Apple Inc. is a public limited company that is involved in designing and manufacturing mobile communications accessories, both hardware and software applications, under the Apple brand name. Some of the products of the company include IPhone, Macintosh computer, IPod, IPad and digital Apple Televisions. Besides production, the company markets its products to the world market through retail and online stores as well as direct sales. The company on continually innovating new products to increase customer experience and provide value in usage of Apple products. Additionally, the company’s strategy is to increase market share through researching and developing technology-affiliated products that are most convenient for customer use. Notably, the company’s entry into third-party digital content distribution through creation of i-Tunes store for accessing reading materials (iBookstore), audio and visual contents such as music and applications which have enabled it to reach world market tremendously.
The Apple Company has enjoyed strong performance as portrayed in the financial statements, since it has a growth rate of 39% over a period of 5 years. In this paper the leverage, profitability, liquidity and valuation metrics have been employed to determine the position of a company in terms of financial strengths and weaknesses. The company’s financial reports as at 2014 reveal it had a market capital of approximately $ 660 billion. The financial conditions of the company have been influenced by the profit margins across the different product lines. The sections of this paper present the methods used to collect the financial data, the results of valuation and the metrics of measurements that are used to determine the performance of any public limited company….