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Apr 3, 2024
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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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The business risk of a firm refers to the ____.
a.
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b.
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c.
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d.
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Profit Margin
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58.2%
58.0%
X Total Assets Turnover X Equity Multiplier
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10.2
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2.14
2.61
3.60
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Question 2 options:
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Marvin Industries: balance sheet as of December 31, 2020 (Thousands of dollars)
Cash
2,000
Accounts Payable
7,200
Receivables
10,800
Notes Payable
3,400
Inventories
12,400
Accruals
2,620
Total current assets
25,200
Total current liabilities
13,220
Long-term debt
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Fixed assets
21,600
Common stock
2,000
Retained earnings
26,580
Total assets
46,800
Total liabilities & equity
46,800
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