Apple Balance Sheet Case Study

Apple Balance Sheet Case Study - Apple balance sheet 1...

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Apple balance sheet 1 Apple Balance Sheet: Assessment Decisions to invest in an organization’s stock are based on the expectation of increasing wealth and the best available yardstick for gauging future prospects is in the past performance of the stock; all other things being equal. Concomitant with projections of the prospects of investment growth should be an astute assessment of the attendant risk to the investment. This paper assesses the Apple balance sheet comparing the state of assets, liabilities and shareholders’ equity as at 28 March 2009 and at 27 September 2008, and proffers an opinion on the desirability, or otherwise, of investing in the Apple stock on the basis of the available data. The first notable feature of Apples balance sheet (Apple, 2009) is cash position of $24.9 billion in cash and short term marketable securities. In absolute terms this looks interestingly good but must be checked against the possibility of long term debt. Only $1.7 billion shows as non-current liabilities and the total current liabilities are only $13.7 billion. Thus Apple has approximately twice as much cash as it needs to pay off its total current liabilities, thus is in no danger at all of defaulting on discharging its obligations. Furthermore this position is an
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This note was uploaded on 12/12/2011 for the course BA 101 taught by Professor Janedoe during the Spring '11 term at Grantham.

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Apple Balance Sheet Case Study - Apple balance sheet 1...

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