Apple Recommendation For Apple

2110 Words5 Pages

Recommendations Based on the reports listed above it is clear that Apple out performs their competitors. Over all Apple is a solid company which should continue to see year over year growth. Between 2014 and 2015 Apple has had a 3% growth in their Operating margin profit. Their Return on Equity has gone from 30% to 45% because they are using their investments to grow their earnings. While the ROE is related to debts, it is important to understand that Apple has primarily short term debts which the company pay off quickly, which is why I am making the recommendation to invest in Apple’s bonds. If an investor already owns stock in Apple, it would be a wise choice to hold on to it.
Apple’s growth in their net profit area is due to them producing cutting edge products. Apple has combined their new higher priced items with their lower priced products to increase their net operating profit. Apple has great management in place to ensure their employees are not being wasteful, which is helping to ensure they remain profitable. Each year Apple releases a more advanced IPhone, which is costlier than the previous year, which is causing their revenue to continue to grow. They have implemented a device trade in program, which gives a credit for older model devices when customers upgrade. This allows them to resale
Apples debt ratio, return on assets, and return on equity ratios are better than their competitors. Apple’s strength appears to be in their ability to produce cutting edge products. The IPhone is considered a premium product by their customers and is even profitable if it is resold from one consumer to another one. Apple had a 43.03% per-share increase between 2014 and

More about Apple Recommendation For Apple

Open Document