Apple Inc. Financial Statement Analysis: A Case Study

3/24/2024 By My AI Financial Analysis

Apple Inc. serves as an excellent example for financial statement analysis, demonstrating strong financial performance and efficient capital management.

Key Financial Metrics (FY 2023)

  1. Profitability

    • Gross Margin: 44.1%
    • Operating Margin: 30.3%
    • Net Margin: 25.3%

  2. Liquidity

    • Current Ratio: 0.99
    • Quick Ratio: 0.92
    • Cash Ratio: 0.66

  3. Efficiency

    • Asset Turnover: 1.12
    • Inventory Turnover: 40.2
    • Receivables Turnover: 14.5

Balance Sheet Strength

  • Strong cash position ($62.8B)
  • Low debt-to-equity ratio
  • Efficient working capital management
  • Substantial share buyback program
  • Consistent revenue growth
  • Expanding services segment
  • Strong iPhone sales
  • Growing wearables business

Apple’s financial statements reveal a company with strong fundamentals, efficient operations, and solid growth prospects. Their high margins and strong cash position demonstrate excellent financial management and market leadership.