Professional Documents
Culture Documents
AAPL
AAPL
2014
2015
2016
182,795,000
###
###
112,258,000
###
###
70,537,000 93,626,000 84,263,000
6,041,000 8,067,000 10,045,000
11,993,000 14,329,000 14,194,000
Questions
Does Apple have debt?
Does Apple pay interest expense?
Calculate the effective tax rate
Calculate EBIAT = EBIT *(1-T)
Compare EBIAT to Net Income
Would you get the same answer if Apple paid 10% interest on its long-term debt?
Look up the number of shares outstanding
Calculate EPS
Look up the share price
Calculate the P/E ratio
Answers
Yes - see the long-term debt item on the Balance Sheet
No,
the company
not pay
This is unusual.
Effective
tax rate=does
Income
Taxinterest.
Expse / Income
before
tax
EBIAT
EBIAT is the same as net income, because interest = 0
NO. Interest expense would be
therefore net income would be lower than EBIAT
Statistics tab in yahoo fin under "Share Statistics"
Net income / # of shares outstanding
Share price (opening price on Jan 10)
Price to Earnings ratio
2014
2015
2016
26.1%
26.4%
25.6%
39,510,000 53,394,000 45,687,000
2,898,700 5,332,900 7,542,700
37,368,616 49,467,297 40,072,007
5,330,000
8.6
118.99
14
Balance Sheet
2014
Current Assets
Cash And Cash Equivalents
Short Term Investments
Net Receivables
Inventory
Other Current Assets
Total Current Assets
Long Term Investments
Property Plant and Equipment
Goodwill
Intangible Assets
Accumulated Amortization
Other Assets
Deferred Long Term Asset Charges
Total Assets
Current Liabilities
Accounts Payable
Short/Current Long Term Debt
Other Current Liabilities
Total Current Liabilities
Long Term Debt
Other Liabilities
Deferred Long Term Liability Charges
Minority Interest
Negative Goodwill
Total Liabilities
Stockholders' Equity
Misc. Stocks Options Warrants
Redeemable Preferred Stock
Preferred Stock
Common Stock
Retained Earnings
Treasury Stock
Capital Surplus
Other Stockholder Equity
Total Stockholder Equity
2015
2016
5,422,000 8,757,000
231,839,000 290,345,000
48,649,000
6,308,000
8,491,000
63,448,000
28,987,000
24,826,000
3,031,000
###
60,671,000
10,999,000
8,940,000
80,610,000
53,329,000
33,427,000
3,624,000
59,321,000
11,605,000
8,080,000
79,006,000
75,427,000
36,074,000
2,930,000
120,292,000 170,990,000
###
23,313,000
87,152,000
27,416,000 31,251,000
92,284,000 96,364,000
1,082,000
-345,000
111,547,000 119,355,000
Questions
1. Calculate the amount of Net Working Capital
634,000
###
Net Income
Operating Activities, Cash Flows Provided By or Used
In
Depreciation
Adjustments To Net Income
Changes In Accounts Receivables
Changes In Liabilities
Changes In Inventories
Changes In Other Operating Activities
Total Cash Flow From Operating Activities
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures
Investments
Other Cash flows from Investing Activities
Total Cash Flows From Investing Activities
Financing Activities, Cash Flows Provided By or Used
In
Dividends Paid
Sale Purchase of Stock
Net Borrowings
Other Cash Flows from Financing Activities
Total Cash Flows From Financing Activities
Effect Of Exchange Rate Changes
Change In Cash and Cash Equivalents
2014
2015
2016
39,510,000 53,394,000 45,687,000
7,946,000
5,210,000
-6,452,000
13,408,000
-76,000
167,000
59,713,000
-9,571,000
-9,027,000
-3,981,000
###
11,257,000
4,968,000
-3,124,000
15,188,000
-238,000
-179,000
81,266,000
10,505,000
9,148,000
1,044,000
-1,867,000
217,000
1,090,000
65,824,000
###
###
###
###
-610,000 -1,221,000
###
###
###
###
###
###
###
###
18,266,000 29,305,000 22,057,000
-1,158,000 -1,499,000 -1,570,000
###
###
###
-415,000 7,276,000
-636,000
Questions
Define operating cash flow (ignore adjustments to net income)
Define investing cash flow
Calculate the changes in PP&E and Long Term Investments on the Balance Sheet
and compare it to the investing cash flows on the SCF
Why is net borrowing a positive figure?
Answers
Cash generated by the firm's core operations
2014
2015
2016
Cash spent on increasing productive capability: capital expenditures (increase in PP&E) and LT investments
PP&E
na
1,847,000 4,539,000
Long Term Investments
na
33,903,000 6,365,000
capex on the SCF is higher than increase in PP&E
SCF long-term investments differ from increase in long-term investments on the balance sheet
because it is a cash inflow for Apple
alance Sheet
d LT investments
lance sheet