Obtain the annual report (10-k) for Apple for the immediate past year. The form 10-k report is accessible at http://www.sec.gov/edgar.shtml.
Write a paper fully addressing the following questions:
1. What are the keys items covered in the financial section of the report?
2. What comprises the assets of Apple? What are the total assets of Apple?
3. What comprises the liabilities of Apple? What are the total liabilities of Apple?
4. What comprises the equity of Apple? What is the total equity of Apple?
5. Does the company have pensions and other post-retirement benefits? How much?
6. Does the company have share-based compensation? How much?
7. What is the net operating profit for the last year?
8. What is the cost of goods sold in the past year?
9. What is the earnings per share for the past year?
In the notes to the financial statements, perhaps Apple has accounting changes and errors and corrections. Discuss the stated reasons and types of changes and corrections.
Provide a segmental breakdown of the markets. What is the sales volume from each market? What is the sales trend for each market for the last two years?
Does the company have leases? Does Apple have operating leases, capital leases, or both? How does Apple account for lease obligations?
Write a report in the form of a paper for Apple under the following four headings:
1. Introduction (stating the type of business and general information on Apple)
2. Financial Report (answering the specific financial questions)
Solution helps in analysing Annual report (10-k) analysis of the Apple
Calculating P/E ratios and Profit Margin for Dell and Apple. Which is stronger?
Please see file attached.
Using the financial information of http://www.sec.gov/edgar.shtml as of December 31 of each year, calculate the P/E ratios each year for the last four quarters for Dell and Apple. Which company has made the strongest recovery in terms of profit margin and which has had the strongest growth in P/E ratio. Discuss why these results might be very different with reference to corporate finance policy.
Grading Criteria Maximum Points
Correctly located the Q1 and Q2 2004 10-Qs for each company. 15
Correctly located the corresponding stock price. 15
Correctly calculated a P/E ratio for Dell as of July 30 and April 30 versus the ratio for Apple as of June 27 and March 27. 25
Noted items in the company's reports that can be directly linked to higher valuations. 25