Apple Inc.’s Financial Results & Trends in 2012-14

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Table of Contents

Introduction
Financial Analysis
Conclusion
References

Introduction

When making investment decisions, it is important to look at several factors to ensure that the investment yields the necessary results after a specific period. Apple is one of the most profitable firms in the field of electronics. It has one of the best brands in the world. However, this does not automatically make it the right firm to invest in unless other parameters of the firm are critically analyzed (Pogue, 2010). In this study, it is important to review the financial documents of this firm to determine the viability of investing in it. In this study, the focus will be to analyze the financial results of this firm to determine the trends within the past year. This will help in informing the investment decision.

Financial Analysis

In this section, the focus will be put on the historical prices of the firm shares over the last two years. It is important to analyze the stock prices of this company over the last two years. The table below shows Apple’s stock prices for the last two years.

Table 1: Historical Prices for Apple Inc.

Prices

Date	Open	High	Low	Close	Avg Vol	Adj Close*
Oct 1, 2014	100.59	100.69	98.04	99.62	61,992,300	99.62
Sep 2, 2014	103.06	103.74	96.14	100.75	75,199,200	100.75
Aug 7, 2014	0.47 Dividend
Aug 1, 2014	94.90	102.90	93.28	102.50	46,452,300	102.50
Jul 1, 2014	93.52	99.44	92.57	95.60	49,637,900	95.13
Jun 9, 2014	7: 1 Stock Split
Jun 2, 2014	633.96	651.26	89.65	92.93	59,839,500	92.47
May 8, 2014	0.47 Dividend
May 1, 2014	592.00	644.17	580.33	633.00	74,996,300	89.98
Apr 1, 2014	537.76	599.43	511.33	590.09	82,044,000	83.42
Mar 3, 2014	523.42	549.00	522.81	536.74	61,552,000	75.87
Feb 6, 2014	0.43571 Dividend
Feb 3, 2014	502.61	551.19	499.30	526.24	82,267,500	74.39
Jan 2, 2014	555.68	560.20	493.55	500.60	109,889,900	70.34
Dec 2, 2013	558.00	575.14	538.80	561.02	86,672,400	78.83
Nov 6, 2013	0.43571 Dividend
Nov 1, 2013	524.02	558.33	512.38	556.07	69,291,000	78.14
Oct 1, 2013	478.45	539.25	478.28	522.70	88,189,400	73.02
Sep 3, 2013	493.10	507.92	447.22	476.75	111,138,700	66.60
Aug 8, 2013	0.43571 Dividend
Aug 1, 2013	455.75	513.74	453.26	487.22	94,666,300	68.07
Jul 1, 2013	402.69	457.34	401.22	452.53	77,966,700	62.81
Jun 3, 2013	450.73	454.43	388.87	396.53	94,963,100	55.03
May 9, 2013	0.43571 Dividend
May 1, 2013	444.46	465.75	418.90	449.73	111,725,300	62.42
Apr 1, 2013	441.90	445.25	385.10	442.78	132,443,500	61.05
Mar 1, 2013	438.00	469.95	419.00	442.66	120,246,400	61.03
Feb 7, 2013	0.37857 Dividend
Feb 1, 2013	459.11	484.94	437.66	441.40	127,191,400	60.86
Jan 2, 2013	553.82	555.00	435.00	455.49	160,032,800	62.44
Dec 3, 2012	593.65	594.59	501.23	532.17	159,903,000	72.95
Nov 7, 2012	0.37857 Dividend
Nov 1, 2012	598.22	603.00	505.75	585.28	158,585,300	80.23
Oct 4, 2012	671.25	674.25	587.70	595.32	153,568,900	81.23
* Close price adjusted for dividends and splits.

The table above gives a detailed monthly report about how the stock price of this company has been changing over the last two years. The stock price for this company has been fluctuating over the past two years. On October 4, 2012, the stock price for Apple Inc closed at 595.32. One year later on October 1, 2013, the stock price was quoted at 522.70. This was a massive drop of USD 72.62. One year later, the stock price was split seven times and on October 1, 2014, the stock price for this company was quoted at 99.62. This would translate to 697.34. This is an increase in the value of shares within the last one year by USD 174.64. This fluctuation in the stock price for this company indicates the trend of the company’s stock over the last several years.

Over the last two years, the company has been very profitable. The drastic drop in the stock price for this company dropped from 2012 to 2013 because of the reduced confidence that the investors had towards the new leadership of the company following the death of Steve Jobs. Many investors had trusted Jobs’ leadership style, and when he died, many of them thought that this firm would experience several challenges. However, this did not happen as the company remained profitable within that period. This convinced many investors that Apple had a strong foundation, and even without the leadership of Steve Jobs, it could still perform well (Beenhakker, 2007). That is why the stock prices increased within the last year.

The company has been very effective in using its resources to create revenue. According to Gilson and Altman (2010), employees are the most important resource in any organization. Apple Inc has been using its employees effectively to develop superior products in the market. The company has provided them with enabling technologies to enhance their creativity and innovativeness when handling various tasks. The company has also been using its financial resources to support research and extension. This explains why this firm is one of the leading companies in the use of emerging technologies.

Conclusion

From the analysis of Apple Inc’s performance over the last two years, several factors have been demonstrated. The company’s performance from October 4, 2012, to July 1, 2013, was not impressive because the firm was looking for a perfect replacement after the death of Steve Jobs. This poor performance was, therefore, justified. From July 1, 2013, to this day, the stock price for the company’s shares has improved because the investors are very confident about the future performance of the firm. With this impressive performance, I would not hesitate to invest in this company.

Given an opportunity, I would work for this company or even own it. This is so because of the good financial performance it has registered over the past two years. One of the main trends in this industry that may have a direct impact on this firm is the design of the products sold in this industry. Customers are now demanding larger screens for their phones. The market for smartphones and iPads is also increasing drastically. This means that the firm will need to adjust its products’ design. Based on the past performance of this firm, I believe that the financial performance of this firm will remain attractive. The following are some of the recommendations that this firm should follow.

The management should improve the working environment to maintain employee morale.
The firm should increase its budget for research and extension to develop new products.
The management should understand the changing tastes and preferences of the customers and offer them what meets their needs.

References

Beenhakker, H. (2007). Investment Decision Making in the Private and Public Sectors. Westport: Quorum Books.

Gilson, S. & Altman, E. (2010). Creating Value Through Corporate Restructuring: Case Studies for Bankruptcies, Buyouts, and Breakups. Hoboken, N.J: Wiley.

Pogue, M. (2010). Corporate Investment Decisions: Principles and Practice. New York: Business Expert Press.

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Apple Inc.’s Financial Results & Trends in 2012-14

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