Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Dividend payout case study
Dividend payout case study
Dividend payout case study
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Dividend payout case study
of 2015. The payment of good dividends is a reason enough for investors to put their money in Apple stocks. The dividends were paid as regular cash payouts. The payment of dividends shows how much the company is committed to stock holders’ investment and is focused on making returns on the investments (Benzinga Editorial, 2012).
The last rule is about investing in companies that either that fit into the investment framework by either pullback or when the market is breaking out from big consolidation area or base. The idea is that buying from large companies is easy to hold in the long run and is profitable. The general rule that was used to pick Apple Inc. was the consideration of its overall growth that is seen as above average earnings that are good for the general investment. It can also be observed that the demand for technology related products is currently on the increase. The millennials are getting into employment and making income. The consumption habits of the Millennials are seen as centered towards technological products such as smart phones, iPhones, and tablets. The change in demographic is likely to cause a surge in the sales of the products from Apple Inc and thus more revenue. An investment in the company is thus seen as proper and in order (Benzinga Editorial, 2012).
Investor Profile for Which Apple
…show more content…
The ratios can, therefore, be used as an appropriate budgetary control and group co-ordination. In most cases, the financial ratios are used to analyze financial trends while comparing one group’s performances to the other regarding financial. Financial ratio analysis is used to conduct financial forecasting for future financial situations like bankruptcy. The financial ratios that were used to evaluate the suitability for an investment in Apple Inc. Include earning per share, current ratio, quick ratio and price earnings ratio (Morgan & Stocken,
The first financial ratio of the analysis is the Price to Earnings ratio (“P/E ratio”). The ratio is computed by dividing the price of one share of common stock, by the earnings per share of common stock. This analysis uses diluted earnings per share which assumes the issuance of new stock for all existing stock options. Also, the price of the stock was computed as an average of the fourth quarter high and low stock prices published in the 10K report of each company, because the year end stock prices were not listed for all the companies. Because the P/E ratio measures the relative costliness of different stocks, in relation to their income, it provides a useful place to begin the analysis.
Ratio analysis are useful tools when judging the performance of a company by weighing and evaluating the operating performance (Block-Hirt). There are 13 significant ratios that can separate by four main categories, profitability, asset utilization, liquidity and debt utilization ratios. The ratio analysis covered here consists of eight various ratios with at least one from each of these main categories. These ratios were used to compare and contrast the performance of Verizon versus AT& T over the years 2005 and 2006.
Analysing the ratio of one with the other in the industry provides for better understanding about the performance of the company in market. An investor has to make a comparative analysis before making any investment decision.
Apple Computer Inc designs, manufactures, and markets personal computers and related personal computing and communication solutions. The return of Steve Jobs, the companies founder, as CEO has pulled the company’s stock price up 775-percent through his launch of innovative products such as the iMac computer line. On January 5, 2000, Jobs announced that he was dropping interim from his CEO title and taking the job full-time. With this news and Apple’s new products such as the iBook, a portable pc and Quick TV, an internet television access feature, Apple Computer is headed for success and is sure to increase their share in the computer market.
Recently, many companies have struggled during the economic downturn. Many investors have lost money in their investments. Usually during an economic crisis people invest in government bonds, health care, and commodities. However, the two companies being compared are in the industry of technology, which amazed many investors when both companies continued to make record-breaking growth during recent economic times. Apple Inc. is the maker of iPhone, iPad, iPod, iMac, MacBook, icloud digital storage and various different software applications.
Organizations use financial statements and ratio analysis assess financial performance viability. The ratio analysis are used to identify trends and to perform organizational comparison (financial) with other companies within same industry. Ratio analysis, using data reported on the financial statements, are divided into five major categories: common size, liquidity, solvency, efficiency, and profitability. This paper will assess the financial stability of John Hopkins Hospital (JHH) using the five ratio analysis.
Apple Inc. headquartered in Cupertino, California was founded in 1976 by three men named Steve Jobs, Steve Wozniak, and Ronald Wayne. Apple Inc. has a strong presence worldwide; the company currently has 478 Apple retail stores in 17 different countries. The company focuses primarily on designing, developing, and selling electronics, computer software, and online services. Some of the hardware products are; iPhone, Mac laptop, the Apple watch, and the iPad tablet. Apple Inc. has become one of the most important American companies due to its innovative skills. According to a Forbes article, “The Boston Consulting Group ranks Apple as the world’s most innovative company. Apple has topped BCG’s list of 50 companies every year since 2005.”(Adams,
Apple Inc.’s fundamental analysis includes objective, plan of action, market, and competing technology, and its governmental and operational traits which will be discussed in this section. They are as follows:
Within the last decade Apple has become one of the largest growing companies in the world and the largest valued company in the United States. According to a recent article in The Guardian, a global financial news website, “Apple set a record by becoming the first company to be valued at over $700bn (£446bn).” (Fletcher, N. 2014) This comes as no surprise to the average computer aficionado and shareholder as Apple has been making a name for itself since its inception. From its earliest Macintosh models to today’s iPhones, Apple has been a trailblazer for software, technology and revolutionizing the way we communicate on a Macro level. Their dedication to innovation, quality and service has made them
Any successful business owner or investor is constantly evaluating the performance of the companies they are involved with, comparing historical figures with its industry competitors, and even with successful businesses from other industries. To complete a thorough examination of any company's effectiveness, however, more needs to be looked at than the easily attainable numbers like sales, profits, and total assets. Luckily, there are many well-tested ratios out there that make the task a bit less daunting. Financial ratio analysis helps identify and quantify a company's strengths and weaknesses, evaluate its financial position, and shows potential risks. As with any other form of analysis, financial ratios aren't definitive and their results shouldn't be viewed as the only possibilities. However, when used in conjuncture with various other business evaluation processes, financial ratios are invaluable. By examining Ford Motor Company's financial ratios, along with a few other company factors, this report will give a clear picture of how the company is doing now and should do in the future.
Before beginning an analysis of a company it is necessary to have a complete set of financial statements, preferably for the pas few years so that historical trends can be obtained. Ratios are a way for anyone to get an idea of the financial performance of a company by using the information contained in the financial statements. Ratios are grouped into four basic categories, liquidity, activity, profitability, and financial leverage. This document will use a variety of these ratios to analyze the firm, Sample Company, as of December 31,2000.
I have leant that ratio analysis offers better insight of a company’s financial position on the short-term and long-term basis. However, I would recommend that investor advice should be based on ratio analysis that considers ratios from several years. This will ensure that the investor is making an informed decision based on the company’s financial ratio performance trend.
Ratios traditionally measure the most important factors such as liquidity, solvency and profitability, as well as other measures of solvency. Different studies have found various ratios to be the most efficient indicators of solvency. Studies of ratio analysis began in the 1930’s, with several studies of the concluding that firms with the potential to file bankruptcy all exhibited different ratios than those companies that were financially sound.
Ratios analysis also makes possible comparison of the performance of different divisions of the firm. The ratios are helpful in deciding about their efficiency or otherwise in the past and likely performance in the future.
...This frontier has reaped major benefits for their competitors in the Android market with a wide range of products targeting all income groups. Apple has begun the foray into developing products for lower income groups with the production of the iPhone 5c which is priced cheaper than it’s flagship product the iPhone 5s. A further advancement in that direction would reap major benefits for Apple. This second concern deals with a mixture of place and product in the marketing mix. Apple offers its operating system exclusively to Apple products and its unquestioned the success of that strategy, however, it must be said there exists a potential and real prospect of complete Apple domination of the software industry if it were to allow its operating system to float onto to other hardware providers in much the similar manner in which Microsoft has benefited greatly from.