Apple Financial Performance from Time to Time– Apple Inc is one of the biggest technology companies in the US and the World. They have billions of assets and generated billion of US Dollars in the last 5 years. By the way, in 2022, they have 521 retail stores and 154 thousand employees across the world. in 2021, based on the Apple annual Report, the net income of Apple reached 94 billion US Dollars. One of the biggest net income of all companies in the United States of America or maybe in the world.
Founded April 1, 1976, in Los Altos, California, by U.S. Steve Wozniak, Steve Jobs, and Ronald Wayne as investors started the company at the garage of Steve Job’s parents, they initially sold some device of computer hardware with the first product is Apple I. With their effort and hardworking, Apple can sell some of its products. Macintosh, the first personal computer without programming language had attracted people to buy it but some critics argue about the expensive price of the Apple products but performed slowly. Some challenges and inhibitions always follow the Apple Journey. Finally it disturb the journey of Apple
As an internal director, Steve Jobs must be resigned from Apple and replaced by John Sculley. They have heated debates/opinions but in the Shareholder meeting, jobs must step down as CEO because the shareholders didn’t want him as CEO. The era without Steve Jobs is the beginning of the slump era. Many products of apple cannot compete with competitors’ products. Moreover, the rising of competitors aggravates the business and financial performance of Apple. The Microsoft company, for example, with Windows Operating System has led the Operating System of Personal Computers. They control the market share of the Operating System beating Macintosh at that time. For a long time, flop products and the declining sales of Apple products led apple to the verge of bankruptcy.
Many of the flop of Apple products in the market lead Apple to bring back the former CEO and founder, Steve Jobs to deal with the problems. Steve Jobs come back to Apple in 1997 and replaced Gil Amelio. After a long journey in Next Computers and Pixar Animation, he decided to come back to Apple Computer.
Day by day, the effort of Steve Jobs has an enormous impact on apple’s financial performance. With the help of Jonathan Ive, Chief Design Officer (CDO), Apple can produce innovative products that really consumers want. Maybe Steve has learned a lot from his failure in the past. His experience and maturity give him the power to guide this company. It started with iPod, Portable Media Player (PMP) device and some consumers hunt for this device. After the success of the iPod, some products also have the same destiny. iPhone, MacBook, iMac, MacBook Air, iPad, and iPad are some favorite apple products that consumers need. At that time, Apple can be recognized as a game-changer in the technology industry. They have changed the culture and habits of people is the use of technology.
Table Assets, Liabilities, and Equities of Apples Inc from Time To Time
|in Million||in Million||in Million|
|US . Dollars||US . Dollars||US . Dollars|
|Source : Apple Inc Annual Report, 2000-2021|
After the death of Apple CEO, Steve jobs, because of Pancreatic cancer on October 5, 2011, many people doubt the future of Apple Inc. After the death of Steve Jobs, Tim Cook becomes the CEO. He was formerly the Chief Operating Officer of Apple. With his guidance since 2011, Apple still performs the growth business. Although many critics taunt his leadership because of the lack of innovations of Apple after Steve Job’s era.
Apple Financial Performance
Since 2000, apple showed incredible performance from time to time. Particularly after Steve Jobs and Tim Cook became the CEO. In the balance sheets performance, the assets of Apple grow from time to time. In 2000, the assets of Apple Inc were just 6.8 billion US Dollars and it became 351 billion US Dollars in 2021. It multiplied by more than fifty times. Furthermore, its liabilities showed an uptrend. In 2020, the liabilities of Apple Inc just 26 billion US. Dollars and it grew to 287 billion US Dollars. The Growth of liabilities from 2000 to 2021 is more than 100 times. Overall, it is in the health conditions.
Table of Revenue and Net Income of Apple Inc From Time to Time
|Apple Inc Performance|
|in Million||in Million|
|US . Dollars||US . Dollars|
|Source : Apple Inc Annual Report, 2000-2021|
Based on the business performance from time to time, Apple generated more profits except in 2001, they suffered losses. But overall, Apple always generates profits. In 2000, the revenue of Apple was just 7.8 billion US Dollars and it becomes 365 billion US Dollars in 2021. It multiplies more than fifty times. Furthermore, the net income of apple always does in the same direction. In 2000, the net income of Apple was just 786 million US Dollars. Meanwhile, In 2021, the net income of Apple reached 94 billion US dollars. It multiplies more than one hundred times in the last 2 decades.
Based on the Financial ratios obtained from the Income statement and Balance Sheet of Apple’s Annual report from 2000 to 2021, some variables can be measured, namely Debt to Equity ratio (DER), Debt to Assets Ratio (DAR), and Net Profit Margin (NPM).
Financially, the Debt to Equity Ratio of Apple is about 1.2 on average. it means that every 1 US Dollar of equities contains 1.2 liabilities. Meanwhile, based on the Debt to Assets Ratio (DAR), the average value of Apple’s DAR is around 0.48. That means every 1 US Dollar of Assets contains 0.4 US Dollars of Liabilities of the company is about 40% of assets.
Based on The performance of the company, From the variables of revenue and net income, the Net profit margin can be measured. This indicator can describe the efficiency of the net income from the revenue. Based on the average value of Apple’s NPM from 2000 to 2021, the average value of NPM is about 0.16. This value means that the net income of Apple is 16% of the revenue. The NPM can be good if the value can be higher from time to time. The highest value expresses the efficiency of the company to get profit/ net income.
Nowadays, Apple still becomes the king of technology along with Facebook, Google, Amazon, and Microsoft. They can generate a billion in profit every year. The comeback of Steve Jobs bring Apple into a glorious era, and they can compete with other big-tech companies. Some investors have shares in Apple Inc. The Vanguard Group (founded by Larry Fink), BlackRock (founded by Jack Bogle), and Berkshire Hathaway (Warren Buffett’s company) are some of the well-known investors that poured their billions of money into Apple Inc. They still believe in the prospects of the company, and it showed how interesting and profitable apple is to Investors. By the way, Apple can be the Apple itself like Steve Jobs Quotes” Stay Foolish, Stay Hungry”.
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Bibliography of Apple Financial Performance from Time to Time
Apple. 2022. Annual Report (10K). Accessed via https://investor.apple.com/investor-relations/default.aspx on March 1st, 2022.
Wikipedia. 2022. Apple Inc. Accessed via https://en.wikipedia.org/wiki/Apple_Inc on March 1st, 2022
Wikipedia. 2022. Steve Jobs. Accessed via https://en.wikipedia.org/wiki/Steve_Jobs on March 1st, 2022
Wikipedia. 2022. Tim Cook. Accessed via https://en.wikipedia.org/wiki/Tim_Cook on February 28th, 2022.
Wikipedia. 2022. Jony Ive. Accessed via https://en.wikipedia.org/wiki/Jony_Ive on February 28th, 2022.