Examination of Apple Inc.'s Financial Performance over the Last Three Years

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Provide a rationale for the U.S. publicly traded company that you selected, indicating the significant factors driving your decision as a financial manager. The focus of this analysis is to perform a thorough examination of Apple, Inc.’s financial performance over the past three years and its growing success since being founded in 1976. Apple upholds its focus on the design, development and marketing of personal computers, related software, peripherals, portable digital music players and related accessories. The company’s portfolio is structured around Mac computing systems, iPods, iPhones and servers. Apple has made radical financial advances over the past few years, which can be easily illustrated through this analysis. The company recorded a 35.3% increase in revenues over 2007 reaching $32.479 billion with a net profit of $4.834 billion equating to a 38.3% increase over 2007. With these increasing numbers year after year, Apple has blown away the industry averages while becoming a true contender in the fight against Microsoft, IBM, Dell and Hewlett-Packard (Apple, Inc., 2012). In choosing a company for the analysis the decision was clear because of the apparent strength of Apple as a company and the success that they are realizing during these tough economic times. Customers are still looking to buy Apple products like MacBook and iPhones even though times are tough; there is still the strong desire to get the latest and greatest technology no matter the cost. Determine the profile of the investor for which this company may be a fit, relative to that potential investor’s investment strategy. Provide support for your rationale Apple Incorporated (NASDAQ: AAPL) was founded in 1976 by Steven Wozniak, Steven Jobs and Ron ... ... middle of paper ... ...p://ccbn.10kwizard.com/xml/download.php?repo=tenk&ipage=5956638&format=PDF. Brigham, E. F., & Ehrhardt, M. C. (2014). Financial management (14th ed.). Mason, OH: South-Western Cengage Learning. DATAMONITOR: Apple Inc. (2012). Apple Computer, Inc. SWOT Analysis, Retrieved December 5, 2013 from Business Source Premier Database. Dennis, M. (2006). Key Financial Ratios for the Credit Department. Business Credit, 108(10), 62-62. Retrieved December 5, 2013 from Business Source Premier Database. Simmons, C. (2007). Falling off the Apple cart. Business Strategy Review, 18(3), 33-38. Wall Street Journal. Retrieved December 5, 2013 from http://blogs.wsj.com/digits/2010/08/12/wall-street-analyst-wants-apple-to-return-cash-to-investors/. Yahoo, Inc. (2012). Yahoo! Finance. Retrieved December 5, 2013 from http://finance.yahoo.com/q/bc?t=5y&s=AAPL&l=on&z=m&q=l&c=&c=%5EGSPC.

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