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University of Phoenix *

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571

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Finance

Date

Apr 3, 2024

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docx

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2

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Week 3 January 29, 2023 The goal of this analysis is to thoroughly compare Apple's financial situation and the larger economic environment it operated within by looking at elements like interest rates, changes in Federal Reserve Bank monetary policy, and other pertinent market conditions. This examination delves into Apple's financial statements from the previous fiscal year, a prominent technological corporation. It also takes into consideration the market circumstances that prevailed during the same period to get important insights into the company's success. Financial Reports Comparison Breakdown 09/30/23 9/30/22 Total Revenue 383,285,000 394,328,000 Cost of Revenue 214,137,000 223,546,000 Gross Profit 169,148,000 170,782,000 Operating Expense 54,847,000 51,345, 000 Operating Income 114,301,000 119,437,000 Pretax Income 113,736,000 119,103,000 Net Income 96,995,000 99,803,000 Total Expenses 268,984,000 274,891,000 Interest Income 3,750,000 2,825,000 Interest Expense 3,933,000 2,931,000 Net Interest Income -183,000 -106,000 Focus on interest rates Apple announced financial results for its fiscal 2023 that ended September 30, 2023. The company posted quarterly revenue of $383.29 billion, down 3 percent since September 30,2022. Income increased from $-106,000 to $- 183,000, this suggests there was a small increase in the company's borrowing costs which had an impact on its net non-operating interest income. The Net Interest Apple holds the title of world's most valuable brand and is the first public company to reach the one trillion U.S. dollars milestone in market capitalization. Since its famous beginning in a garage in California, the company has grown into a tech industry giant, bringing in a staggering amount of money in revenue. The interest rates are stable but have increased this year from last years report. Federal Reserve Bank monetary policy changes The U.S. Federal Reserve has launched an effort to deflate asset prices across a variety of asset classes, but Apple shares have defied logic and are rising. There was a 33.28% change in the 52-week period. Given that many retail investors, hedge funds, and ETFs have overweight holdings in AAPL,
Week 3 January 29, 2023 any significant decline could result in a significant sell-off in the shares. Apple will need to record new 52-week lows before the market as a whole will capitulate; we think the question is not IF, but WHEN. References Yahoo Finance. (2023, May 26).Apple Inc. (AAPL) stock historical prices & data.Finance.yahoo.com.https://finance.yahoo.com/quote/AAPL/history?p=AAPL
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