Mgt 521 - Apple Computer Business Environment

Business Analysis Part Two"

"Team A"

Michael Pulley

MGT/521 Management

Chris Alsop

October 3, 2011

Apple Computer Business Environment

The business world is an extremely competitive environment. This paper will outline the current strength of Apple Corporation and will provide financial comparisons and health between Apple, Dell and Hewlett-Packard.

In the review of Apple's current financial statements, which includes the income statement, balance sheet and current cash flow, there are several striking items that stand out. The Company posted a record second quarter revenue of $24.67 billion and a record second quarter net profit of $5.99 billion compared to last year's revenue of $13.50 billion and a net quarterly profit of $3.07 billion. This is a 55% increase in revenue from the previous year. The major influence in the increase in revenue has been the release of the iPad2. The Apple Corporation is also a debt free company. Steve Jobs had the following statement regarding the financial strength of the company; "With quarterly revenue growth of 83 percent and profit growth of 95 percent, we're firing on all cylinders, said Steve Jobs, Apple's CEO. "We continue to innovate on all fronts throughout the remainder of the year" (Apple Press Info, 2011, p.1)

Financial Review

Apple's financial results for its fiscal 2011 second quarter ending March 26, 2011 were issued on April 20, 2011. The current income statement or cash flow shows an increase in cash and cash equivalent from $10 billion in March of 2010 to $15.9 billion in March of 2011. The company has had remarkable increases in the profits based strong on the demand of the world market for Apple's iPad2 and iPhone.

Review the company's income statement, balance sheet and cash flow to determine the financial health of the company.

Compare Apple with at least two other companies in the industry.

A) What have you learned about the company by reviewing each statement

B) Is there information in any of these statements that concerns you? If so describe what it is and what it concerns.

C) How can management use this information moving forward?

Company Financial Health Summary

Summarized the company's financial health. How does it compare to other companies in the industry.

Technological Advantages

Apple has had a long road regarding the growth of the company and the technological advantages in the marketplace. Apple has come a long ways since the Apple 2 computer. Fifteen years ago, Apple had the reputation of producing a quality computer (Mac) with a software that eliminated most viruses