Financial Statement Model for Apple

$ mm except per share

Company name Apple

Ticker AAPL
Share price as of last close $604.86
Latest closing share price date 5/19/2014
Latest fiscal year end date 9/28/2013
Circuit breaker: OFF

INCOME STATEMENT
Fiscal year 2011A 2012A
Fiscal year end date 9/24/11 9/29/12

Revenue 108,249 156,508

Cost of sales (enter as -) (64,431) (87,846)
Gross Profit 43,818 68,662
Research & development (enter as -) (2,429) (3,381)
Selling, general & administrative (enter as -) (7,599) (10,040)
Operating profit (EBIT) 33,790 55,241
Interest income 519 1,088
Interest expense (enter as -) 0 0
Other expense (enter as -) (104) (566)
Pretax profit 34,205 55,763
Taxes (enter expense as -) (8,283) (14,030)
Net income 25,922 41,733

Basic shares outstanding 924 935

Impact of dilutive securities 12 11
Diluted shares outstanding 937 945

Basic EPS $28.05 $44.64

Diluted EPS $27.68 $44.15

Growth rates & margins

Revenue growth NA 44.6%
Gross profit as % of sales 40.5% 43.9%
R&D margin 2.2% 2.2%
SG&A margin 7.0% 6.4%
Tax rate 24.2% 25.2%
EBITDA reconciliation
Depreciation & amortization 1,814 3,277
Stock based compensation 1,168 1,740
EBITDA 36,772 60,258

SEGMENTS
Fiscal year 2011A 2012A
Fiscal year end date 9/24/11 9/29/12
Product
iPhone 45,998 78,692
iPad 19,168 30,945
Mac 21,783 23,221
iPod 7,453 5,615
iTunes / Software / Services 9,373 12,890
Accessories 4,474 5,145
Total 108,249 156,508
% growth 44.6%

Units
iPhone 72,293 125,046
% growth 73.0%
iPad 32,394 58,310
% growth 80.0%
Mac 16,735 18,158
% growth 8.5%
iPod 42,620 35,165
% growth (17.5%)

ASPs
iPhone 636.3 629.3
% growth (1.1%)
iPad 591.7 530.7
% growth (10.3%)
Mac 1,301.6 1,278.8
% growth (1.8%)
iPod 174.9 159.7
% growth (8.7%)

iTunes / Software / Services 37.5%

Accessories 15.0%

BALANCE SHEET
Fiscal year 2012A
Fiscal year end date 9/29/12
Cash & equivalents ST & LT market. securities 121,251
Accounts receivable 10,930
Inventory 791
Deferred tax assets 2,583
Other current assets (inc. non-trade receivables) 14,220
Property, plant & equipment 15,452
Acquired intangible assets (inc. Goodwill) 5,359
Other assets 5,478
Total assets 176,064

Accounts payable 21,175

Accrued expenses & def rev. (current & non-current) 20,015
Revolver 0
Long term debt 0
Other non-current liabilities 16,664
Total liabilities 57,854

Common stock / additional paid in capital 16,422

Treasury stock 0
Retained earnings / accumulated deficit 101,289
Other comprehensive income / (loss) 499
Total equity 118,210

Balance check 0

Ratios
Net debt (121,251)
Asset turnover (Revenue / Total assets) 0.89x
Net profit margin 26.7%
Return on assets (ROA) 23.7%
Return on book equity (ROE) 35.3%

WORKING CAPITAL
Fiscal year 2012A
Fiscal year end date 9/29/12

Accounts receivable
Beginning of period
Increases / (decreases)
End of period

AR as % of sales
 Days sales outstanding (DSO)

Inventory
Beginning of period
Increases / (decreases)
End of period

Inventory as % of COGS
Inventory turnover

Accounts payable
Beginning of period
Increases / (decreases)
End of period

AP as % of COGS
Days payables outstanding (DPO)

Accrued expenses & def revenues

Beginning of period
Increases / (decreases)
End of period

Accrued expenses & def revs as % of sales

 2013A 2014P 2015P 2016P 2017P 2018P
9/28/13 9/30/14 9/30/15 9/30/16 9/30/17 9/30/18

170,910 179,381 188,389 196,830 206,514 217,643

(106,606) (112,830) (117,932) (123,216) (129,278) (136,245)
64,304 66,550 70,458 73,614 77,236 81,398
(4,475) (5,202) (5,840) (6,102) (6,402) (6,747)
(10,830) (12,198) (12,810) (13,384) (14,043) (14,800)
48,999 49,150 51,807 54,128 56,791 59,852
1,616
(136)
(324) (324) (324) (324) (324) (324)
50,155 48,826 51,483 53,804 56,467 59,528
(13,118) (12,841) (13,386) (13,989) (14,681) (15,477)
37,037 35,985 38,097 39,815 41,786 44,051

925
6
932

$40.03
$39.75

9.2% 5.0% 5.0% 4.5% 4.9% 5.4%

37.6% 37.1% 37.4% 37.4% 37.4% 37.4%
2.6% 2.9% 3.1% 3.1% 3.1% 3.1%
6.3% 6.8% 6.8% 6.8% 6.8% 6.8%
26.2% 26.3% 26.0% 26.0% 26.0% 26.0%
 6,757
2,253
58,009 49,150 51,807 54,128 56,791 59,852

2013A 2014P 2015P 2016P 2017P 2018P

9/28/13 9/30/14 9/30/15 9/30/16 9/30/17 9/30/18

91,279 97,968 104,826 107,970 111,210 114,546

31,980 31,654 31,654 31,654 31,654 31,654
21,483 20,946 18,850 18,850 18,850 18,850
4,411 3,275 2,728 2,319 1,971 1,675
16,051 19,261 23,113 27,736 33,283 39,940
5,706 6,277 7,218 8,301 9,546 10,978
170,910 179,381 188,389 196,830 206,514 217,643
9.2% 5.0% 5.0% 4.5% 4.9% 5.4%

150,257 167,987 179,746 185,139 190,693 196,414

20.2% 11.8% 7.0% 3.0% 3.0% 3.0%
71,033 71,743 71,743 71,743 71,743 71,743
21.8% 1.0% 0.0% 0.0% 0.0% 0.0%
16,341 15,932 15,335 15,335 15,335 15,335
(10.0%) (2.5%) (3.8%) 0.0% 0.0% 0.0%
26,379 19,784 16,817 14,294 12,150 10,328
(25.0%) (25.0%) (15.0%) (15.0%) (15.0%) (15.0%)

607.5 583.2 583.2 583.2 583.2 583.2

(3.5%) (4.0%) 0.0% 0.0% 0.0% 0.0%
450.2 441.2 441.2 441.2 441.2 441.2
(15.2%) (2.0%) 0.0% 0.0% 0.0% 0.0%
1,314.7 1,314.7 1,229.2 1,229.2 1,229.2 1,229.2
2.8% 0.0% (6.5%) 0.0% 0.0% 0.0%
167.2 165.5 162.2 162.2 162.2 162.2
4.7% (1.0%) (2.0%) 0.0% 0.0% 0.0%

24.5% 20.0% 20.0% 20.0% 20.0% 20.0%

10.9% 10.0% 15.0% 15.0% 15.0% 15.0%

2013A 2014A 2015A 2016A 2017A 2018A

9/28/13 9/30/14 9/30/15 9/30/16 9/30/17 9/30/18
146,761
13,102
1,764
3,453
14,421
16,597
5,756
5,146
207,000 0 0 0 0 0

22,367
23,916
0
16,960
20,208
83,451 0 0 0 0 0

19,764
0
104,256
(471)
123,549 0 0 0 0 0

0 0 0 0 0 0

(129,801)
0.83x
21.7%
17.9%
30.0%

2013A 2014P 2015P 2016P 2017P 2018P

9/28/13 9/30/14 9/30/15 9/30/16 9/30/17 9/30/18