Select one (1) U.S. publicly traded company and review its most recent Annual Re

ID: 2595911 • Letter: S

Question

Select one (1) U.S. publicly traded company and review its most recent Annual Report. (You may use one (1) of the three (3) companies you selected for your Stock Journal assignment.) Use the Income Statement and Balance Sheet to determine the changes in: assets, liabilities, and equity total revenue and net income Briefly describe the change from the current and prior years in each of these key areas and determine if the changes would be positive or negative from an investor / stockholder’s view.

Explanation / Answer

The U.S. company that I have selected is Apple Inc. and its most recent annual report is available for the year 2017 for the period ending 09/30/2017.

Changes - absoulte amount as well as percentage change - is shown in the table below:

As we can see from the above table that increases in total debt and total liabilities stood at 28.88% and 24.73% respectively on a year-on-year basis for 2017. These are much higher than the company’s increase in total assets which increased by 16.67% in 2017 on a year on year basis. Also increase in equity was much lower at 4.52%. This clearly shows that Apple is making increased used of leverage and debt and this will have a negative impact on the shareholders going forward. This is because increased interest payment on debt tends to reduce net income as well as free cash flows.

Total revenue grew by 4.66% while net income grew at a higher rate of 5.83%. This augurs well for the investors and shareholders as the company’s operational efficiency is causing it to reap higher profitability growth from its income.

Year 2017 2016 Change amount Change % Total current assets 128,645.00 106,869.00 21,776.00 20.38 Total assets 375,319.00 321,686.00 53,633.00 16.67 Total current liabilities 100,814.00 79,006.00 21,808.00 27.60 Long term debt 97,207.00 75,427.00 21,780.00 28.88 Total liabilities 241,272.00 193,437.00 47,835.00 24.73 Total equity 134,047.00 128,249.00 5,798.00 4.52 Total liabilities and equity 375,319.00 321,686.00 53,633.00 16.67 Total revenue 88,186.00 84,263.00 3,923.00 4.66 Net income 48,351.00 45,687.00 2,664.00 5.83

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Select one (1) U.S. publicly traded company and review its most recent Annual Re

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Select one (1) U.S. publicly traded company and review its most recent Annual Re

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