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Financial Analysis of Apple Inc.

Based on the financial analysis conducted on the financial statements of the most recent five

years of Apple Inc., it can be said that Apple financial performance in the last five years has been

good and is also expected to remain good in the future years as well. In the last three years, the

revenue of the company has been stable and improving. However in the years prior to that, Apple

had been witnessing up and down in terms of its revenues. Overall, the company earnings per

share has improved in the last five years, showing the growth of the earnings to its shareholders.

In terms of the balance sheet strength, the company total assets have declined in the last three

years. However, the cash on hand, specifically has improved[ CITATION App20 \l 1033 ]. The

company total gross profit and profit margin has improved slightly in the last three years after

declining in 2014. The company price to earnings ratio is 25 at the moment. This shows that the

company share is overvalued as the public is willing to pay 25 times more as compared to its

earnings per share. The company price per earnings has improved in 2018 and has continued to

increase till now in 2020 showing the strong financial a market strength of the company. The

liquidity of the company has also improved in the last three years as its current assets have

increased as compared to its current obligations showing its strong liquidity. The company

financial statements thus show the strong financial strength and capacity of the company.

Therefore, based on this analysis, it can be said that the company Apple inc is expected to
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improve its performance in the coming future years. The company innovative strategy and strong

market base is the key to its success[ CITATION NAS20 \l 1033 ].