an appliance that supports the purchase, download, alignment and playback of agenda audio and video files and is accessible for both Mac and Windows-based computers. iTunes 10 is the latest adaptation of iTunes and appearance AirPlay ® wireless music playback, Genius Mixes, Home Sharing, and bigger syncing functionality with iOS devices. Mac App Abundance In January 2011, the Aggregation opened the Mac App Abundance acceptance barter to discover, download and install applications for their Macs. The Mac App Abundance offers applications in education, games, cartoon and design, lifestyle, productivity, utilities and alternative categories. The Company’s Mac OS X operating arrangement software and iLife and iWork ® application software are additionally accessible on the Mac App Store. iCloud In October 2011, the Aggregation launched iCloud, its new billow service, which food music, photos, applications, contacts, calendars, and abstracts and wirelessly pushes them to assorted iOS devices, Macs and Windows-based computers. iCloud’s appearance board iTunes in the Cloud, Photo Stream, Abstracts in the Cloud, Contacts, Calendar, Mail, automatic downloads and acquirement history for applications and iBooks, and iCloud Backup. Users can assurance up for chargeless admission to iCloud appliance a accessory active iOS 5 or a Mac active Mac OS X Lion. Software Articles and Computer Technologies The Aggregation offers a ambit of software articles for consumer, SMB, education, action and government customers, including the Company’s proprietary iOS and Mac OS X operating arrangement software; server software; able appliance software; and consumer, education, and business advancing appliance software. Operating Arrangement Software iOS OS is the Company’s adaptable operating arrangement that serves as the foundation for iOS devices. In October 2011, the Aggregation appear iOS 5, which supports iCloud and includes new appearance such as Notification Center, a way to appearance and administer notifications in one place; iMessage™, a messaging annual that allows users to accelerate argument messages, photos and videos amid iOS devices; and Newsstand, a way to acquirement and adapt bi-weekly and annual subscriptions. Mac OS X Mac OS X, the operating arrangement for Macs, is congenital on an open-source UNIX-based foundation. Mac OS X Lion is the eighth above absolution of Mac OS X and became accessible in July 2011. Mac OS X Lion includes abutment for new Multi-Touch gestures; iCloud integration; system-wide abutment for abounding awning applications; Mission Control™, a way to appearance aggregate active on a user’s Mac; the Mac App Store; Launchpad™, a new home for a user’s applications; and a redesigned Mail application. Appliance Software iLife iLife ’11 is the latest adaptation of the Company’s consumer-oriented agenda affairs appliance apartment included with all Mac computers. Life appearance iPhoto ® , iMovie ® , iDVD ® , GarageBand ® , and iWeb™. iPhoto is the Company’s consumer-oriented agenda photo appliance and iMovie is the Company’s consumer-oriented agenda video alteration software application. iDVD is the Company’s consumer-oriented software appliance that enables barter to about-face iMovie files, QuickTime files, and agenda pictures into alternate DVDs. GarageBand is the Company’s consumer-oriented music conception appliance that allows barter to play, almanac and actualize music. Web allows barter to actualize online photo albums, blogs and podcasts, and to adapt websites appliance alteration tools. iWork iWork ’09 is the latest adaptation of the Company’s chip abundance apartment advised to advice users create, present, and broadcast documents, presentations, and spreadsheets. iWork ’09 includes Pages ® ’09 for chat processing and folio layout, Keynote ® ’09 for presentations, and Numbers ® ’09 for spreadsheets. The Aggregation additionally has a Multi-Touch adaptation of anniversary iWork appliance advised accurately for use on iOS devices. Alternative Appliance Software The Aggregation additionally sells assorted alternative appliance software, including Final Cut Pro ® , Logic Studio ® , Logic ® Express 9, Logic Studio ® Pro, and its FileMaker ® Pro database software. Displays & Borderline Articles The Aggregation articles the Apple LED Cinema Display™ and Thunderbolt Display. The Aggregation additionally sells a array of Apple-branded and third-party Mac-compatible and iOS-compatible borderline products, including printers, accumulator devices, computer memory, agenda video and still cameras, and assorted alternative accretion articles and supplies. Apple TV Apple TV allows barter to watch movies and television shows on their aerial analogue television. Agreeable from iTunes, Netflix, YouTube, and Flickr as able-bodied as music, photos, videos, and podcasts from a Mac or Windows-based computer can additionally be wirelessly streamed to a television through Apple TV. With the absolution of iCloud in October 2011, agreeable purchased on Apple TV can be re-downloaded on iOS devices. Artefact Abutment and Casework AppleCare ® offers a ambit of abutment options for the Company’s customers. These options board abetment that is congenital into software products, printed and cyberbanking artefact manuals, online abutment including absolute artefact admonition as able-bodied as abstruse assistance, and the AppleCare Protection Plan (“APP”). APP is a fee-based annual that about includes two to three years of buzz abutment and accouterments aliment and committed web-based abutment resources. Markets and Administering The Company’s barter are primarily in the consumer, SMB, and education, action and government markets. The Aggregation uses a array of absolute and aberrant administering channels, such as its retail stores, online stores, and absolute sales force, and third-party cellular arrangement carriers, wholesalers, retailers, and value-added resellers. The Aggregation believes that sales of its avant-garde and differentiated articles are added by abreast salespersons who can back the bulk of the accouterments and software integration, and authenticate the different solutions that are accessible on its products. The Aggregation added believes accouterment absolute acquaintance with its targeted barter is an able way to authenticate the advantages of its articles over those of its competitors and accouterment a high-quality sales and after-sales abutment acquaintance is analytical to alluring new and application absolute customers. To ensure a high-quality affairs acquaintance for its articles in which annual and apprenticeship are emphasized, the Aggregation continues to aggrandize and advance its administering capabilities by accretion the cardinal of its own retail food worldwide. Additionally, the Aggregation has invested in programs to enhance reseller sales by agreement aerial affection Apple fixtures, affairs abstracts and alternative assets aural called third-party reseller locations. Through the Apple Premium Reseller Program, assertive third-party resellers focus on the Apple belvedere by accouterment a aerial akin of affiliation and abutment services, and artefact expertise. No distinct chump accounted for added than 10% of net sales in 2011 or 2010. One of the Company’s barter accounted for 11% of net sales in 2009. Competition The markets for the Company’s articles and casework are awful advancing and the Aggregation is confronted by advancing antagonism in all areas of its business. These markets are characterized by accepted artefact introductions and accelerated abstruse advances that accept essentially added the capabilities and use of adaptable admonition and media devices, claimed computers, and alternative agenda cyberbanking devices. The Company’s competitors who advertise adaptable accessories and claimed computers based on alternative operating systems accept aggressively cut prices and bargain their artefact margins to accretion or advance bazaar share. The Company’s banking action and operating after-effects can be abnormally afflicted by these and alternative industry-wide bottomward pressures on gross margins. Principal advancing factors important to the Aggregation board price, artefact features, about price/performance, artefact affection and reliability, architecture innovation, a able third-party software and peripherals ecosystem, business and administering capability, annual and support, and accumulated reputation. The Aggregation is focused on accretion its bazaar opportunities accompanying to adaptable admonition and media devices. These industries are awful advancing and board several large, well-funded and accomplished participants. The Aggregation expects antagonism in these industries to accent decidedly as competitors attack to imitate some of the appearance of the Company’s articles and applications aural their own articles or, alternatively, coact with anniversary alternative to action solutions that are added advancing than those they currently offer. These industries are characterized by advancing appraisement practices, accepted artefact introductions, evolving architecture approaches and technologies, accelerated acceptance of abstruse and artefact advancements by competitors, and bulk acuteness on the allotment of consumers and businesses. The Company’s agenda agreeable casework accept faced cogent antagonism from alternative companies announcement their own agenda music and agreeable articles and services, including those alms chargeless peer-to-peer music and video services. The Aggregation believes it offers above accession and affiliation of the absolute band-aid including the accouterments (iPhone, iPad, Mac, and iPod), software (iTunes), and administering of agenda agreeable and applications (iTunes Store, App Store, iBookstore and Mac App Store). Some of the Company’s accepted and abeyant competitors accept abundant assets and may be able to board such articles and casework at little or no accumulation or alike at a accident to attempt with the Company’s offerings. The Company’s approaching banking action and operating after-effects depend on the Company’s adeptness to abide to advance and action new avant-garde articles and casework in anniversary of the markets it competes in. Analysis and Development Because the industries in which the Aggregation competes are characterized by accelerated abstruse advances, the Company’s adeptness to attempt auspiciously depends heavily aloft its adeptness to ensure a around-the-clock and appropriate breeze of advancing products, casework and technologies to the marketplace. The Aggregation continues to advance new technologies to enhance absolute articles and to aggrandize the ambit of its artefact offerings through analysis and development, licensing of bookish acreage and accretion of third-party businesses and technology. Absolute analysis and development bulk was $2. 4 billion, $1. 8 billion and $1. 3 billion in 2011, 2010 and 2009, respectively. Patents, Trademarks, Copyrights and Licenses The Aggregation currently holds rights to patents and copyrights apropos to assertive aspects of its iPhone, iPad, Mac and iPod devices, peripherals, software and services. The Aggregation has registered or has activated for trademarks and annual marks in the U. S. and a cardinal of adopted countries. Although the Aggregation believes the buying of such patents, copyrights, trademarks and annual marks is an important agency in its business and that its success does depend in allotment on the buying thereof, the Aggregation relies primarily on the avant-garde skills, abstruse adequacy and business abilities of its personnel. The Aggregation consistently files apparent applications to assure inventions arising from its analysis and development, and is currently advancing bags of apparent applications about the world. Over time, the Aggregation has accumulated a ample portfolio of issued patents in the U. S. and worldwide. The Aggregation holds copyrights apropos to assertive aspects of its articles and services. No distinct apparent or absorb is alone amenable for attention the Company’s products. The Aggregation believes the continuance of its patents is able about to the accepted lives of its products. Due to the fast clip of accession and artefact development, the Company’s articles are about anachronistic afore the patents accompanying to them expire, and sometimes are anachronistic afore the patents accompanying to them are alike granted. Many of the Company’s articles are advised to board bookish acreage acquired from third parties. While it may be all-important in the approaching to seek or renew licenses apropos to assorted aspects of its articles and business methods, based aloft accomplished acquaintance and industry practice, the Aggregation believes such licenses about could be acquired on commercially reasonable terms; however, there is no agreement that such licenses could be acquired at all. Because of abstruse changes in the industries in which the Aggregation competes, accepted all-encompassing apparent coverage, and the accelerated bulk of arising of new patents, it is accessible that assertive apparatus of the Company’s articles and business methods may aback borrow absolute patents or bookish acreage rights of others. From time to time, the Aggregation has been notified that it may be anarchic assertive patents or alternative bookish acreage rights of third parties. Adopted and Domestic Operations and Geographic Abstracts The U. S. epresents the Company’s better geographic market. About 39% of the Company’s net sales in 2011 came from sales to barter central the U. S. Final accumulation of the Company’s articles is currently performed in the Company’s accomplishment adeptness in Ireland, and by outsourcing partners, primarily amid in Asia. The accumulation and accomplish of a cardinal of apparatus is performed by sole-sourced outsourcing ally in the U. S. , Asia and Europe. Single-sourced outsourcing ally in Asia accomplish final accumulation of essentially all of the Company’s accouterments products. Margins on sales of the Company’s articles in adopted countries, and on sales of articles that board apparatus acquired from adopted suppliers, can be abnormally afflicted by adopted bill barter bulk fluctuations and by all-embracing barter regulations, including tariffs and antidumping penalties. Admonition apropos banking abstracts by geographic articulation is set alternating in Allotment II, Item 7 and Item 8 of this Form 10-K and in Notes to Consolidated Banking Statements in Note 8, “Segment Admonition and Geographic Data. ” Melancholia Business The Aggregation has historically accomplished added net sales in its aboriginal budgetary division compared to alternative abode in its budgetary year due to added anniversary melancholia demand. This actual arrangement should not be advised a reliable indicator of the Company’s approaching net sales or banking performance. Assurance The Aggregation offers a bound genitalia and action assurance on best of its accouterments products. The basal assurance aeon is about one year from the date of acquirement by the aboriginal end-user. The Aggregation additionally offers a 90-day basal assurance for its annual genitalia acclimated to adjustment the Company’s accouterments products. In addition, consumers may acquirement the APP, which extends annual advantage on abounding of the Company’s accouterments articles in best of its above markets. Advisers As of September 24, 2011, the Aggregation had about 60,400 full-time agnate advisers and an added 2,900 full-time agnate acting advisers and contractors. APPLE INC. (Exact name of apprentice as defined in its charter) Arrangement Analysis | 2008| 2009| 2010| 2011| | Clamminess Ratios| a. Accepted Ratio:A clamminess arrangement that measures a company's adeptness to pay concise obligations. The Accepted Arrangement blueprint is: Also accepted as "liquidity ratio", "cash asset ratio" and "cash ratio". | Accepted Asset/Current Liability| 32311/14092| 36265/19282| 41678/20722| 44988/27970| | 2. 293| 1. 881| 2. 011| 1. 609| industry average| 2. 00| 1. 8| 2. 1| 1. 5| Accepted Arrangement Comparisons :Ratio is stronger than the industry average. | | b. Acid Test Ratio:A acrimonious indicator that determines whether a close has abundant concise assets to awning its actual liabilities afterwards affairs inventory. The acid-test arrangement is far added arduous than the alive basic ratio, primarily because the alive basic arrangement allows for the admittance of annual assets. Calculated by: | (Current Asset- Boilerplate inventory)/Current Liability| (32311-509)/14092| (36265-482)/19282| (41678-753)/20722| (44988-913. 5)/27970| | 2. 257| 1. 86| 1. 961| 1. 581| industry average| 2. 20| 1. 80| 2. 00| 1. 50| Acid Test Arrangement Comparisons :Ratio is weaker than the industry boilerplate in aboriginal 3 years but axle at aftermost year. | | Summary of the Clamminess Arrangement Comparisons * Able accepted arrangement and anemic acid-test arrangement indicates a abeyant botheration in the inventories account. * Note that this industry has a almost aerial akin of inventories. | Banking Advantage Ratios| a. Debt to equity:A admeasurement of a company's banking advantage affected by abacus its absolute liabilities by stockholders' equity. It indicates what admeasurement of disinterestedness and debt the aggregation is appliance to accounts its assets. Note: Sometimes alone interest-bearing, abiding debt is acclimated instead of absolute liabilities in the calculation. Additionally accepted as the Claimed Debt/Equity Ratio, this arrangement can be activated to claimed banking statements as able-bodied as accumulated ones. | Absolute debt/Shareholders ' Equity| 18542/21030| 26019/27832| 27392/47791| 39756/76615| | 0. 882| 0. 935| 0. 573| 0. 519| industry average| . 89| . 95| . 5| . 50| Debt to disinterestedness Arrangement Comparisons :Has boilerplate debt appliance about to the industry average. | | b. Debt to absolute asset:A metric acclimated to admeasurement a company's banking accident by free how abundant of the company's assets accept been financed by debt. Affected by abacus concise and abiding debt and again abacus by the company's absolute assets. | Absolute debt/Total asset| 18542/39572| 26019/53851| 27392/75183| 39756/116371| | 0. 469| 0. 483| 0. 364| 0. 342| industry average| . 45| . 50| . 35| . 35| Debt to absolute asset Arrangement Comparisons :Has boilerplate debt appliance about to the industry average. | c. Absolute Capitalization:The assets arrangement measures the debt basic of a company's capital structure, or assets (i. e. , the sum of abiding debt liabilities and shareholders' equity) to abutment a company's operations and growth. | | | | Debt/capitalization| 18542/25480| 26019/34569| 27392/54461| 39756/88401| | . 73| . 75| . 50| . 45| industry average| . 75| . 75| . 50| . 45| Absolute Assets Arrangement Comparisons :Has boilerplate abiding debt appliance about to the industry average. | | Advantage Ratios| a. Absorption Coverage:A arrangement acclimated to actuate how calmly a aggregation can ay absorption on outstanding debt. The absorption advantage arrangement is affected by abacus a company's balance afore absorption and taxes (EBIT) of one aeon by the company's absorption costs of the aforementioned period: | EBIT/Interest charges| 6895/2242| 7984/2360| 18540| 34205| | 3. 075| 3. 383| -| -| industry average| 3. 2| 3. 5| -| -| Absorption Advantage Arrangement Comparisons :Has beneath boilerplate absorption advantage about to the industry average. | | Summary of the Advantage Trend Analysis * The absorption advantage arrangement for Apple Inc. has been falling back 2008. It has been beneath industry averages for the accomplished two years. This indicates that low balance (EBIT) may be a abeyant botheration for BW. * Note, we apperceive that debt levels are in band with the industry averages. | Action ratios| a. Receivable Turnover:An accounting admeasurement acclimated to quantify a firm's capability in extending acclaim as able-bodied as accession debts. The receivables about-face arrangement is an action ratio, barometer how calmly a close uses its assets. Formula: Some companies' letters will alone appearance sales - this can affect the arrangement depending on the admeasurement of banknote sales. | Annual net acclaim sales/ Boilerplate receivables| 32497/2422| 36537/3361| 65225/5510| 108249/5369| | 13. 17| 10. 871| 11. 838| 20. 162| industry average| 15| 10| 13| 20| Receivable About-face Arrangement Comparisons :Ratio is stronger than the industry average. | | b. Boilerplate accumulating period:The almost bulk of time that it takes for a business to accept payments owed, in agreement of receivables, from its barter and clients. Affected as: Where: Canicule = Absolute bulk of canicule in aeon AR = Boilerplate bulk of accounts receivables Acclaim Sales = Absolute bulk of net acclaim sales during period| Canicule in year/receiveable turnover| 365/13. 417| 365/10. 871| 365/11. 838| 365/20. 62| | 27. 204| 33. 576| 30. 833| 18. 103| industry average| 25| 36| 30| 20| Boilerplate accumulating aeon Arrangement Comparisons :Has bigger the boilerplate accumulating aeon to that of the industry average. | | c. Annual turnover:A arrangement assuming how abounding times a company's annual is awash and replaced over a period. The canicule in the aeon can again be disconnected by the annual about-face blueprint to account the canicule it takes to advertise the annual on duke or "inventory about-face days. " | Cost of appurtenances sold/Average inventory| 21334/509| 25683/482| 39541/753| 64431/913. 5| | 41. 914| 53. 8| 52. 51| 70. 53| industry average| 42| 53| 53| 70| Annual about-face Arrangement Comparisons :Has almost acceptable turnover. | | d. Absolute asset turnover:The bulk of sales generated for every dollar's account of assets. It is affected by abacus sales in dollars by assets in dollars. Formula: This arrangement is added advantageous for advance companies to analysis if in actuality they are growing acquirement in admeasurement to sales. Additionally accepted as the Asset About-face Ratio. | Net sales/ absolute asset| 32479/39571| 42905/53851| 65225/75183| 108249/116371| | . 821| . 797| . 868| . 930| industry average| . 2| . 80| . 85| . 90| Absolute asset about-face Arrangement Comparisons :Has almost able turnover. | | Advantage Ratios| a. Net accumulation margin:A arrangement of advantage affected as net assets disconnected by revenues, or net profits disconnected by sales. It measures how abundant out of every dollar of sales a aggregation absolutely keeps in earnings. | Net accumulation afterwards tax/Net sales| 4834/32479| 8235/42905| 14013/65225| 25922/108249| | . 149| . 192| . 215| . 239| industry average| . 15| . 20| . 20| . 24| Net accumulation allowance Arrangement Comparisons :Has boilerplate Net Accumulation Margin. | | b. Return on investment: "Return on investment(ROI) rate of return (ROR), additionally accepted as 'rate of profit' or sometimes aloof 'return', is the arrangement ofmoney gained or absent (whether accomplished or unrealized) on an investment relative to the bulk of money invested. Agnate banking measures with variations on how 'investment' is defined: * Acknowledgment on assets (ROA), * Acknowledgment on net assets (RONA), * Acknowledgment on basic employed (ROCE) * Acknowledgment on invested capital (ROIC) * Social acknowledgment on investment (SROI)| NPAT/Total asset| 4834/39572| 8235/53851| 14013/75183| 25922/116371| | . 122| . 153| . 87| . 223| industry average| . 125| . 15| . 18| . 20| Acknowledgment on advance Arrangement Comparisons :Has able Acknowledgment on Investment. | | c. Acknowledgment on equity:The bulk of net assets alternate as a allotment of shareholders equity. Acknowledgment on disinterestedness measures a corporation's advantage by absolute how abundant accumulation a aggregation generates with the money shareholders accept invested. ROE is bidding as a allotment and affected as: Acknowledgment on Disinterestedness = Net Income/Shareholder's Disinterestedness Net assets is for the abounding budgetary year (before assets paid to accepted banal holders but afterwards assets to adopted stock. Shareholder's disinterestedness does not board adopted shares. Additionally accepted as "return on net worth" (RONW). | NPAT/Shareholders equity| 25922/21030| 8235/27832| 14013/477931| 25922/76615| | . 229| . 296| . 293| . 338| industry average| . 23| . 29| . 29| . 350| Acknowledgment on disinterestedness Arrangement Comparisons :Has boilerplate Acknowledgment on equity. | | Summary of the Advantage Trend Analyses * The advantage ratios for Apple Inc. accept ALL been boilerplate back 2008. Anniversary has been beneath the industry averages for the accomplished four years. * This indicates that COGS and authoritative costs may both be too aerial and a abeyant botheration for Apple Inc. Note, this aftereffect is constant with the low absorption advantage ratio. | Summary of Arrangement Analyses * Inventories are too high. * May be advantageous off creditors (accounts payable) too soon. * COGS may be too high. * Selling, general, and authoritative costs may be too high. | Accepted Admeasurement Analysis- Particulars| 2008| 2009| 2010| 2011| | 2008| 2009| 2010| 2011| Assets| | | | | | | | | | Accepted assets:| | | | | | | | | | Banknote ; banknote equivalents| 11875| 5263| 11261| 9815| | 30. 01| 9. 77| 14. 98| 8. 43| Short appellation bankable securities| 10236| 18201| 14359| 16137| | 25. 87| 33. 80| 19. 10| 13. 7| A/R| 2422| 3361| 5510| 5369| | 6. 12| 6. 24| 7. 33| 4. 61| Inventories| 509| 455| 1051| 776| | 1. 29| . 85| 1. 40| . 67| Differed tax assets| 1447| 2101| 1636| 2014| | 3. 66| 3. 90| 2. 18| 1. 73| Vendor non-trade receivables| -| -| 4414| 6348| | -| -| 5. 87| 5. 46| Alternative accepted assets| 5822| 6884| 3447| 4529| | 14. 71| 12. 78| 4. 59| 3. 89| Absolute accepted assets| 32311| 36265| 41678| 44988| | 81. 04| 67. 34| 55. 435| 38. 659| Abiding bankable securities| 2379| 10528| 5391| 55618| | 6. 01| 19. 55| 7. 171| 47. 794| Property, bulb and equipment, net| 2455| 2954| 4786| 7777| | 6. 20| 5. 486| 6. 336| 6. 83| Goodwill| 207| 206| 741| 896| | . 52| . 383| . 986| . 769| Acquired abstract assets, net| 285| 247| 342| 3536| | . 72| . 495| . 455| 3. 039| Alternative assets| 1935| 3651| 2263| 3556| | 4. 890| 6. 780| 3. 010| 3. 056| Absolute assets| 39572| 53851| 75183| 116371| | 100| 100| 100| 100| | | | | | | | | | | LIABILITIES AND SHAREHOLDERS’ EQUITY:| | | | | | | | | | Accepted liabilities:| | | | | | | | | | Accounts payable| 5520| 5601| 12015| 14632| | 13. 942| 10. 401| 15. 981| 12. 574| Accrued expenses| 3719| 3376| 5723| 9247| | 9. 398| 6. 269| 7. 612| 7. 946| Deferred revenue| 4853| 10305| 2984| 4091| | 12. 64| 19. 136| 3. 969| 3. 516| Absolute accepted liabilities| 14092| 19282| 20722| 27970| | 35. 611| 35. 806| 27. 562| 24. 035| Deferred acquirement – non-current| 3029| 4485| 1139| 1686| | 7. 654| 8. 329| 1. 515| 1. 449| Alternative non-current liabilities| 1421| 2252| 5531| 10100| | 3. 591| 4. 182| 7. 357| 8. 679| Absolute liabilities| 18542| 26019| 27392| 39756| | 46. 856| 48. 317| 36. 434| 34. 163| Commitments and contingenciesShareholders’ equity:| | | | | | | | | | Accepted stock, no par value; 1,800,000 shares authorized; 929,277 and 915,970 shares issued and outstanding, respectively| 7177| 8210| 10668| 13331| | 18. 37| 15. 246| 14. 189| 11. 456| Retained earnings| 13845| 19538| 37169| 62841| | 34. 987| 36. 282| 49. 438| 54. 001| Accumulated alternative absolute income/(loss)|   8| 84| (46)| 443| | . 020| . 156| (. 061)| . 381| Absolute shareholders’ equity| 21030| 27832| 47791| 76615| | 53. 144| 51. 683| 63. 566| 65. 837| Absolute liabilities and shareholders’ equity| 39572| 53851| 75183| 116371| | 100| 100| 100| 100| Index Analysis- Particulars| 2008| 2009| 2010| 2011| | 2008| 2009| 2010| 2011| Assets| | | | | | | | | | Accepted assets:| | | | | | | | | | Banknote ; banknote equivalents| 11875| 5263| 11261| 9815| | 100| 14. 13| 27. 019| 21. 897| Short appellation bankable securities| 10236| 18201| 14359| 16137| | 100| 39. 204| 34. 452| 35. 870| A/R| 2422| 3361| 5510| 5369| | 100| 9. 27| 13. 221| 11. 934| Inventories| 509| 455| 1051| 776| | 100| 1. 26| 2. 522| 1. 752| Differed tax assets| 1447| 2101| 1636| 2014| | 100| 5. 79| 3. 925| 4. 477| Vendor non-trade receivables| -| -| 4414| 6348| | -| -| 10. 591| 14. 111| Alternative accepted assets| 5822| 6884| 3447| 4529| | 100| 18. 983| 8. 271| 10. 067| Absolute accepted assets| 32311| 36265| 41678| 44988| | 100| 67. 34| 55. 435| 38. 59| Abiding bankable securities| 2379| 10528| 5391| 55618| | 100| 19. 55| 7. 171| 47. 794| Property, bulb and equipment, net| 2455| 2954| 4786| 7777| | 100| 5. 486| 6. 336| 6. 683| Goodwill| 207| 206| 741| 896| | 100| . 383| . 986| . 769| Acquired abstract assets, net| 285| 247| 342| 3536| | 100| . 495| . 455| 3. 039| Alternative assets| 1935| 3651| 2263| 3556| | 100| 6. 780| 3. 010| 3. 056| Absolute assets| 39572| 53851| 75183| 116371| | 100| 100| 100| 100| | | | | | | | | | | LIABILITIES AND SHAREHOLDERS’ EQUITY:| | | | | | | | | | Accepted liabilities:| | | | | | | | | | Accounts payable| 5520| 5601| 12015| 14632| | 100| 10. 401| 15. 981| 12. 574| Accrued expenses| 3719| 3376| 5723| 9247| | 100| 6. 269| 7. 612| 7. 946| Deferred revenue| 4853| 10305| 2984| 4091| | 100| 19. 136| 3. 969| 3. 516| Absolute accepted liabilities| 14092| 19282| 20722| 27970| | 100| 35. 806| 27. 562| 24. 035| Deferred acquirement – non-current| 3029| 4485| 1139| 1686| | 100| 8. 329| 1. 515| 1. 449| Alternative non-current liabilities| 1421| 2252| 5531| 10100| | 100| 4. 182| 7. 357| 8. 679| Absolute liabilities| 18542| 26019| 27392| 39756| | 100| 48. 317| 36. 434| 34. 63| Commitments and contingenciesShareholders’ equity:| | | | | | | | | | Accepted stock, no par value; 1,800,000 shares authorized; 929,277 and 915,970 shares issued and outstanding, respectively| 7177| 8210| 10668| 13331| | 100| 15. 246| 14. 189| 11. 456| Retained earnings| 13845| 19538| 37169| 62841| | 100| 36. 282| 49. 438| 54. 001| Accumulated alternative absolute income/(loss)|   8| 84| (46)| 443| | 100| . 156| (. 061)| . 381| Absolute shareholders’ equity| 21030| 27832| 47791| 76615| | 100| 51. 683| 63. 566| 65. 837| Absolute liabilities and shareholders’ equity| 39572| 53851| 75183| 116371| | 100| 100| 100| 100|

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