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Running head: BALANCE SHEET ANALYSIS
Balance Sheet Analysis
Instructor
Date
1
BALANCE SHEET ANALYSIS
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Apple, Inc.
Apple posted its balance sheet for fiscal 2018, and 2019 and the elements analyzed
include the company’s assets, liabilities, and equity. Total assets were $365,705 in 2018 and
decreased to2019 to $338,516. The current assets held by the company include vendor non-trade
receivables, inventories market securities, accounts receivables, deferred tax, cash and cash
equivalents, and other current assets. In 2019, cash and cash equivalents increased to 14.43% of
total assets from 7.09% in 2018. The increase in cash and cash equivalents is caused by increased
cash flow from investment or operation. Inventories also increased from 1.08% in 2018 to 1.21%
in 2019, and slow-moving inventory can cause this. The accounts receivables declined from
7.06% in 2018 to 6.76% in 2019. The decline can be attributed to the decrease in credit sales.
Property, plant, and equipment declined from 11.29% to 11.04%, and this trend can be caused by
a decline in the purchase of new plant and equipment. Current marketable equity securities saw
a significant increase, while non-current marketable equity saw a significant decline.
All current liabilities held include accounts payable, deferred revenue, commercial paper,
and term debt. Short-term debt increased from 2.40% in 2018 to 3.03% in 2019. This increase
can be caused by the business focus to finance operations through debt that equity. Long-term
debt increased to 27.12% in 2019 from 25.63% in 2018. This can be attributed to an increase in
debt financing. Deferred revenue declined from 2.06% in 2018 to 1.63% in 2019. This can be
attributed to a decline in prepayments from customers. The commercial paper saw a significant
decline from 3.27% in 2018 to 1.77% in 2019 due to an overall decline in securities issued by the
company. Shareholder’s equity decreased from $107,147 in 2018 to $90,488 in 2019. The
decrease can be pegged to the liquidation of shares by certain shareholders. In 2018, the common
BALANCE SHEET ANALYSIS
stock contributed 10.99%, while in 2019, 13.34% of total equity. Retained earnings constituted
13.56% in 2019 and 19.25% in 2018 of the total equity.
3
Attached. Please let me know if you have any questions or need revisions.
Apple Inc.
Common-size consolidated Balance Sheet
(In millions except par value)
Current assets:
Cash and cash equivalents
Marketable securities
Account receivable net
Inventories
Vendor non-trade receivables
Other current assets
Total current asset
Non-current assets:
Marketable securities
Property, plant and equipment
Other non-current assets
Total non-current assets
Total assets
Current liabilities:
Accounts payable
Deferred revenue
Commercial paper
Term debt
other current liabilities
Total current liabilities
Non-current liabilities:
Term debt
other non-current liabilities
Total non-current liabilities
Total liabilities
Shareholders' equity:
Common stock and additional paid-in capital
Retained earnings
Accumulated other comprehensive income/(loss)
Total shareholders' equity
Total liabilities and shareholders' equity
2019
$
$
$
$
$
$
%
48,844
51,713
22,926
4,106
22,878
12,352
162,819
14.43%
15.28%
6.77%
1.21%
6.76%
3.65%
48.10%
105,341
37,378
32,978
175,697
338,516
31.12%
11.04%
9.74%
51.90%
100%
46,236
5,522
5,980
10,260
$37,720
$105,718
13.66%
1.63%
1.77%
3.03%
11.14%
31.23%
91,807
50,503
142,310
248,028
27.12%
6.19%
42.04%
73.27%
45,174
45,898
(584)
90,488
338,516
13.34%
13.56%
-0.17%
26.73%
100%
2018
$
$
$
$
$
%
25,913
40,388
23,166
3,956
25,809
12,087
131,319
7.09%
11.04%
6.33%
1.08%
7.06%
3.31%
35.91%
170,799
41,304
22,283
234,386
365,705
46.70%
11.29%
6.09%
64.09%
100%
55,888
5,966
11,964
8,784
33,327
115,929
15.28%
2.06%
3.27%
2.40%
8.94%
31.70%
93,735
48,914
142,649
258,578
25.63%
3.93%
38.75%
70.70%
40,201
70,400
(3,454)
107,147
365,725
10.99%
19.25%
-0.94%
29.30%
100%
Apple, Inc Common-Size Income Statement
(In millions of U.S $ except per share data)
Details
Revenue
Cost of Goods Sold
Gross Profit
Research and Development Expenses
SG&A Expenses
Other Operating Income/ Expense
Operating Expenses
Operating Income
Total Non-Operating Income/Expense
Pre-tax Income
Income Taxes
Other Income
Income from Continuous Operations
Income from Discountinued Operations
Net Income
EBITDA
EBIT
Basic Shares Outstanding
Shares Outstanding
Basic EPS
EPS
2019
%
$
$
$
$
$
260,174
161,782
98,392
16,217
18,245
100
62.182
37.818
6.233
7.013
$
$
$
$
$
196,244
63,930
1,807
65,737
10,481
75.428
24.572
0.695
25.267
4.028
$
55,256
21.238
$
$
$
$
$
$
$
55,256
76,477
63,930
18,471
18,586
2.99
2.97
56.159
29.395
24.572
7.099
7.144
0.001
0.001
ment
2018
%
$
$
$
$
$
265,595
163,756
101,839
14,236
16,705
100
61.656
38.344
5.360
6.290
$
$
$
$
$
194,697
70,898
2,005
72,903
13,372
73.306
26.694
0.755
27.449
8.166
$
59,531
22.414
$
$
$
$
$
$
$
59,531
81,801
70,898
19,822
20,000
3.00
2.98
58.456
30.799
26.694
7.463
7.530
0.001
0.001
Profitability Ratios
Liquidity Ratios
Gross margin = sales-cost of sales/revenue *100
2019, 98,392/260,174*100 = 37.82%,
2018, 101,839/265,595*100 = 38.34%
Current ratio = Current Assets/current laibilities
2019, 162,819/105,718 = 1.54
2018, 131,319/115,929 = 1.13
Net profit margin = Net profit/revenue * 100
2019, 55,256/260,174*100 = 21.24%
2018, 59,531/265.595*100% = 22.41%
Quick ratio = current assets-invetory/current laibilit
2019, 162,189-4,106/105,718 = 1.5
2018, 131,319-3,956/115929 = 1.1
Return on Assets = Net income/total assets
2019, 55,256/338,516 = 0.16
2018, 59,531/365,705 = 0.16
Net working capital = current assets-current liabiliti
2019, 162,819-105,718 = 57,101
2018, 131,319-115,929 = 15,390
Return on equity = Net income/equity
2019, 55,256/90,488 = 0.61
2018, 59,531/107,147 = 0.56
Cash ratio = cash & bank balances + current investm
2019, 48,844 + 105,341 + 51,713 = 1.95
105,718
2018, 25,913 + 51,713 + 105,341 = 1.56
115,929
Apple, Inc Ratio Analysis for Fiscal Period
Leverage ratios
ent Assets/current laibilities
assets-invetory/current laibilities
/105,718 = 1.5
/115929 = 1.1
= current assets-current ...