Apple Inc. Financial Report
Executive Summary
Prepared by: Terry Bingman, Financial Analyst
As of June 21, 2024, Apple Inc. (symbol: AAPL) is trading at $207.49 per share, and the company is valued at $3.18 trillion. This means Apple is worth almost three times what Amazon is. The stock price has fluctuated, ranging from a low of $164.075 to a high of $220.2 this year. Despite the rollercoaster ride, Apple remains financially strong, boasting big revenues, high net income, and lots of cash.
Company Overview
- Company Name: Apple Inc.
- Ticker: AAPL
- Exchange: NASDAQ
- Current Stock Price: $207.49
- Market Cap: $3.18 trillion
- P/E Ratio: 32.27 (how much you pay for $1 of earnings)
- Dividend Yield: 0.482% (percent of the stock price paid out as dividends)
- CEO: Tim Cook
- Headquarters: Cupertino, California, USA
- Employees: ~161,000
- Founded: April 1, 1976
- Website: Apple Website
Balance Sheet Analysis
Recent Highlights
- Total Assets: $337.41 billion (Q2 2024)
- Total Liabilities: $263.22 billion (Q2 2024)
- Total Equity: $74.19 billion (Q2 2024)
- Cash and Short-term Investments: $67.15 billion (Q2 2024)
- Return on Assets (ROA): 20.19% (Q2 2024) – This means Apple makes 20 cents for every dollar in assets it owns.
- Return on Capital (ROC): 38.65% (Q2 2024) – For every dollar Apple invests, it gets about 39 cents back.
Apple has a strong financial base with significant cash reserves. The company efficiently utilizes its assets and is highly profitable.
Historical Balance Sheets
| Quarter | Total Assets | Total Liabilities | Total Equity | Cash & Short-term Investments |
|————-|——————|———————-|——————|———————————–|
| Q2 2024 | $337.41B | $263.22B | $74.19B | $67.15B |
| Q1 2024 | $353.51B | $279.41B | $74.10B | $73.10B |
| Q4 2023 | $352.58B | $290.44B | $62.15B | $61.55B |
Income Statement Analysis
Recent Highlights
- Revenue: $90.75 billion (Q2 2024) – This is how much money Apple earned.
- Operating Expense: $14.37 billion (Q2 2024) – This is how much Apple spent to run the business.
- Net Income: $23.64 billion (Q2 2024) – This is the profit after expenses.
- Net Profit Margin: 26.04% (Q2 2024) – For every dollar earned, Apple keeps about 26 cents as profit.
- Earnings Per Share (EPS): $1.53 (Q2 2024) – This is the profit for each share of stock.
- EBITDA: $30.74 billion (Q2 2024) – This stands for earnings before interest, taxes, depreciation, and amortization, showing the company's operational profitability.
Historical Income Statements
| Quarter | Revenue | Net Income | EPS | Net Profit Margin | EBITDA |
|————-|————-|—————-|———|———————–|————|
| Q2 2024 | $90.75B | $23.64B | $1.53 | 26.04% | $30.74B |
| Q1 2024 | $119.58B | $33.92B | $2.18 | 28.36% | $43.22B |
| Q4 2023 | $89.50B | $22.96B | $1.46 | 25.65% | $29.62B |
Cash Flow Analysis
Recent Highlights
- Cash from Operations: $22.69 billion (Q2 2024) – Apple made this much cash just from its regular business operations.
- Cash from Investing: -$310 million (Q2 2024) – Apple spent this amount on investments.
- Cash from Financing: -$30.43 billion (Q2 2024) – Apple used this amount for things like paying back loans or buying back stock.
- Net Change in Cash: -$8.05 billion (Q2 2024) – Overall change in cash.
- Free Cash Flow: $20.61 billion (Q2 2024) – Cash remaining after all expenses.
Historical Cash Flows
| Quarter | Cash from Operations | Cash from Investing | Cash from Financing | Net Change in Cash | Free Cash Flow |
|————-|————————–|————————-|————————-|————————|——————–|
| Q2 2024 | $22.69B | -$0.31B | -$30.43B | -$8.05B | $20.61B |
| Q1 2024 | $39.90B | $1.93B | -$30.59B | $11.24B | $33.20B |
| Q4 2023 | $21.60B | $2.39B | -$23.15B | $0.84B | $11.68B |
Stock Price Prediction
Historical Stock Performance
Over the past six months, Apple’s stock has been quite volatile, driven by market conditions and quarterly earnings results.
Key Events Impacting Stock Price
- Earnings Announcements: The stock faced pressure despite an earnings beat in Q1 2024.
- Market Trends: The stock recovered from early 2024 lows, reflecting positive sentiment.
Prediction Model
Using various data points, here are the estimated stock price ranges for the upcoming quarters:
- Q3 2024: $210 – $230
- Q4 2024: $220 – $240
Arguments and Justifications
- Strong Financials: Consistent revenue growth and high profit margins.
- Product Innovations: New products boost consumer demand.
- Market Sentiment: Positive attitudes toward tech stocks.
- Global Expansion: Expanding into new markets increases revenues.
Risks and Considerations
- Market Volatility: Unstable economic conditions.
- Regulatory Challenges: Legal and geopolitical issues.
- Competition: Aggressive competitors in the tech sector.
Conclusion
Apple Inc. is a financially robust company with innovative products and strategic growth plans. Despite potential market volatility, Apple appears well-positioned for future growth and stock price appreciation.
Prepared by:
Terry Bingman
Financial Analyst
