In preparation for the Week 4 Summative Assessment, research your companys financial reports from the past fiscal year, along with the market conditions from that same yea
Continue your work with the company you selected in Week 1.
In preparation for the Week 4 Summative Assessment, research your company’s financial reports from the past fiscal year, along with the market conditions from that same year.
In a 1- to 2-page chart, compare your company’s current financial reports with the market conditions from the previous fiscal year. Focus on interest rates, Federal Reserve Bank monetary policy changes, or other market conditions relevant to the company you selected.
Submit your chart.
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Note Please:
Writing Standards – Please follow all APA formatting requirements, in-text referencing requirements, and referencing for all work – induing discussion questions, participation, presentations, etc. Support all assertions. The UOPX APA Sample Writing Paper is an excellent resource.
Originality – if you submit work with more than a 20% turnitin match ( properly referenced or not) the work will be reviewed for originality. Work with originality issues will be scored a zero.
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Week 1 Assessment – Identifying Financial Company for a Company
Gbenga Adeogun
Carol Sommers
FIN/571
March 14th, 2023
Week 1 Assessment – Identifying Financial Company for a Company
The selected organization is Apple Inc. The firms’ symbol is “AAPL.”
Cash flow from operation – Apple Inc., flow of cash from operating activities for the fiscal year 2022 was $329.312 billion.
Price-to-earnings ratio – The Company’s PE ratio as of 10th March 2023 is 25.95.
Stock dividends and yield – The present dividend pay-out is 0.9% as 9th March 2023. Similarly the yield on the same date is 0.6%.
Earnings per share – The Company’s EPS as 31st December 2022 was 1.8% this indicates a decline of 10.98% from the previous year.
Estimate of revenue for the next one years.
Apple Inc. is expected to generate revenue of $388.67 billion in the next 12 months, according to the latest estimates. These estimates are based on the company's strong performance in recent years and its ability to continue innovating and expanding its product offerings (Macrotrends, 2023).
Revenue for the last three years.
Apple Inc.'s income for the previous 3 years are as follows:
FY2022: Apple Company reported revenue of $387.537 billion for the fiscal year 2022.
FY2021: Apple Company reported revenue of $365.8 billion for the fiscal year 2021.
FY2020: Apple Company reported revenue of $274.5 billion for the fiscal year 2020.
Apple Inc.'s statement of cash flows for the past three years (fiscal years 2020, 2021, and 2022) shows the following net cash flows from operating, investing, and financing activities (Macrotrends, 2023):
Operating activities
FY2022: $ 122.15 billion
FY2021: $ 104.04 billion
FY2020: $ 80.67 billion
Investing activities
FY2022: -$ 22.35B billion
FY2021: -$ 14.55 billion
FY2020: -$ 4.29B billion
Financing activities
FY2022: $ 111.44 billion
FY2021: $ 92.95 billion
FY2020: $ 73.37 billion
Average trade volume – 69.23 million shares (3-month average as of March 9, 2023)
Current Stock Price
As of March 10, 2023, Apple Inc.'s current stock price (also known as the market value per share) is $150.59. The 52-week high for Apple's stock is $179.61. The 1-year estimated stock price is a projection of where analysts believe Apple's stock price may be in one year's time. This estimate is dependent on a variety of aspects like historical performance, market dynamics, and future growth prospects. As of March 10, 2023, the 1-year estimated stock price for Apple is $172.01. However, it's important to note that this estimate may change over time as new information becomes available and market conditions fluctuate.
Analysts' recommendations for a stock are typically based on their assessment of a company's financial health, growth prospects, and overall market trends. Analysts use a variety of financial and non-financial data to evaluate a company and make recommendations to investors. As of March 10, 2023, the consensus rating for Apple Inc.'s stock is a "buy", according to data compiled by Yahoo Finance (Yahoo! Finance, 2023). This means that, on average, analysts who cover the company believe that its stock is undervalued and represents a good investment opportunity.
“Market capitalization,” frequently called market cap, is the entire worth of a firm's outstanding shares of stock. It can be obtained by multiplying the existing stock price of the business by the total amount of shares that are currently in circulation. As of March 10, 2023, Apple Inc.'s market cap is approximately $2.07 trillion, based on a stock price of $150.59 and a total of approximately 15.82 billion shares outstanding. This makes Apple one of the largest and most valuable companies in the world by market cap.
References
Macrotrends. (2023). Apple Pe Ratio 2010-2022: AAPL. Retrieved March 10, 2023, from https://www.macrotrends.net/stocks/charts/AAPL/apple/pe-ratio
Macrotrends. (2023). Apple Revenue 2010-2022: AAPL. Retrieved March 10, 2023, from https://www.macrotrends.net/stocks/charts/AAPL/apple/revenue#:~:text=Apple%20revenue%20for%20the%20twelve,a%2033.26%25%20increase%20from%202020.
MarketWatch. (2023). AAPL: Apple Inc.. annual cash flow statement. Retrieved March 10, 2023, from https://www.marketwatch.com/investing/stock/aapl/financials/cash-flow
Yahoo! Finance. (2023, March 10). Apple Inc. (AAPL) analyst ratings, estimates & forecasts. Retrieved March 10, 2023, from https://finance.yahoo.com/quote/AAPL/analysis/
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Wk 2:-Business valuation presentation
Gbenga adeogun
University of phoenix
Carol sommers
Fin/571
March 21st, 2023
Introduction
The reason behind this presentation is to assess the cash flow, valuation and KPI’s for financial sustainability of Apple Inc.
Apple Inc. is an American multinational corporation that is listed on NASDAQ..
The company operates with a sticker symbol of AAPL
The presentation will focus on among others, KPI such as stock price, price earning ratio and market capitalization
Two Key Performance Indicators of Apple
Revenue Growth: Revenue is a key performance indicator for Apple Inc. that measures the total amount of money their business has generated from the sale of products and services.
Earnings Per Share : It is a key performance indicator for Apple Inc. as it helps investors to evaluate the profitability of the company.
Revenue and EPS (Earnings Per Share) are two of the most important performance indicators of Apple Inc. Revenue is the total amount of money a company earns from its activities and is a key indicator of the company's success. EPS represents the amount of money that each share earns from the company's activities and is an important indicator of the company's ability to generate returns for its shareholders. As such, these two metrics provide investors with a good overview of the company's financial performance. For instance, Apple reported increased revenue in the financial year 2022 from $ 365.8billion in 2021 to $ 387.54billion . On the other hand the EPS of the company increased from $ 5.67 in 2021 to $ 6.15 in 2022.
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Stock price and price earning ratio
Stock price
FY 2022- $ 129.73
FY2021-$ 176.28
FY2020-$ 130.92
Price earning ratio
FY 2022-$ 22.03
FY2021- $ 29.18
FY2020-$ 35.45
The stock price and the price earning ratios of Apple presented above relates 31st Dec. Stock price is the cost of a single share of a company's stock. Price earnings ratio (P/E) is a measure of the stock's current market price relative to its per-share earnings. The stock price and price earning ratio of Apple fluctuated over the period due to the changes in the market conditions and investors expectations. For instance, the stock price decreased considerably in 2022 from $ 176.28 in 2021 to $ 129.73(Macrotrend 2023). on the other hand the price earning ratio decreased from $ 29.18 to $ 22.03. A decrease in the stock price can lead to a decrease in the company's market capitalization, which in turn can lead to decreased investor confidence in the company. This can lead to a decrease in investment in the company and limit its access to capital. Additionally, a decrease in the price-earnings ratio can make the company less attractive to potential investors, since it reflects the company's ability to generate profits. This can lead to a lack of capital investment and a decrease in the company's growth rate. All of these factors can have a negative impact on the company's performance.
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Apple Inc. market capitalization
Market capitalization, is a measurement of the value of a publicly traded company's outstanding shares
Apple Market Capitalization was calculated by multiplying the overall number of the company’s shares by the current market price of one share.
Market capitalization is one of the most important ways of ranking the relative size of a company.
The market cap of Apple Inc. as of March 15th 2023 is 2.42trillion based on the stock price of $ 152.88 (Macrotrend 2023):
Market capitalization is an important indicator to investors because it helps them gauge the risk and potential return associated with a particular stock. Companies with larger market capitalizations are typically more stable and have a larger pool of potential investors, meaning they are generally less volatile. For Apple Inc, its market cap is currently around $ 2.42 trillion making it the most valuable public company in the world(Macrotrend (2023). This is a testament to the success of the company and its products, and is an indication of the strong growth potential that investors see in the company. The market cap of Apple Inc is an important indicator for investors, as it gives them an idea of how much the company is worth and how its stock is performing relative to its competitors. It is also an indication of the strong growth potential that investors see in the company, and can provide an insight into the future performance of the company stock.
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Trends in Apple Inc. Stock price
FY 2022- $ 129.73
FY2021-$ 176.28
FY2020-$ 130.92
The stock price of Apple Inc. is highly dependent on the market conditions and investors expectation. In 2020 the stock price of Apple was low because of the impacts of the Covid 19 on the global economy. However, as the case of the pandemic decreased resulting expansion in the global business the stock price of Apple increased to $ 176.28. But at the end of the 2022 the stock price had declined considerably to $ 129.73. This was as a result of Apple's sales of its flagship products, such as the iPhone, had started to slow down due to increasing market saturation. As more and more people had access to iPhones and other Apple products, the demand for new devices decreased, affecting the investors expectations.
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Trends in Apple inc. dividend payout
The dividend payout of Apple was $ 0.91 in the fiscal year 2022
In 2021 the company had a dividend payout of 0.83
Apple Inc. dividend payout in 2020 was $ 0.78
Apple's dividend payout has experienced an upward trend over the past few years. The company has consistently grown its dividend payout year-over-year, with the most recent dividend payout being $ 0.91 up from $ 0.83 in 2021(Yahoo Finance 2023). This growth reflects Apple's focus on creating long-term value for its shareholders. The current market conditions have influenced Apple's dividend payout trend. More specifically is Apple's strong financial performance which has enabled it to increase its dividend payout. With strong financials, the company has been able to support its dividend payments and increase them over time.
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Trend in Apple Inc stockholders’ equity
FY 2022- $ 50.67billion
FY 2021-$ 63.09billion
FY 2020- 65.33billion
Apple’s shareholders equity has been declining since fiscal year 2020. The owners equity was $ 65.33 billion in 2020 but has since decline to $ 50.67 at the end of 2022(Yahoo Finance 2023):.The decline in Apple's shareholders equity since 2021 can be attributed to a number of factors. Firstly, Apple's share price has decreased due to the impact of the COVID-19 pandemic on the global economy. This has caused a decrease in investor confidence in the company, leading to a decline in its share price. Besides Apple has been facing increasing competition from other companies in the technology sector, leading to a decrease in its market share. This has further contributed to the decline in its share price.
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Recommendation
The current and the expected performance of Apple Inc makes many market analyst to recommend a buy for the company’s stock.
The increasing profitability and revenue growth are the two important factors that are driving this recommendation.
Based on the financial analysis and valuation of Apple I recommend a buy of its stock
Stock market analysts are currently recommending buying Apple's stock due to its strong growth potential. Apple is one of the most valuable companies in the world and is a leader in the technology and consumer electronics industries. The company has also outperformed its competitors in terms of both revenue and earnings growth, which has made it one of the most lucrative company in the world( Bai,2022). Apple's market share has also been rising, as their products have become increasingly popular. More importantly Apple inc. has also been investing in new sectors such as healthcare, entertainment, and augmented reality, which could lead to further growth in the future.
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References
Bai, M. (2022). Macro Analysis on Apple Stock In order to determine investment value of Apple. In SHS Web of Conferences (Vol. 151, p. 01032). EDP Sciences.
Macrotrend (2023):Apple stock price 2010-2022: AAPL: Retrievd March 15 from
https://www.macrotrends.net/stocks/charts/AAPL/apple/income-statement
Macrotrend (2023): Apple financial statements 2010-2022. Retrieved March 15 from
https://www.macrotrends.net/stocks/charts/AAPL/apple/financial-statements
Yahoo Finance 2023: Apple financial statements and dividend history : Retrieved March 15
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